What Does “Native Advertising” Cost?

Felix Salmon points out that online ads are “easy to ignore, there’s nothing inherently interesting about them, and insofar as they grab your attention, they tend to do so in a very annoying way, by preventing you from reading or watching the thing you were looking for”:

Hence the rise of so-called native ads: things you want to read and look at and click on. There’s a certain amount of promise there, and the native-ad industry is certainly going to grow from its present size. But it’s tough: building these things is a huge amount of work for the advertiser, with no guaranteed payoff. And selling them is even more work for any publisher. And here’s the next big problem with selling online advertising, especially native advertising: it’s really expensive to do so. While online journalism is still cheap, online ad-sales staffers tend to cost a fortune, especially if they have a clue what they’re doing.

He goes on:

I was told this evening that Buzzfeed alone has no fewer than sixty ad-sales people, all of whom are out there, knocking on doors, taking potential clients out to lunch, and generating income one hard-won deal at a time. That doesn’t scale.

Guess Which Buzzfeed Piece Is An Ad, Ctd

Back in July, Chris Dixon passed along an email BuzzFeed founder Jonah Peretti sent to the company’s investors detailing their strategy:

We care about the experience of people who read BuzzFeed and we don’t try to trick them for short term gain. This approach is surprisingly rare.

How does this matter in practice? First of all, we don’t publish slideshows. Instead we publish scrollable lists so readers don’t have to click a million times and can easily scroll through a post. The primary reason to publish slideshows, as far as I can tell, is to juice page views and banner ad impressions. Slideshows are super annoying and lists are awesome so we do lists!

For the same reason, we don’t show crappy display ads and we make all our revenue from social advertising that users love and share. We never launched one of those “frictionless sharing” apps on Facebook that automatically shares the stories you click because those apps are super annoying. We don’t post deceptive, manipulative headlines that trick people into reading a story. We don’t focus on SEO or gaming search engines or filling our pages with millions of keywords and tags that only a robot will read. We avoid anything that is bad for our readers and can only be justified by short term business interests.

Instead, we focus on publishing content our readers love so much they think it is worth sharing. It sounds simple but it’s hard to do and it is the metric that aligns our company with our readers. In the long term is good for readers and good for business.

He goes on:

A couple years ago, we were trying unsuccessfully to sell social advertising to a market that only wanted to buy banners but things have changed dramatically since then. Now many agencies and brands are refusing to buy banners, companies that rely on traditional display units are suffering, and budgets are shifting rapidly to social advertising. One of our board members, who was initially skeptical of our decision to not run banners, recently said that “social advertising will be the biggest media business since cable television.” Times have changed.

Now we are leading the market, which is a huge opportunity, but it was pure luck that a social advertising market even exists for us to lead. It’s like we happened to start surfing a few minutes before a great wave rolled in. Or we built a locomotive and a few days later the train tracks got built. We were obsessed with social content and ads before anyone else cared and it was extremely lucky that the world shifted toward us when it did. The question now is how well we capitalize on our good fortune.

More:

Some companies only care about journalism and as a result the people focusing on lighter editorial fare or advertising are second class citizens. Some companies only care about traffic which creates an environment where good journalists can’t take the time to talk to sources or do substantive work. Some companies only care about ad revenue and actually force editors to create new sections or content just because brands want to sponsor it.

People don’t do good work when they feel like losers and are second class citizens within their own company. Fortunately we have avoided that problem. We love the silly, we love the substantive, and we love making advertising that is actually compelling. And when we are good at these three things it benefits everyone and the world.

One more highlight:

Our teams focused on social advertising are totally killing it, with a consultative sales team full of ideas for clients, a creative services team making incredibly entertaining and sharable ads, a social discovery team expanding campaigns to Facebook, Twitter, and across the web, and an ad ops team that traffics our campaigns with skill, grace, and dogged determination – it’s not surprising we are blowing away all our revenue goals. Gong!

The Buzzfeed Model – From The Horse’s Mouth

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Here’s some real clarity on the concept of “sponsored content” or “native advertizing”. It’s from Buzzfeed’s own presentation last week at a media conference by Jeff Greenspan and Mike Lacher.  A key section is around the 3:40 moment where they explain how they take an advertizing campaign like the Mini’s – “Not Normal” – and then, instead of running a banner ad on those lines, they create a Buzzfeed page on “10 Not Normal Things That Actually Exist.” Here’s how the presenter(s) explains this:

This is an example of our editorial content … so then the thing we work on is sort of how to make branded content sort of like fit alongside this editorial content … there are no banner ads at Buzzfeed at all. We all have content that feels like editorial. We do not trick anyone into thinking this is an ad … If you go to the post, there are two places where the client’s name is listed in the by-line and in the text …

Later in the clip, we get even more honesty:

I’m sure there are brands who would love a headline to be 23 great things you can find at Ikea – not … I know lots of brands that would love their names in a headline but then that screams of an ad. So we have to explain to them that in order to get the results they want is to act like editorial content, act like you’re in the space that you’re in.

Here’s the dialogue between me, the Atlantic’s Derek Thompson and Ben Smith last week:

BEN: I could live with a new word because I think advertorial — to me what that means is like something they paid – usually a quite low quality piece of propaganda that people are tricked into reading because it looks exactly like editorial content – but I actually think though that that’s – like our trick, and the trick that the business side here is attempting to pull of is to produce great content for people … who know our ads and like [them].

ANDREW: So the content is ads – that’s what you’re saying?

BEN: I look at it as great…

ANDREW: So what distinguishes that content from your content?

BEN: Only the label, only the, only the clarity of the label

DEREK: The label makes it..

ANDREW: But you don’t have “advertisement” at the top of it

DEREK: But if they did?

ANDREW: It would help

Will they do that? It would tell us a lot.

Guess Which Buzzfeed Piece Is An Ad, Ctd

A reader writes:

I think your strong aversion to the sponsored content model is due to two factors: 1) your profession 2) your generation. To someone like me (I’m 27), there isn’t much of a difference between ads and content. photoIn both categories, some are worth consuming and some aren’t. I’m just as likely to go to youtube to seek out a commercial I like as I am to search for a music video. I read that PS4 post without realizing it was an ad but when I found it was (through the Dish) I wasn’t offended and I didn’t feel duped.

Part of the reason is that I don’t see Buzzfeed as a site that operates within the confines of traditional “journalism” and I don’t think they’ve ever tried to position themselves that way. I think Ben Smith’s Buzzfeed Politics sort of exists as a separate piece of Buzzfeed and should have stricter rules for sponsored content, because while the format is slightly different, that part of the site is clearly committed to real, traditional journalism.  The main Buzzfeed site is not, and that’s where the PS4 post came out.

Most of the content is those silly scroll down photo-essays, which are a great way to waste 3 minutes. I don’t expect those posts to follow the traditional rules of journalism, because they’re not traditional journalism.

Making money on the web means we’re seeing new models evolve. The Dish is one model, the Atlantic is another and Buzzfeed is too. Buzzfeed is just really good at making content for the ADD types like me who sometimes just want to read something entertaining for 3 minutes.

Another writes:

Ten years ago, I would have been incensed that Buzzfeed would have approached the advertisement /content line the way they have, but at that time, consumers were still expecting to pay for content. Now, I’m much more open to alternative forms of revenue generation because we, the consumer, have broken the pact.

Guess Which Buzzfeed Piece Is An Ad, Ctd

Derek Thompson, moderator of last week’s throwdown, sounds off:

I wish both sides conceded one final point to the other. I wish Ben conceded that BuzzFeed advertorials are intimate mimics of BuzzFeed articles — it’s not unreasonable to be confused once or twice — and it creates a tension with transparency. BuzzFeed is trying to make ads that are as charming and delightful as articles, but the more clearly they say WARNING THIS IS A WEB ADVERTISEMENT, the more likely people are to ignore their charming delights, because we have been taught to ignore all Web ads. I wish Andrew had paused in his fiery attack on advertorials and BuzzFeed to acknowledge something simple: Advertising does a good thing in the world. It pays great journalists to find and tell the truth. It’s a tradition worth preserving through both experimentation and severe transparency.

I thought I did say that at one point. Advertizing has long been an essential revenue source for journalism, and I am a big fan of it. The Dish has run a “Cool Ad Watch” for years, we’ve been paid in the past by media institutions that get a lot of money through ads, and I sure haven’t ruled out having them in the future, if a subscription-only model cannot get us enough revenue to roughly maintain the budget we had last year at the Beast.

My issue is with advertizing that is crafted in-house by the publication for clients and that is designed to look almost exactly like a regular editorial page and nowhere has the word “advertisement” on it to separate it from editorial copy. I notice that such ethical clarity is still not considered even at the Atlantic.

You can smell the bullshit a mile away. The very phrases – “sponsored content”, “native advertizing” – are as accurate as “enhanced interrogation.” It’s either an advertisement or your media company is producing content. Creating editorial content for advertizers for money, rather than for readers for its own sake, is a major shift in this industry. There is an obvious solution, as Derek suggests. It is to make the advertorials look more different from editorial than they now do and slap a clear word ADVERTISEMENT on top of it.

If that ethical labeling ruins your business model, it’s proof that your business model isn’t ethical. Right? Or am I missing something?

The Atlantic’s New “Sponsor Content” Guidelines

Jim Fallows helpfully unpacks the two quotes I put up yesterday and argues the full chronology of them does not imply some big internal disagreement at the magazine. I’m delighted to say that the Atlantic has devised a new post-Scientology policy with regard to “native advertizing”, “sponsor content,” “enhanced communication techniques”,  or whatever newspeak is used in creating confusing advertorials, designed to look like Atlantic articles, as a way to bring in more corporate income. Here it is, in full. Below is the critical section dealing with “Sponsor Content” or, as I think I’ll call them “enhanced advertorial techniques”:

SPONSOR CONTENT GUIDELINES

The guidelines in the following section shall apply to all Sponsor Content served by or appearing in the print and digital publications of The Atlantic, including ads purchased under AAAA/IAB Standard Terms and Conditions. (These are in addition to the general guidelines for advertising content that appear above, which apply to Sponsor Content as well.)

Sponsor Content is content created by or expressly on behalf of advertisers in conjunction with The Atlantic’s marketing team (“Atlantic Marketing”). The Atlantic allows Sponsor Content in two forms: (1) Content produced by Atlantic Marketing on behalf of its advertising partners and (2) Content produced by advertisers.

As with all advertising, Sponsor Content ultimately reflects the views and choices of the advertiser—not of The Atlantic or its editors. Accordingly, The Atlantic will prominently display the following disclaimer on all Sponsor Content: ‘SPONSOR CONTENT.’ The Atlantic will additionally include the following disclaimer on all Sponsor Content: ‘This article is written by or on behalf of our Sponsor and not by The Atlantic’s editorial staff.’ The Atlantic may additionally include, in certain areas and platforms, further explanation defining Sponsor Content to Atlantic readers. In addition, The Atlantic will ensure the treatment and design of Advertising and Sponsor Content is clearly differentiated from its editorial content.

The Atlantic does not require that Sponsor Content steer clear of controversy. Indeed, we expect that Sponsor Content, like our own editorial content, will sometimes address contested issues and will be written with a distinct point of view. That said, even with the caveat that Sponsor Content reflects the views of an advertiser and not of The Atlantic or its editors, The Atlantic will refuse publication of such content that, in its own judgment, would undermine the intellectual integrity, authority, and character of our enterprise.

As with all advertising, and consistent with the foregoing General Advertising Guidelines, The Atlantic may reject or remove any Sponsor Content at any time that contains false, deceptive, potentially misleading, or illegal content; is inconsistent with or may tend to bring disparagement, harm to reputation, or other damage to The Atlantic’s brand.

The Atlantic may in its sole discretion enable readers to comment on Sponsor Content on The Atlantic’s sites. If comment functionality is enabled on Sponsor Content, the sponsor will not have any role in moderating such comments. The only moderation of such comments will be performed by Atlantic employees who implement The Atlantic’s generally applicable Terms and Conditions — which prohibit spam, obscenity, hate speech, and similar content—elsewhere on the site.

I’m going to put this document out there before commenting. I have some issues with it – but it does seem at least to recognize a real problem, whereas Buzzfeed thinks that the corrupting bugs here are exciting new features. That may be because Buzzfeed understands itself more as an entertainment site – and its journalism and reporting are relatively new. But so far as I can tell, the dubious ethics of this exercize haven’t even seemed to cross their minds. “Andrew,” as one of my Buzzfeed hosts told me, “you have a lot to learn from us.” Obviously, I do. Consider me on a learning curve. And what I learn I intend to pass on to Dish readers, so you can also get a better idea of how to distinguish journalism from corporate propaganda online.

Quotes For The Day

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“In this case, we did not adequately work with the advertiser to create a content program that was in line with our brand … To be clear, our decision to pull the campaign should not be interpreted as passing judgment on the advertiser [the Church of Scientology] as an organization. Where I believe we erred was in the execution of the campaign … One important note for everyone: casting blame on any group or any individual is both unfair and simply not what we do at The Atlantic. And we most certainly should not speak to the press or use social media to attack our organization or our colleagues. We are a team that rises and falls together,” – Scott Havens, president of The Atlantic.

“That ad was a mistake in both concept and execution. I am saying all of this as a loyal and long-time Atlantic employee but as an observer of rather than participant in this recent drama. (That is, I had nothing to do with any part of this: the origin of the ad, the decision to pull it, or the drafting of this statement,)” – Jim Fallows.

I’ll have more to say later on the Buzzfeed/Atlantic model of “sponsored content” which blew up the room at Buzzfeed last night. But here’s something worth clarifying.

There’s no reason to believe that the editors and editorial writers at these sites are involved in the sponsored content of their respective joints. The editorial writers are not the sponsored content writers. Jim Fallows would no more have written the ad copy for the Church of Scientology than make a guest appearance on Here Comes Honey Boo-Boo. The Buzzfeed review of PlayStation 4 – though jumbled next to sponsored content for PlayStation 4 – was written in obvious good faith, as I noted last night. In other words, I am not accusing journalists at those institutions of anything unethical.

I am accusing those institutions of pushing as far up to the line between advertorial and editorial as can be even remotely ethically justified. I am accusing them of now hiring writers for two different purposes: writing journalism and writing ad copy. Before things got this desperate/opportunistic, the idea of a magazine hiring writers to craft their clients’ ads rather than, you know, do journalism, would have been unimaginable. A magazine was not an ad agency. But the Buzzfeed/Atlantic model is to be both a journalism site and an ad agency. You can see the reason for the excitement. We can now write purely for corporate clients and that will pay for us to do the rest. And so a CEO at Chevron gets a by-line at the magazine that once gave us Twain and Thoreau.

More to the point, when an ad page is designed not even to be seen much on the site’s homepage – where the color shading helps maintain the distinction between ads and edit – and is deliberately purposed to be viral, to pop up alone on your screen with “Buzzfeed” at the top of the page and a layout identical to Buzzfeed’s, the deliberate attempt to deceive readers is impossible to miss.

Am I thinking readers are too dumb to notice the by-line? Aren’t they more sophisticated than that? No and yes, they’re sophisticated, but not the way an industry insider is. I’m merely noting that – to the eternal mortification of writers and reporters – readers don’t really care or notice whose by-line it is in a magazine or newspaper or website.  They can easily overlook them. The name Buzzfeed is exponentially larger on any single advertorial than the actual sponsor’s. If you get a single post on Ten Coolest Things On The Planet, and it’s as good or as funny as anything else on Buzzfeed, and is on Buzzfeed, and looks just like everything else on Buzzfeed, be careful to note the small print where it tells you you are reading propaganda from Halls. That’s their fig leaf.

They need a bigger, clearer one. Because they’re pulling a Britney right now.

Guess Which Buzzfeed Piece Is An Ad, Ctd

A tour of tweets from last night’s debate:

Guess Which Buzzfeed Piece Is An Ad, Ctd

The debate at Buzzfeed really did become quite unusually passionate. I guess my taking on “native advertizing” and “sponsored content” in the belly of the company that has pioneered and thrived off them was a little provocative. But it was also huge fun and aired what I think we all could agree were salient issues that merit more discussion. I’ll be posting something tomorrow.

But meanwhile it behooves me to note that after before* my earlier post, Buzzfeed’s Joseph Bernstein followed up with a stringent review of the PlayStation4, which you can read here. It’s not an ad. It’s a piece of thoughtful criticism. Which is a distinction I think Buzzfeed should begin to emphasize more (ever thought of adding the simple word “Advertisement” atop an advertisement that deliberately looks like the rest of the product?), or risk the impression that their “new” form of advertizing is actually just the oldest profession in the world.

*Technically Bernstein’s review went up a mere five minutes before my post, according to the timestamps.