Understanding Native Ads and Their Importance

Native ads are a form of paid media that blend seamlessly with the content of the platform on which they appear. Unlike traditional ads that disrupt the user experience, native ads are designed to look and feel like part of the content, providing a non-intrusive experience. This makes them highly effective in reaching users who may not be actively searching for a product or engaging with social media.

Today, a quarter of all online time is spent browsing the open web, with many users never touching a social app or using Google for product discovery. This is where native ads shine. They allow brands to reach high-quality audiences, like Bloomberg or CNN readers, who have significant purchasing power and might otherwise remain untargeted.

Native Ads as Part of a Three-Pronged Marketing Approach

Consider a successful American football team employing a "three-headed monster" strategy, with different types of running backs to tackle various situations. Similarly, marketers need to incorporate search, social, and native ads into their strategy to be truly effective. Each of these channels plays a unique role: search is your bruiser, social is your agile player, and native is your consistent performer. Without all three, you are likely missing a crucial piece of the puzzle.

Complementing Search and Social with Native Ads

A recent study by Global Web Index found that 61% of consumer time online is spent on the open web, compared to just 39% on walled gardens like Facebook or Google. Moreover, while search and social platforms have seen significant increases in cost-per-click (CPC) and cost-per-thousand-impressions (CPM) this year (20% and 12%, respectively), native ads on the open web remain less competitive and more cost-effective. Native platforms can help brands break through the “glass ceiling” that limits growth on search and social channels, allowing for further expansion without a complete overhaul of their marketing strategy.

Real-World Success Stories with Native Ads

Driving Sales and Building Brands

A U.S.-based e-commerce brand recently found that for every sale generated through native advertising, 1.5 to 2 additional sales could be attributed indirectly to those native clicks. This translated into a return on ad spend (ROAS) of over 4.5, demonstrating the power of native ads in driving branded search and overall organic growth.

Higher Average Order Value

A cosmetics brand found that the average order value through native ads was 35% higher than what they achieved on Facebook. While it required creativity and adaptation to the environment, the results spoke for themselves, proving that a tailored approach to native advertising can yield significant returns.

Expanding Audience Reach

A CBD advertiser, initially focused on search and social, expanded to native ads and saw a significant increase in revenue and customer base. This is a common story: many brands that think they’ve hit a growth wall find new opportunities by incorporating native ads into their strategy.

The Keys to Success in Native Advertising

To succeed with native ads, brands need to approach the strategy with an open mind and willingness to adapt. What works on one platform won't necessarily work on another. It’s crucial to understand that native ads require a different mindset – one that is “native” to the environment of each platform.

Successful native advertising involves dynamic testing and constant iteration. Brands should aim to test multiple angles, creative strategies, and pre-landing pages to see what resonates most with their audience. Patience is key – native campaigns can take time to build, but the results can be substantial. For instance, a company might need to test two dozen different content approaches per product, per month, across various geos and verticals to find the winning formula.

Leveraging Native Advertising Tools and Partnerships

One of the most underrated aspects of native advertising is the ability to leverage platforms' tools, resources, and account managers. Unlike some other digital channels like Facebook or Google, native platforms provide direct access to real people who can help optimize campaigns and improve ROI. Brands that use these resources effectively often see a significant increase in performance.

The Future of Native Advertising

As consumer expectations for personalization and relevance grow, the future of native ads will likely be shaped by advancements in AI. The formats, placements, and sizes of ads may change, but the need for highly personalized content that aligns with user preferences will remain. As AI tools are increasingly integrated into native advertising platforms, brands have the opportunity to leverage these advancements to drive even better results!

Conclusion

Native advertising presents a powerful opportunity for brands to reach a broader audience, especially those on the open web who might not be engaging with traditional social or search channels. With the right strategy, testing, and optimization, native ads can deliver exceptional ROI and help brands overcome growth plateaus. The insights from this panel of industry leaders highlight the importance of integrating native ads into a comprehensive digital marketing strategy, the potential of native to complement other advertising channels, and the future direction of this dynamic field. As the landscape evolves, brands that stay ahead of the curve will be the ones that truly succeed.

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