In this article you will:

Learn how native advertising works by

• Find out the advantages of native advertising which is an 85 billion a year industry in 2022. 
• Find out the disadvantages of native advertising and how you can avoid making you audience feel 'duped'. 
• Learn how to start your own native advertising campaign and which formats will work best for your business. 

Native advertising is a relative newcomer to the digital advertising world.  Native ads are ads that optimise your content to look exactly like the website or article you are advertising on.  For instance, if you are adding native content in the form of an ad to a Buzzfeed listicle (article in the form of a numbered list) your ad will need to look very similar to Buzzfeed’s content and structure. It has been increasing in popularity for a few years. 

Promoted search results or sponsored social media posts are some of the most popular forms of native advertising. No doubt you will have seen these ads on your travels on the Web. It is widely considered a less obtrusive way of marketing your products to your audience. Many companies are investing a lot of time and money into native advertising. It is estimated that in 2020 native ad spending is going to reach $85 billion. So it’s safe to say that it's not going away anytime soon. Let's look at how native advertising works and the drawbacks and benefits of employing this strategy. 

Source: Buzzfeed Shopping  

How does Native Advertising work?

Like many other forms of digital marketing, advertisers are charged for the performance of the ad usually on a Cost per Click (CPC) basis. It’s a great solution for companies that would like to monetise their site with complementary ads that will help their overall aesthetic. The best websites to advertise on are sites that have a large amount of reach and audiences. Native ads as a concept are all about matching the content that is already on the website as the goal is usually brand awareness. 

It also is borrowing on the brand awareness of the website you are advertising on. You can also advertise natively on search engines, social media as well as the previously mentioned websites. 

Source: Google

It is a mutually beneficial partnership between the advertisers and the publishers. The audience also benefits from not seeing aggressive advertising tactics constantly and will gain knowledge by reading your advertisement. In fact some companies that have native advertisements will work with the advertiser to adhere to the same format that their website or social media platform already has. They provide templates, layout features and other items to make sure the aesthetic isn’t ruined. 

Are there any downsides to Native Advertising?

Let’s look at some of the downsides of Native Marketing

1. They are time and labor intensive to create

     It's best not to sugar coat it… it is a lot of effort and time to create a native ad. The text must match the publisher's tone, aesthetics and other components.  You will need your images and writing to be of very high quality much of the time. That requires talent and expertise. Other issues are things such as the publisher may knock back the ad if the ad isn’t up the standard they require. It’s a long process. 

2. Your audience may not like feeling tricked... 

Possibly your audience may react angrily to your advertisement if they feel they are misled. If this happens the risk of negative association can occur. Sometimes your native ad might be a little TOO good at blending into the platform. 

You may want to make sure you clearly label your content as sponsored, to avoid this...Source: Simpsons Fandom.

However, many ad providers require disclaimers or a line of text explaining that your content is sponsored or not officially from their company and that can go a long way to mitigating negative associations. 

Source: Sydney Morning Herald

An example of how labelling the content as ‘partners’ so not to trick the audience.

The Interactive Advertising Bureau (IAB) a not for profit agency in Australia has created a Native Advertising Handbook for 2020. Most countries will have their own versions such as the US that has the Federal Trade Commission (FTC) which has the document Native Advertising: A Guide for Business. Many countries are adapting their trade policies for digital marketing so that consumers and advertisers act in a fair manner. 

3. Ad Blocking software may block some of your ads. However, it’s not all bad news. Native advertisements aren't always blocked  and many industries have adopted native advertising as a way around ad blocking software. Native ads are not always picked up by the ad blocking software as an ad, hence the adoption. Especially now as tech giants like Apple include ad blocking or the ability to stop tracking behaviour on their devices. 

What are the benefits of Native Advertising?

1. Custom Content is a major advantage of Native Advertising. You can learn new ways of displaying and creating content. Audiences also perceive the content to be more trustworthy as it’s in a format they know and recognise. You can also customise the content to the platform you are advertising to the point where you can capitalise on the great reputation of the platform. But remember....context is key. For example advertising golf holidays in a fashion magazine, will not result in clicks as it doesn’t work within the context. This is also seen as annoying to viewers.

2. Content is more engaging and as a result you get higher clicks. It is paramount that your content is engaging, easy to read and informative. If your ad is dismissed as clickbait your ad will not engage readers and in fact repel them. Your native ads content needs to be on the same level as the website you are advertising for. Treating it like a banner ad or pop up will result in an unsuccessful campaign. You will need to invest in more visually appealing formats for your native ads. According to Insight Freakout in 2020 the most successful native ads are videos, interactive formats where users can search for an item within the ad. This requires seriously up to date know-how. A service provider would be the best option. 

Source: Insight Freakout

Recruit experienced writers and graphic designers for your ads. Tell a story with your product.  You won’t be sorry when your click rate is higher and your sales start to go up.  

3. Higher CTR rates are the norm for native ads. This is clearly due to the value of the ads to the consumer in terms of information, storytelling and visual aids. They are easier to understand. In fact many younger millennials and Gen Z consumers are more likely to buy a product from a native ad as a result according to Outbrain.com. Not only are they more likely to buy, they are more likely to trust the ad. 

Source: AdMixer

How do I get started with native advertising?

Let's discuss the steps involved in getting started in native advertising. 

1. Set clear goals for your campaign.

Do you want to build brand awareness? Create more sales conversions or leads? Would you like more email subscribers? Get specific about what you want and need from your campaign. 

2. Define your audience 

Now you have chosen your aims, think about your product and who it appeals to. This is very important as your ad will attempt to appeal to this demographic visually and with content. Different demographics will require different approaches. 

3. Choose your publishers carefully

Make sure you are advertising on platforms and websites that have a strong, solid reputation that you can advertise with. Native advertising is more of a partnership than other forms of advertising.  

Source: Pexels

4. Identify popular or valuable content

Identify what content would be of interest and use to consumers. Would a story on the latest findings on sun protection help your ecommerce store that specialises in headwear?  This is important to consider as your content is king. Nothing is more valuable. 

5. Invest in your writing and visual storytelling assets

As we just mentioned your writing is key but don't forget about your visual assets. Video, high quality images and other strategies are also crucial to your success. Research current trends and how you can incorporate these into your campaign.

6. Decide on your advertising budget

You’ve developed your aims, audience and content strategy now it's time to think about how much you want to spend on your native ad campaigns. Identify what is your ideal CPC and worst case CPC. Then base it on your worst case scenario to give your budget a bit of leeway. As you run more campaigns you will get a better idea of how to budget for native campaigns. Keep in mind that a successful campaign can run for a long while, about 6 months. It’s not a sprint, it's a marathon with native advertising. 

7. Upload and stay up to date with performance.  

No matter if you are flying solo or are deciding to run your campaign through a native marketing agency, staying abreast of the situation is important. If you are pursuing this yourself, check your campaigns everyday or every alternate day. Ask for weekly status reports from your agency. This way you will learn what works best for your brand and contributes to success. 

If you have decided native advertising is just the thing for your brand firstly:

1. Decide your aims and what you want to achieve

2. Do some research on your audience

3. Then decide on which publishers you would like to enter into a partnership. 

After this spring into action with a marketing agency or a third party that can help facilitate your relationship. SavvySME has many resources such as writers, graphic designers and advertising agencies that can help you.