By Joe Pulizzi published December 6, 2014

This Week in Content Marketing: Why It’s Impossible to Scale Native Advertising

Episode55-01 PNR: This Old Marketing with Joe Pulizzi and Robert Rose can be found on both iTunes and Stitcher.

In this week’s episode, Robert and I talk about the finalized deal between the Association of National Advertisers (ANA) and the Business Marketing Association (BMA), and then quickly dive into Scripted’s newfound venture capital money. In addition, we talk about the huge increase in native advertising spending and discuss the difference between native advertising and advertorials. After going through some 2015 CMO predictions, Robert rants about invective marketing and I rave about a hyper-localized Christmas book. We wrap up the show with a #ThisOldMarketing example from Arla Foods.

This week’s show

(Recorded live on December 1, 2014; Length: 54:37)

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1. Content Marketing in the News

  • BMA and ANA together … (6:00): The ANA and the BMA have announced that their boards of directors unanimously approved plans for BMA to become a division of ANA as of November 30, 2014. I remain concerned that BMA will be completely subsumed into ANA and may disappear forever. ANA says it will put additional resources into BMA to strengthen it. Let’s hope so.
  • Scripted Takes $9 Million (9:07): Scripted.com, the leading content and writer marketplace, has secured $9 million in venture capital funding, led by Storm Ventures. Two existing investors, Crosslink Capital and Redpoint Ventures, also participated in the round. They intend to use this capital to expand their stable of writers and improve their technology. Robert and I discuss why the pace of mergers and acquisitions could increase in 2015, and how content marketing is likely to fit into the picture.
  • Native Advertising to Jump Despite Marketer Reservations (14:40): A new eMarketer study predicts that marketers will spend $4.3 billion on native advertising in 2015, a 34% increase from this year. That number is expected to reach $8.8 billion by 2018. However, some brands remain concerned that native is hard to scale. I think these numbers are low; Robert predicts we’ll see an uptick in brands creating their own media properties, and he explains why. Nenad Senic, the European editor of CCO magazine, believes native advertising and advertorials are identical; Robert and I discuss what makes them slightly different.
  • 2015 Predictions for CMOs and Digital Marketing (27:40): This article from Forbes aligns and summarizes a number of predictions for CMOs and digital marketing. One statistic, quoted from Gartner’s CMO Spend Report, jumped out at Robert and me: “Marketers are managing a P&L and generating revenue from digital advertising, digital commerce, and sale of data.” We know the trend is headed in that direction, but only a handful of companies are doing it today. We need to take a closer look at this report to determine the accuracy of its claims.

2. Sponsor (36:54)

  • This Old Marketing is sponsored by Emma – email marketing for the modern brand, featuring mobile-responsive templates, social integration tools, and concierge services. Emma is promoting a new report entitled Automation Demystified: A Modern Marketer’s Guide to Email Automation. You’ll learn how to create undeniable value for subscribers, welcome new subscribers without creating new content, and boost conversions with timely sends based on life cycle milestones. You can register for it at http://bitly.com/pnr-autoemail.

guide-to-automation-emma image (4)

3. Rants and Raves (43:12)

  • Robert’s Rant: Dan Matthews, in a recent Forbes column, shines a light on the growing practice of “invective marketing” – being a controversial jerk to attract attention and, ultimately, profit. Trying to become famous by being a troll is the worst advice ever, Robert proclaims.
  • Joe’s Rave: I recently came across two books entitled Santa is Coming to Cleveland and Santa is Coming to Ohio at a bookstore. Each version had content that was customized to its location. I investigated further and learned that the author, Steve Smallman, has created over a hundred localized versions of this book. It’s an awesome example of hyper-local marketing.

4. This Old Marketing Example of the Week (47:15)

  • Arla Foods: Arla is a cooperative owned by 12,500 farmers and is the largest producer of dairy products in Scandinavia. It has been doing content marketing for over 40 years using a unique medium: The side panels of milk cartons. This initiative started out with safety tips for families and evolved to include recipes and short stories for children. During the last few years, this marvelous collection of content has been repurposed into a recipe website, recipe books for parents, as well as storybooks, and a website for children which contains interactive versions of the milk-carton stories. All of this content reflects the cooperative’s ethos of dairy as a healthy, organic, local product.

 

arla-milk-carton-stories-screenshot

For a full list of PNR archives, go to the main This Old Marketing page.  

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Author: Joe Pulizzi

Joe Pulizzi considers himself the poster boy for content marketing. Founder of the Content Marketing Institute , Joe evangelizes content marketing around the world through keynotes, articles, tweets and his books, including best-selling Epic Content Marketing (McGraw-Hill) and the new book, Content Inc. Check out Joe's two podcasts. If you want to get on his good side, send him something orange. For more on Joe, check out his personal site or follow him on Twitter @JoePulizzi.

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  • http://manigandham.com/ Mani Gandham

    Native advertising being impossible to scale is just not true…

    “Scale” itself is already very subjective and has many varying levels that should really match up to the advertiser’s objectives for a campaign, not some universal standard.

    And there are plenty of new adtech companies providing the ability to combine actual premium content with the syndication and targeting to reach any user on the web.

    Instinctive is one of the leaders in native advertising and we’d love to show anyone interested in the next generation what we can offer.

    https://InstinctiveAds.com

    • http://contentmarketinginstitute.com/ Joe Pulizzi

      Hi Mani…well, it depends on your definition of scale. As the article talks about, there is no way to get the kind of scale with native as you can from traditional advertising…because in order for the content to be successful it has to be super relevant to that particular audience. Very very hard to do this at scale without taking into consideration every independent audience you are targeting with that particular content (in my opinion).

      Thanks so much for commenting.

      • http://manigandham.com/ Mani Gandham

        Hey Joe,

        That’s what my point (and my company’s strategy) is all about; scaling native through tech.

        In the same way display can be targeted to the right user through the use of refined adtech platforms, we now have native working the same way to reach the right users across the web, while seamlessly rendering content the right way to make sure the look/feel part of the native equation still holds.

  • Nick Beaumont

    Invective marketing… just no. If you read that Forbes article, they talk about a lady named Kate Hopkins, and she is seriously one of the most hated people in the country. It’s despicable to think of people doing this.

    Content Marketing is supposed to be about brining people together through trust, communication and Youtility. But this is just the absolute opposite. I really hope it doesn’t take off. I wrote my full opinion about it here if you fancy a look:

    http://www.nicholasbeaumont.com/2014/12/07/invective-marketing-monetizing-troll/

    By the ways guys, I love the podcast – incredibly professional, informative, and your smooth American voices tickle my British heart just right. Bravo, and keep it up!

    Nick

    • http://contentmarketinginstitute.com/ Joe Pulizzi

      So true…and thanks Nick for the comment. Keep it coming!