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             The status quo

             of programmatic


            If mobile app developers in the early days focused   ber of publishers and advertisers by making advertising
            mostly on winning new users to succeed internationally,   more cost-effective and transparent in the mobile sec-
            rethinking kicked in by now, since intrusive mobile ad-  tor. Consequently, the next logical step is to offer and
            vertising is unacceptable nowadays! This paved the   purchase native ads bookings programmatically, too -
            way for native ads, which possess the characteristics of   although mobile native ads still face two fundamental
            being effective and at the same time less intrusive to   challenges:
                                                                 So far, there are no uniform standard formats: The
            Impressive figures, such as from Facebook with en-   confusing number of mobile advertising competitors, as
            gagement rate improvements of up to 60 percent and   well as the various platforms, systems and advertisers,
            an increase in retention rates by three, suddenly made   make it difficult to set uniform standards for various rea-
            interest in native ads soar.                         sons. "Native" is a very broad term with different defini-
                                                                 tions – since most publishers have their own versions
            In fact, the limited screen space, usually a disad-  of native ads formats and therefore different views
            vantage of mobile devices, helped to enforce native   about how and if standard formats should be available.
            advertising in the mobile sector: with so little room to
            place banners, ads must integrate perfectly into the   Facebook and Google are hard to beat, with their
            predefined format that was previously occupied by edi-  enormous reach and advanced targeting opportunities.
            torial content.                                      Hence the bulk of advertising budgets goes directly
                                                                 there. The dominance of Facebook makes it difficult for
            Native ads show higher commitment rates in mobile    competitors to push into this market, as well as to cre-
            than desktop-based applications, however, despite its   ate any kind of standards since the market is biased.
            increasing popularity, the rapid growth of the
            “programmatic mobile native ads” is still due, same as   In summary, this mean that, while the standardization
            with other mobile ad formats, such as video or intersti-  of mobile native advertising is only a matter of time,
            tial ads. Which poses the question why that is so and   publishers still need to learn to market their audience
            when programmatic can be expected on a larger scale.   outside of Facebook and Google. And although the In-
                                                                 teractive Advertising Bureau (IAB) already published a
            Anyway, even if native ads are very effective, there is a   "Native Advertising Playbook", it is unlikely that the
            catch: They must be placed in a conventional, non-   market will experience significant changes that are
            programmatic way. To make a native ad truly "native",   broad enough to introduce general standards for native
            the ad should adapt to the format of the respective me-  ads. Most likely, the native ad formats introduced by
            dium - and, of course, each platform presents its con-  Facebook and Google will become the quasi-standard
            tent in a different way. As a result, native advertising is   for native in-app ads, because of the dominance of the
            a very time-consuming process that must be set up for   two in the market regarding app monetarization (on the
            every platform anew. At the same time, this has also   offer side) and advertising spending (on the demand
            led to the fact that channels with a particularly large   side). This leads to smaller vendors copying over and
            range and strong targeting possibilities, such as Face-  over again the format - which is already happening -
            book and Twitter, already have occupied a huge part of   both at the ad platform level and the app developer
            the market. The constraint confined the growth of the   side. As soon as these standards are established, and
            native advertising industry enormously. For other for-  publishers understand their audience, nothing is hold-
            mats, such as banners and interstitials, the program-  ing them back to embrace “mobile native programmat-
            matic media trade opened the market for a larger num-  ic”. ◊                          By MediaBUZZ
      8            October 2017 - Programmatic & Native Advertising
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