IZEA, a company that connects social media content creators with brands, recently rolled out a cloud-based "Sponsorship Marketplace" to help advertisers automate content distribution and measurement. IZEA's network is comprised of over 50,000 registered advertisers and agencies. Some of the company's agency partners include Mindshare, Starcom, Initiative, Ogilvy and Hill Holliday.
Founder and CEO Ted Murphy spoke with AdExchanger about the state of native and social advertising, and the potential pitfalls that native approaches could present.
ADEXCHANGER: What are agencies and brands doing with paid social and native advertising?
TED MURPHY: We’re seeing a big move toward short-form content. Whether it’s status updates or short Vine videos, photos or Instagram videos, art of that is because there are more content creators out there and it’s easier to produce (short-form content) rather than writing long posts or making in-depth videos.
I think there’s a challenge that agencies and brands are dealing with. On one side, there’s the display network that can offer a huge amount of tonnage and really achieve ad rates, but at the end of the day the engagement is very small and there’s usually zero pass-along value. I think what brands are starting to recognize is that they’ll likely be paying higher rates to do any sort of sponsored content or native advertising, but if it is done in the right way they have the ability to take advantage of the sharability of the content created.