Commentary

Premium Brand Advertising Can -- And Will -- Be As Easy To Buy As Direct Response

If nothing else, Yahoo’s acquisition of Tumblr puts a spotlight directly on the importance of content. Content has always been a website’s most valuable asset, but now it’s a brand advertiser’s most valuable asset, too. (Unless you’ve been hiding in linear media, you’ve probably noticed the content and native advertising trends that have swept the industry in recent years.)

Large companies like Coca-Cola and Whole Foods have been leveraging Tumblr, along with other, less acquirable social platforms, to reach audiences with their branded content, and several entertainment companies have also jumped on board. Tumblr is one of the best places online for brands to reach passion-driven audiences with content, and savvy marketers have taken note. And it’s clear, with the introduction of “Stream Ads” and its new Billboard unit, that Yahoo is trying to become a bigger player in the brand advertising space.

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But who isn’t, these days? According to Nielsen, brand advertising is beginning to outpace direct response in growth. Clearly that’s where the money is, so it’s where the smart CEOs should be focusing their efforts. And if content marketing is where brands are directing their dollars today, then The Big 5 (Google, Yahoo, Facebook, AOL and Microsoft) should be jockeying to support their efforts. So, despite the huge price tag, Yahoo may have made its smartest acquisition to date. With all that fresh Tumblr content, Yahoo is creating more inventory (adjacent to passion-driven content, no less!) and more opportunities for brand advertisers.

But there’s one obstacle between all that content and Yahoo’s bank account: actually selling the inventory. Oh, if only brand advertising were as easy to buy and sell as direct-response advertising! Yahoo used to be really good at selling direct response with its Overture platform, remember? No one makes it easier than Google does to buy direct response, though. Between AdSense and AdWords, it’s an idiot-proof process.

So why can’t buying and selling brand advertising -- even premium brand advertising -- be that easy?

Really, there’s no reason it shouldn’t be. And fortunately, the industry is moving in a direction that will make that transactional simplicity a reality. For some of the reasons referenced above, and a few more I’ll address, we’re building a perfect storm for easy, breezy, real-time brand advertising.

1.  Content marketing is a huge priority for CMOs at global brands today. Ads featuring content are becoming more popular as a result, and becoming easier to create with the help of ad units like the Rising Stars and the growing adoption of HTML5.

2.  As mentioned, brand dollars are growing quickly and finally outpacing DR dollars in growth. Which means that the industry priorities will shift – will HAVE to shift – to brand advertising priorities. That means bigger, better ad units and more of a focus on high quality content.

3.  The rapid adoption of tablets. Tablets open up fantastic brand advertising opportunities. The technology behind them and the user experience are ideal for engagement and interactivity, so rich-media advertising is a no-brainer. Users expect and want to swipe ad units open, pull open HD video elements, move  other elements around. It’s part of the tablet experience. Plus, the reduced screen size lends itself to a more optimal share of voice: who wants to see more than one or two ads on a tablet page?

4.  Metrics are evolving.  With companies like Neilsen, whose pedigree is in television, moving further into the digital measurement space, we’re starting to think about measuring the success of ad units more like we measure TV commercials. It’s less about the click-through and more about dwell time, sales lift and brand lift. Recall my conversation with Jonah Goodhart from Moat a few weeks back. They’re thinking in the right direction.

With the planets aligning like this, the time is right for brands to start thinking about programmatic. We have everything we need to make it work for them: great content, stellar ad units, the right metrics, and multiple screens on which to view and interact. All the pieces are there; we just have to fit them together.

It’s going to happen, and it’s going to happen soon.

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