Thursday, October 30, 2014

Native Advertising Bolsters the New York Times

Digital-ad revenue at The New York Times increased by 16.5% to a total of $38.2 million in Q3 2014. This was fueled by native advertising, a form of online advertising that matches the form and function of the platform on which it appears. The New York Times manages its native-advertising through its Paid Post product, which launched this past quarter. Paid Posts are ads that look like editorial articles but are not created by the newsroom and are labeled as ads.

It appears that The New York Times is mirroring to its print roots where advertisements are integrated among editorial stories or placed as an insert. The ad is labeled "sponsor generated content" and has different formatting and fonts, but sits among newsroom generated content. This is a more discrete way to grab the audience's attention and engage them in the material.

While digital ad sales comprise more than a quarter of total ad sales at The New York Times and the company is employing creative methods to capture audiences, it seems that it is still struggling with its digital platform overall. More than 50% of The New York Times' digital audience is on mobile while only 10% of digital advertising revenue is generated by mobile. This is a result of the fact that advertisers are not willing to pay as much for ads on mobile sites compared to desktop sites. However, the Paid Post platform combats this trend as branded content can be designed for mobile viewership.

Source: http://adage.com/article/media/york-times-reports-flat-ad-revenue-quarter/295650/

No comments: