What is it?
Native advertising is a new way to advertise online. It matches the content and the form of the media on which it appears. For example, a sponsored article in between « normal » articles on a blog can be considered as native advertising. The main goal is to create a better customer experience by displaying soft ads that will more likely be clicked on. However, paid advertising has to be clearly identified as such, in order to allow users to distinguish between editorial and paid content.
(source : https://monetizepros.com/)
There are six categories of ads defined by the IAB s that can be considered as native advertising:
- In Feed Ad Units: ads that fit to the website’s normal content(Ex: Facebook, Twitter).
- Search Ads: SEA, the ads above the organic search results (Ex: Google AdWords, Bing).
- Recommendation Widgets: Widgets that are separated from the content of the website, introduced by “You might like”, “Recommended for you”,etc. (Ex: almost every news website).
- Promoted Listings: used by e-commerce websites, these ads are sponsored products presented in the same way as normal products. (Ex: Amazon, Google Shopping)
- In-Ad (IAB Standard): Classical display ads that are related to the website’s main topics.
- Custom/Can’t be Contained: ads that do not fit in with the other categories. (Ex: Spotify)
These Native ads have three main advantages:
– Spread more: it gives you the opportunity to write a longer text and to give more information about your product or service than the classical formats.
– Be more visible without disturbing the user: your ad is displayed at the heart of the website’s content so it will be more likely to catch the user’s eyes.
– Engage better, for longer: by being spread along with content that interests the consumer, a stronger link with the brand or the product is created.
Where does it come from?
Native advertising appeared late 2012, when advertisers and media agencies were wondering if classical online advertising like banners were still efficient.
Some studies showed that people were paying less attention to this kind of ads, and as a consequence the click rate was decreasing. It became necessary to offer more relevant content in a less aggressive form. The results are impressive: according to a study carried by IPG Media Lab, consumers are looking at natives ads 52% more frequently than simple banner ads.
What brings the future for Native Advertising?
The Interactive Advertising Bureau says that Native Advertising Revenue represented $4.7 billions in 2013 in the US, and their forecast for 2018 is $21 billions: a forecasted increase of 346%!
In June 2015, Doubleclick announced the availability of Native Ads on their platform, but also of “Programmatic Guaranteed”, which allows premium inventory to be transacted programmatically at pre-negotiated rates.
“Programmatic Guaranteed” will be focused on premium inventory, including native formats like promoted tweets and skippable Youtube ads. The future of native advertising is closely linked to Programmatic Buying: the ads will be shown only to people who might be interested in the product, in a non-disruptive way.
The trend in online display advertising isn’t quantity (massive spread) anymore but quality (personalization). Ads are to look less commercial and to be more focused on an enhanced user experience.