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What is Native Advertising?

5 min to read

Native advertising is a form of paid advertising presented with the same or similar structures and functions as that of the platform it is displayed. The purpose is to blend in as part of the whole in a less intrusive way to the viewer but still engaging while providing value or being relevant to the content it is inserted.

The native advertising format enables them to integrate with the content they are inserted, decreasing the chances for the audience to perceive their advertising characteristic. Because the approach is subtle, the communication with the intended audience is made in a direct manner and less prone to external distractions.

Key Takeaways:
  • Native advertising blends into the format and purpose of the medium in which it is displayed
  • The cost associated with native strategies can vary depending on many factors, such as the platform, the audience, and the ad’s nature
  • A variety of measures can be taken to determine the impact of native advertising
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What is Native Advertising?

Further aspects to consider:

  • Examples: Native ads opt for the placement of subtle messaging, as well as a less intrusive approach to minimize the chances of being noted as overly promotional. They are commonly displayed in the form of sponsored posts by social media users, articles suggested on news sites, or even sponsored links in search engine results.

  • Native Ads x Banners: Data indicates that native ad formats exhibit a tendency to outperform banner ads in terms of engagement levels, suggesting their value as a compelling advertising option.

  • Key to success: Production of tailored, valuable, and high-end content is key to the effectiveness of native advertising.
Pro Tip:
When marketing native advertising, always make it clear that the materials will be branded as advertising.

What are the types of native advertising?

Native advertising varies in form as they change to match certain contexts or platforms, such as:

  • In-feed ads: These in-feed ads appear in between regular posts among the sequence of social media or content feeds.

  • Search ads: Located at the beginning of search engine results pages usually labeled in the form of a sponsored post.

  • Recommended content widgets: This feature recommends more content or articles about similar subjects from the website.

  • Promoted listings: They appear naturally alongside product listings within established e-commerce platforms.
Deep Dive: 
Widen your horizons: challenge yourself to try out various native ad formats on your target audiences on each of these channels.

Who benefits from native ads?

Native advertising most commonly have an impact on the multiple parties involved in the online ecosystem.

  • Advertisers: A less intrusive advertising approach might result in a better response and higher engagement from the target audience.

  • Publishers: They are able to make a profit by providing space for commercial messages, which most of their audience may not find irritating.

  • Consumers: To avoid negative customer experiences caused by interruptions, utilize native ads to deliver valuable content without disrupting the user experience.

How much does native advertising cost?

Investments in native advertising are highly recommended but be attentive as the cost is not static and it may vary. The three factors listed below influence the costs of ad buying:

  • Platform: Cost structures can be different for various platforms (e.g., social networks, search engines, content recommendation widgets).

  • Geo targeting: The more advanced the clarification of the targeting (e.g., demographics, interests, behavior), the more investment it may require.

  • Type: The costs also vary between the different native ad formats (in-feed ads, sponsored posts, promoted lists and so on).

Reach out to ad platforms or specialists for pricing.

Pro Tip:
• Regarding the budget allocation, test in the beginning what works for your business and, after the results consolidate your marketing strategy, then invest more.

• When analyzing the costs of native advertising, it’s important to take into account the lifetime value of a customer. Considering the cost-benefit tradeoff, it may be worthwhile to consider client retention at a higher price point.

What are native advertising growth areas?

Native advertising is changing, and some aspects are more dynamic than the others. These more dynamic areas include: 

  • Mobile Native: With the surge in the usage of smartphones and tablets, native advertising has gained significant traction on these devices. The advertisers are reshaping their native ads to be part of the mobile applications and websites.

  • Video Native: Video has proven to be an engaging mode of communication and native video ads which are embedded into other video content are also growing in demand. These functionalities can be utilized by advertisers to communicate their narratives and connect dynamically with their target audience.  

  • Programmatic Native: Programmatic advertising, which is characterized by the use of technology in the purchase and placement of advertisements, is also growing in the native space. The feature is related to an increase in targeting efficiency for native ad campaigns, but further testing is needed to confirm the effect.

How do you measure ROI on native advertising?

In order to further measure the ROI for the native advertising, it is important to monitor other financial metrics as well. Four key metrics that should be tracked include:

  • Engagement Metrics: the number of clicks, number of shares, time spent on the ad.

  • Conversion Tracking: the number of sign-ups, purchases.

  • Brand Lift Studies: the change in awareness of the brand.

  • A/B Testing: the trialing with ad versions.
Pro Tip: 
Utilize the built-in analytics of your website builder or use simple tools like Google Analytics to keep track of the number of visitors that each native ad attracts. This will help you figure out which ads are working best and where you should focus your efforts. Other methods include brand lift studies and surveys. 

What are some examples of successful native advertising campaigns?

Several large companies have conducted native advertising campaigns. 

These are two real-life cases of native ads: 

Conclusion

Effective native advertising approaches can help maximize brand recognition and possibly shape consumers’ purchase behavior as a part of an overall user experience. However, one of the most critical factors influencing such a strategy is the quality of the content and its relevance to the audience being targeted. With the fierce competition and growth in the field of digital, mobile, video, and programmatic native advertising will be of utmost importance to marketers in the coming years. Transparency and an intuitive user experience could be crucial aspects of effective native advertising, potentially contributing to achieving marketing goals and fostering more positive customer relationships.

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