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Native advertising will bridge search and display 'like never before' says Yahoo head of search

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By Jessica Davies, News Editor

July 19, 2013 | 2 min read

Native advertising will fully bridge search and display "like never before", according to Yahoo’s head of search Andy Jones.

Speaking at the Internet Advertising Bureau’s (IAB) Search conference in London this morning, Jones hailed native advertising as the future of digital advertising, with Yahoo already seeing click-through-rates (CTRs) for native ads on its own platform driving seven times the CTR of regular display ads.

Search and display are already complementary, with display ads having adopted the auction-based model in the real-time bidding environment – a model that has traditionally been the “stomping ground” for paid search.

Yet Jones believes the arrival of native advertising is pushing the two mediums closer together.

He said: “We will need to adapt our search best practices to suit this new world of native advertising. It hits consumers at a different stage in the purchase funnel."

Jones added that to ensure the native ad experience does not jar with consumers, but naturally becomes part of the editorial context, search marketers must think more like editors than marketers.

“[Native ads] should fit into the content – think imagery – not just words. Don’t use logos, ads or product shots – use a compelling, click-driving image."

Yahoo has introduced In-Stream native ads across its platform in the US and is already seeing higher CTRs as a result, according to Jones.

“In-Stream ads drive 7 times higher CTRs than regular display ads, are biddable and better targeted."

Meanwhile Tumblr, which Yahoo bought earlier this year for $1.1bn, has an existing audience already predisposed to the native ad format because they are a younger audience. Yahoo has started running native ads that Jones said “suits the very dynamic blogging environment”.

Native advertising is the web ad method in which advertisers provide valuable content in the context of a user’s experience, in a way designed to be non-disruptive for the user.

Last month Yahoo's newly appointed senior director and head of international marketing Robert Bridge told The Drum the company is in the midst of repositioning itself, focusing heavily on music and mobile products, to attract a younger audience.

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