77% Of Ad Agencies Are Now Able To Explain Native Advertising To Their Clients

A recent UK study queried ad agencies about their thoughts on native advertising. While 77% of agencies are now comfortable explaining native advertising to clients, many are concerned about how to scale the practice and 63% don't think the practice is effectively regulated. Furthermore, 83% of agencies now include the practice of native advertising as part of their digital offering and the other 17% plan to do so in the immediate future. In aggregate, the study -- conducted by FaR Partners on behalf of ad platform Adyoulike -- found that UK agencies believe native advertising will comprise 9.2% of total digital spend in 2014 and 14.7% by 2015.

In what may be the most cogent and refreshing viewpoint heard from an ad agency exec, Monica Little, who is stepping down as CEO of Minneapolis-based Little & Co., said: “I made the decision years ago that I didn’t want to sell to an outside firm because I’ve seen other companies that did and they were eviscerated. I like money, but my mortgage is paid. And I’m not about wringing as much as I can out of the company. Life is too short. It was about valuable work and working with these smart people.” Thanks for that, Monica. You've given us hope that the entire advertising industry is not populated entirely with money-grubbing power grabbers who are more concerned with how many toys they have versus how well they take care of their agency and its employees.

Hmm. Who knew Segway still existed? The thing was supposed to reinvent human transportation and all it has become is a joke in a movie about a mall cop. Anyway, the brand has announced that it has selected Aroluxe to serve as its agency of record. Segway will lean on Aroluxe to bring "uniformity and a fresh direction" to the brand with new creative, sales and dealer support, demand generation programs, and an ecommerce Web site. Of the agency selection, Segway VP of Marketing Brian Buccella said: “As we move our brand forward into new and emerging EV segments, we wanted a partner who could take our vision of redefining the green personal transportation market, bring it to life, and then amplify that vision across all channels. For us, there’s no doubt that we made the right decision. We look for passion and creativity, and Aroluxe has a surplus of both.” Well, anyway, good luck expanding beyond mall cops.

iProspect has hired Sam Huston as chief strategy officer. Prior to joining the iProspect team, Huston was partner, SVP of Strategy and Innovation at Jumptank. He also worked across the Dentsu Aegis Network, including Carat, Isobar and Vizeum. Over the last 14 years, he's worked across agency specialties including media, creative, and entertainment. He worked on P&G, Adidas Boost, Red Bull, Disney and GoPro. In this role, Huston will oversee client campaigns and service team collaborations. Based in San Francisco, he will report to iProspect President Jeremy Cornfeldt.

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3 comments about "77% Of Ad Agencies Are Now Able To Explain Native Advertising To Their Clients".
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  1. curtis anne from ADM Enterprises , September 2, 2014 at 8:07 a.m.

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  2. Nathan Easom from MobileROI , September 2, 2014 at 9:18 a.m.

    Is this an example of Native ads Curtis Anne?

  3. Anni Paul from BoscoSystems , September 2, 2014 at 8:26 p.m.

    That's funny. So they can "Explain it"... okay, but can they do it correctly? Other than what we're seeing from a few major publishers and quality ad platforms like Airpush and Facebook, it's hard to say that there's a lot of good native advertising out there.

  • Former Arbitron, Simmons And Campbell-Ewald Exec Heads to Telmar

    Media planning software provider Telmar has named former Arbitron, Simmons, Traffic Audit Bureau and TNS exec Anna Fountas to the position of President of the Americas. Fountas will lead Telmar’s sales and client service organization in the U.S., Canada and South America to further expand usage of its core media planning system as well as applications for emerging media and data integration. 

    On joining Telmar, Fountas said, “Media planning software is more important than ever. Every day advertisers get more options, complexity, data and urgency to contend with. Advertising depends utterly on targeting, and targeting relies increasingly on data synthesis. Nothing performs like Telmar. I’m excited to have the opportunity to extend Telmar’s lead in performance and move the advertising business forward by increasing the number of planners with real-time capability.”

    Over the years, Fountas has introduced media research standards and advanced the state of the art for providers as well as associations. As president of the Traffic Audit Bureau, Fountas helped modernize the out-of-home measurement system. As president for syndicated studies at Simmons, she helped create the strategy for Hispanic measurement services. Earlier, as svp/sales and marketing/advertiser/agency services at Arbitron, she led the team that developed the first PC-based ad expenditure application for advertising data. She also ran sales and marketing for the TNS AdScope service, research for the Digital Place-Based Advertising Association (DPAA), and media information services for ad agency Campbell-Ewald.

  • Red Tettemer O'Connell +Partners Surprises Employee With Porsche Boxster

    Agency retreats are not usually an occasion many look forward to. After all, it's an event usually filled with silly personal development games and come-to-Jesus fervor that just causes everyone to wince as if you were witnessing your father wearing a Speedo.

    But RTO+P went for something different this year, as they did several years ago when they awarded PR and Social Director Annie Heckenberger with a 1977 Midget MG. This year, the agency surprised managing Director Perry Morris with a 2002 Porsche Boxster.

    But it wasn't simply a luck-of-the-draw thing. Morris had to demonstrate her skills. That is, her music trivia and Hungry Hungry Hippos skills. Who knows what that has to do with advertising but who really cares? An agency gave an employee a car! OK, a really, really old car but a cool car none the less. And that's just awesome.
  • This Ad Blocker Blocks Ads With...Award Winning Ads

    In celebration of its 2015 Pencil awards, British ad organization D&AD, with help from Paris-based BETC, has launched The Ad Filter, a browser plug in for Chrome and Firefox that will replace preroll ads with D&AD-winning ads.

    It's all to "celebrate creativity by inspiring and stimulating people in the industry and beyond. We wanted to demonstrate that people don't hate advertising, they just hate bad advertising," says BETC Paris Creative Director Olivier Apers.

    This is, perhaps, one of the most awesome time-wasters ever created. Well, at least for those of us in the ad world. After all, what's more inspiring than staring at a computer watching award-winning ads you didn't create to both madden you into despair and motivate you to greatness?
  • Financial Sector To Up Digital Budgets To $10 Billion Annually By 2019

    It's not a surprise that many brands are shifting their marketing budgets away from traditional media and toward  digital media but the financial segment is set to experience big shifts over the next four years according to recent eMarketer research. 

    The researcher forecasts an 11.7% compound annual growth rate between 2014 and 2019 for the financial sector, resulting in a $10 billion annual digital ad spend. According to Kantar Media, between 2013 and 2014 alone, television spending (across all sectors) dropped 4.7% from $3.4 billion to $3.2 billion, while online spend increased 20.4% from $2.4 billion to $2.9 billion.

    Dramatic spending drops were seen in magazine (down 7.3%), radio (down 10.9%) and outdoor (down 11.4%).

    In terms of spending objectives, eMarketer forecasts that the financial sector will allocate 62% of budget (or $4.46 billion) to direct response and 38% of budget (or $2.73 billion) to branding by the end of 2015.

    Search will dominate paid media spending for the financial sector in 2015, representing $3.40 billion or 47.3% of U.S. financial services total digital ad spending. eMarketer estimates that paid digital display will closely follow, with $3.02 billion of the financial sector’s budgets projected to flow to the category by the end of the year.

    Mobile is also an active area for financial brands. According to eMarketer, mobile advertising for the sector is expected to hit $3.49 billion by the end of 2015 in comparison to $3.7 billion spent on desktop.

    Social media has also seen significant spending increases, with financial brands increasing the share of budget to 8.8% in 2015, up from 5.9% in 2014 according to Duke University's Fuqua School of Business.

     

  • SS+K Gives Middle Finger to Open Office Haters

    Recently, there's been increased debate surrounding the open office concept and its effect on productivity. Various articles and studies have pointed out that it may not be as productive a work environment as old-school offices with walls and doors. Some posit that the concept fosters the creative spirit. Others posit that the concept fosters distraction and anxiety.

    While many agencies have gone open concept, one is publicly proclaiming its love for the concept in an open letter published in Ad Age. Penned by SS+K Partner and Chief Creative Officer Bobby Hershfield, the letter reads like a "facts be damned" opinion piece which, truth be told, is perhaps all well and good. After all, what works for some, doesn't work for others.

    In the letter, Hershfield thumbs his nose at stats highlighting the downside of the open office concept and touts the concept's benefits as he sees them. He writes: “We don't rely on email so much. We talk. Email follows up a conversation instead of initiating one, or even worse, substituting for one. We don't just share ideas. We wad them up and toss them at each other, blurt them out, interrupt and criticize and applaud them. We talk more. Walk around. Offer suggestions enroute to the bathroom. We don't hide in our offices. We don't hide behind walls. We are exposed and sometimes that fear puts pressure on us to be better in every aspect of our job." 

    He finishes, writing: "We are happier. We are less complacent. Less bored. We are stimulated. And we are getting to know one another better, which makes a culture that really is only about people and [making] ideas stronger."

    There never will be an answer to this conundrum mostly because everyone has a different work style. Some love the thrill of constant interaction and lobbing ideas back and forth while eating their lunch and walking on their standing treadmill desk. Others love to cocoon themselves and let prior interactions gestate into well-formed ideas which are then shared to a larger group. To each their own, I guess.

  • Hey Agencies, Here's 5 Reasons Why Startups Should Pay You More

    David Murdico, creative director and managing partner of Supercool Creative Agency puts forth a solid argument as to why startups should pay agencies more than brands do for the same work. 

    First of all, he notes a startup is an unknown entity and no one has ever heard of it before making it all the more difficult to create the necessary marketing program to achieve awareness and sale. He notes startups are generally more demanding than established brand marketers, often times because so much is at stake.

    Perhaps the biggest problem area when it comes to crafting marketing for a startup is that up until the point the startup reached out to an agency, everything about the startup has, thus far, operated in an echo chamber with scant few nodding and bobbing their heads in agreement without truly vetting the idea or how the idea will be perceived in the real world.

    Another challenge when working with a startup? They tend to change their mind a lot about, well, everything. And that can be a gigantic time suck. Check out Murdico's entire list here and file it away in your back pocket for use the next time you consider working with a startup.

  • This Consultant Argues CMOs, Not CFOs and COOs Should Rise to the Office of CEO

    Max Brand Equity President Richard Guha says marketers should own and run businesses. He notes that many CEOs are culled from the CFO and COO ranks rather than the CMO ranks. 

    Making the argument, he writes: "If Marketing were to do its job perfectly and customers were to come and buy, there would be no need for Sales. So if only Marketing could do its job perfectly, it would be the 'go-to' function in business. Yet, companies routinely look to the CFO or Head of Operations, who do not directly contribute to the key objective of the company when it comes to choosing a CEO instead of promoting the CMO to CEO. Why?

    Why, indeed? 

    Well, he says too many marketers rely on gut feel rather than sound, scientific analysis. He notes: "Engineers can’t [rely on gut feel], or bridges would collapse, buildings crumble, and machines fail. Marketers need to think more like good engineers than mere wielders of tools."

    Do marketers lack the ability to approach brand building in the manner Guha advocates? Or is the nature of marketing and advertising too "squishy" to be crafted with exactitude akin to engineering a bridge? Is it silly to even compare the two?
  • Tumblr Blog 'Mad Men Integrated' Envisions Mad Men Characters In the Digital Age

    This is gold! Gold, I tell you! And it's arrived just in time. As we all mourn the loss of our beloved Mad Men characters, they have been given renewed life, in the form of a Tumblr blog, as digital natives spewing all the usual buzzword bingo that's so prevalent in today's marketing landscape.

    Taking on the form of animated gifs, we have Don informing his secretary: "The future of advertising is socially integrated digital platforms." We have Peggy commending a co-worker saying: "Nice branded social post, bro." We have Don asking Peggy: "But does it work as a pre-roll." We have Don reacting to a proposed "Tinder-powered drone." We have Pete telling Don: "The CTRs need optimizing for behavioral targeting of Millennials." 

    And on and on and on. Brilliance.

  • Former Y&R Exec Heads To Children's Hospital Of Chicago

    Kary McIlwain, a 26-year veteran of Y&R, is heading to Ann & Robert H. Lurie Children's Hospital of Chicago in July taking the position of vice president of marketing. Since 2002, McIlwain has been president and North American managing partner of Y&R.

    Of Mcllwain, Children's Hospital President and CEO Patrick Magoon said: "We are excited to have a marketing executive of her caliber joining Lurie Children's. With her expertise and passion, Kary is the ideal leader to oversee our marketing efforts in support of the hospital's mission."

    Under McIlwain's tenure, Y&R was named 2014 Agency of the Year by the Chicago Advertising Federation. On joining Children's Hospital, Mcllwain adds, "I am thrilled to embark on this new phase in my career, to step out of the advertising agency world into promoting a mission-driven organization. Lurie Children's is a world class hospital that deserves world class recognition." 

    Linda Wolf, former chairman and CEO of Leo Burnett Company, chairs Lurie Children's Marketing Committee and said, "I have known Kary for many years and I have watched her grow into one of the top marketing executives in the country. Her deep knowledge of the advertising world and her track record of exceptional outcomes will greatly benefit Lurie Children's, one of Chicago's beloved institutions."
  • This McCann Mad Man Says Computers Have Destroyed Creativity

    Greg Birbil worked at McCann for over 40 years. He started in 1961 and retired ten years ago. In an interview with Vulture, he relives some memories from the Mad Men era of advertising but has no kind words for the current state of things, especially the use of technology in creative departments.

    Of that inevitable development, he says, "You know, I have a whole theory: I just think computers are not good for creative people. They’re a finishing-up tool, not the instrument to help you create. It’s not because I’m an old guy -- because I don’t respect or understand the value of the computer or the internet. It’s a pencil, an extremely fast pencil."

    He continues: "But the computer guys, at a digital agency, they’ve got their heads in the screen all day and have absolutely no human skills. An art director in the old days was dealing with typesetters, photographers, the client. These guys don’t. You’re looking to make people see things in a new way, and if you’re in there looking for stuff, that won’t happen."

    Is he right?
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