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NEON CANDI NeonCandi H1 2014 Native Advertiser and Agency Survey - Participants 137 Release Date October 2014 1) Are your clients requesting more Native Advertising? YES 91% NO O 9% 2) Have you or do you intend to buy Native Advertising across a digital screen in 2014? NO 24% YES 76% 3) Do you expect to spend more on Native in 2015? 464% 36% SPEND MORE SPEND LESS. 4) Which two characteristics of Native Advertising do your clients find the most valuable? Zz NEW Ability to engage an ad-weary audience and contribution to performance campaign were selected by more than 40% Suitability to introduce a new Product or Brand being chosen by 22% 5) 88% of respondents thought that Native represented 20% or more of their total display budget £ £ ] £ 0% 20% 40% 60% 80% 100% 6) Applicants ranked Native Segments in the following order of appeal MOST A In-Feed Desktop B In-Feed Social C In-Feed Mobile D Advertorials Content Amplification and Content Recommendation Engines Native Video Advertising LEAST 7) 71% Agreed Brand Research above availability of premium publishers then price point were main drivers for unlocking more client budget. 71% agreed 30% 8) of Agency RFP's in H1 2014 included Native Advertising. 65% 9) More than 65% of respondents rated Publisher Direct or Specialist Native Business as their main source of Native Advertising above Mobile or Social Media networks. 2 10) Over 80% of respondents rated Site Selection and Positioning as the main targeting currently being deployed. 80%C Selection and Positioning Native Knowledge IAB reported H1 2014 Native Advertising spend in the UK to be £216m. Native Advertising is the Ultimate Brand Retargeting Tool, Content is King Content Recommendation Engines do not create environments, which favour Brand Integrity Native is often categorised with Display Advertising, but this truly diminishes its obvious Branding Ability as confirmed in Nielson study against interruptive video advertising where Native video produced 40X Brand Lift In Iprospects Native Advertising Study May 2014 " Native Advertising a Powerful Performance Driver" they summarise" Native produces incremental reach when bought in parallel with downage social but also compliments even youthful targeted campaigns by elevating their brand credibility. Native advertising delivers both soft and hard benefits. It stretches a brand's content investment In all studies on Quality and Trust, Native Display scored a superior score to FB, Twitter, YouTube. The Social Media heavyweights won hands down on Entertainment. What's your business? via additional distribution and exposure as well as an opportunity to repurpose content. Since a native ad is tagged in the same way as a display as, brands also have the ability to measure performance across a variety of metrics. On average the return on spend (ROAS) for a Native Ad is three times that for a display Ad. Credits; Thank you to Iprospect, Universal Media, OMD, 3Nine, MediaCom, Amazon, TBG, MediaAgencyGroup, 7Stars, MECGlobal, Mindshare, Carat, AMS, TotalMedia, SMG, Havas, British Airways, Virgin, BodyShop. Volvo, Barclays, Vodafone, IAB and everyone that participated in our survey or contributed Native Facts. APPEAL