Yahoo7 prepares to launch programmatic native ad marketplace

By (incomplete) | 8 September 2014

Yahoo7 is about to launch a native ad marketplace as it bids to emulate Yahoo!'s success with the format in the US, particularly within mobile.

Commercial director Paul Sigaloff told AdNews that the native ad marketplace was now in beta phase with a biddable marketplace set to launch next month.

He hopes that 30-50 brands will be on board at that point.

Native ads differ from native content in that they are adverts placed within the content feed. They are labelled ads and can be “thrown together on the fly” from the most basic assets, including text and pictures, or more sophisticated assets, such as video. What makes them native is served in context based on log-in or frequency data.

Native content requires more craft and editorial input.

In the US, Yahoo! Makes about a fifth of all ad revenue from native ads. Sigaloff said that while banner ads remained the biggest driver of mobile revenue in Australia, that would probably change over time.

“Mobile is going gangbusters in Australia and that is primarily a display-driven market. To not play in that space would be foolish economically, so we definitely want to play in display. But we philosophically agree in principle that native is a really good experience and ultimately, over time, that’s the route we will be going down.”

As "the market sets the price", Sigaloff would not be drawn on the price premium for native ads, but said that CPMs in the US were “healthy”.

It is likely that by mid-next year, Yahoo7 will roll out a self-serve model for native ads.

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