The Perfect Storm
We last spoke with Edelman‘s Steve Rubel way back in 2010. Today he’s back on the show and in a fairly new role at Edelman as their Chief Content Officer. Content, content, content. We’re hearing it everywhere, but what does it mean and especially, what does it mean for you as a brand marketer for your brand? For Steve, there is something fundamentally profound going on – a perfect storm similar to social media storm that happened between 2004-2006. Steve believes that in many ways this is even more disruptive and impacting the media environment over everything else.
So what is this content disruption? Steve sees 3 key trends happening simultaneously.
- There is more and more content available on mobile devices, both tablets and smart phones. It is scaling at the like of which we have never seen before. Banner ads were never extremely effective. I’ve read stats around .2%. Not great by any stretch of the imagination, but when you apply that to the entirety of the web, there are significant sales dollars there. The move into mobile content completely erodes efficacy of banner ads.
- Major changes are happening in the media business. Steve points to a large inventory of content, but only a limited demand for it. Consumers have less and less time and attention to consume content (your brand’s advertising). What we are left with is a tremendous amount of inventory that is not being monetized. Enter demand-sized platforms that are traded like any other commodity. Overall CPM cost is being driven down. The pressure this puts on media companies leaves them with limited options. Subscriptions models are hard to do. We have seen many paywall and premium content strategies fail. Media companies must offset these loses.
- Simultaneously there is a willingness and appetite by brands to tell their story their own way. Their success in social they now feel they have the confidence and infrastructure to do that. Enter Native Advertising. This is a reinvention of the advertorial or product placement for the web. Owned media is intersecting with paid media to allow brands to have significant real estate on some of the largest media platforms in the world.
More about Native Advertising
I came across the infographic from last year as I was writing this post. It gives a good overview of native advertising, so wanted to reshare it here. For the rest of Steve’s interview, scroll down below for the audio. The show is also available via iTunes and Stitcher Radio. Have a great weekend!
[Illustration by Hallie Bateman]