Ampush COO Reveals ‘What’s Next’ in Native Ads at Goldman Sachs 2014 Investor Lunch
March 13, 2014
Ampush co-founder and COO, Nick Shah, took the podium at a recent Goldman Sachs Investor Lunch to discuss trends in the Facebook, Twitter, and broader advertising technology ecosystems from the past year and looking ahead to 2014.
The conversation revealed that mobile and desktop ad prices are shifting, native ecosystem advertisers are primarily focused on ROI, and budget growth for Facebook and other native platforms remains robust. We feature Nick’s four most interesting takeaways from the event:
Mobile Demand is Shifting Ad Prices
Increased demand paired with a finite inventory of Facebook mobile ads has advertisers fiercely competing for a share of the pot, driving up mobile prices. The rise in mobile demand has increased CPM (cost per thousand impressions), CPC (cost per click), and CPA (cost per action) across the board. Ampush, for one, saw mobile spend jump from 30 percent to 70 percent of the company’s total ad spend between the second half of 2012 and the second half of 2013.
Native Ad ROI is Now Apparent
Facebook no longer must justify the value of advertising on the platform, as more advertisers report increasing ROI for their native ad campaigns. Facebook campaigns run through the AMP 2.0 platform saw strong ROI driven by solid conversion rates for new customer acquisition and online sales in Q4.
The lift in ROI can largely be attributed to Facebook’s improved targeting options, new highly effective ad types, enhanced bid types and delivery algorithms and improved measurement techniques.
Facebook Ad Budget Growth is Likely
We predict companies will continue to increase spend on native ads in 2014. Marketers are finding it easier to justify scaling ad spend when performance can be directly tied to the bottom line. Ampush sees brand spending increasing by 30-50% yoy and direct response (DR) spend increasing over 200%. This budget growth will stem from advertisers’ expansion into new, more effective Facebook ad types, such as autoplay video ads and Page Post ads, and shifting of dollars away from display and, incrementally, from search. We also see clients moving to a truly performance-driven strategy revolving around ROAS as advertisers develop more effective forms of measurement.
Twitter’s Next in Native
It’s still early, but Ampush is seeing early signs of success with Twitter for brands and direct response advertisers. Native formats on LinkedIn and to a lesser degree Pinterest are also taking form through 2014.