Native Advertising: Definition and Strategies for Business Promotion

In the digital marketing sphere, advertising has undergone significant changes. Traditional advertising, such as banners and TV commercials, is still in use, but its effectiveness varies depending on different factors. Users have become more experienced in recognizing advertisements, and they often simply ignore them.

In response to these changes, a new type of advertising has emerged - native advertising. It seamlessly integrates into the content on which it is placed, making it more positively received by users.

In this article, we will explore what native advertising is, how it works, and the advantages it offers.

What is Native Advertising

Have you ever opened an article on a website and halfway realized that you are being sold something? If so, you have encountered native advertising.

Native advertising is a form of advertising that seamlessly integrates into the content on which it is placed. It doesn't look like advertising, so it doesn't provoke annoyance or resentment from users.

Due to its format, it can be challenging to recognize. However, there are several signs that indicate you are indeed encountering native advertising:

1. Absence of the "ad" label. Native advertising often lacks a clear indication that it is a commercial proposition. It may be labeled as "partner content," "recommended content," or simply "by the author."

2. Atypical content. Native advertising frequently includes content that is typical for the source where it is placed. For example, on a news website, an article promoting a new product may appear.

3. Lack of a call to action. Native advertising often does not include an explicit call to action, such as "buy now" or "subscribe to our newsletter."

If you see content that matches one or several of these signs, there is a big chance that it is indeed advertising material.

Some media owners fear that because readers may not distinguish advertising from regular content, it could lead to the publisher gaining a reputation as deliberately misleading the audience.

But don't worry, consumer protection agencies — the Federal Trade Commission (FTC) and the Interactive Advertising Bureau (IAB )— are working to ensure that native advertising is transparent and understandable for everyone.

Native Advertising Formats

Advertisers have a wide range of native advertising formats to choose from to achieve their goals.

For example, for brands looking to tell a story about their product or service, clickable video ads are an ideal option.

Online stores can utilize native carousel ads to showcase their products.

And for program publishers, in-app native ads are embedded into mobile applications to encourage users to download their apps.

The Most Popular Formats of Native Advertising

Programmatic Native Advertising

Programmatic native advertising is an excellent way to scale native advertising to reach a target audience. It operates through programmatic auctions where advertisers compete for space for their native ads.

When a user visits a site, the Supply-Side Platform (SSP) sends a bid request on behalf of the publisher. The Demand-Side Platform (DSP) responds with metadata indicators and makes a bid on behalf of the advertiser.

Based on the metadata, the SSP selects the winning bid and instantly customizes the native ad using a design template to seamlessly fit into the website or app. This entire process takes place in milliseconds.

This format of native advertising allows advertisers to display their ads to users who are most likely to be interested in them. This significantly enhances advertising effectiveness and increases return on investment (ROI).

Native Video

Native video advertising is a way to combine the marketing power of video with the advantages of native advertising. Users perceive it as part of their video experience, and it can be used at all stages of the sales funnel.

Native video advertising captures attention and interest by offering relevant and engaging content in a natural and non-intrusive way. Modern video formats, such as Click-to-play, require user permission to view the video, avoiding interruptions.

This means that site visitors are aware of and confirm their intention to watch the video, expecting that commercial video content may appear during the viewing experience.

Native Video can be an effective tool for achieving various goals, including:

1. Attracting new customers;
2. Increasing engagement with existing customers;
3. Boosting sales.

Here are a few examples of how native video advertising can be used at different stages of the sales funnel:

• Awareness: Native Video can help attract a new audience and enhance Brand Awareness metrics. For instance, you can create a video that tells the story of your company or how your product or service has helped solve a customer's problem.

• Engagement: Native video advertising can engage new users and spark interest in your product or service. For example, you can create a video showcasing your product in action or narrating a customer success story related to their interaction with your product.

• Action: Native Video encourages users to take active steps, such as visiting your website, making a purchase, or submitting a donation. For instance, you can create a video that includes a special offer, incentive, or discount to prompt specific actions.

Advantages of Native Ads

Why do advertisers prefer native advertising? Because it's effective. Here are a few advantages of this format that marketers in various industries benefit from:

1. More effective than display advertising.

Consumers view native advertising 53% more often than display ads. Moreover, native advertising not only increases purchase intent by 18%, but it also provides visual engagement, sometimes surpassing original editorial content.

In particular, Fusify's Native Video achieves high engagement metrics such as CTR, VTR, and Viewability. Our Native video platform displays ads on popular information platforms in Ukraine, with a monthly reach of over 80% and 2 billion ad impressions.

Advertisers can target their specific audience based on geographic, demographic, and audience characteristics. Native Video allows for high reach and frequency, increasing brand awareness and the likelihood of successful conversions.

2. Resists ad fatigue.

Ad fatigue (or ad blindness) occurs when the audience becomes saturated with a constant display of advertising materials. Native advertising, seamlessly integrated into editorial content, helps reduce this fatigue effect as it looks organic and mimics the publisher's content. As long as the content remains interesting, native advertising successfully holds the audience's attention.

3. Ad response that ensures relevance.

Consumers are aware that native advertising is a form of advertising, but it does not cause a negative response from them. Research from Stanford University has shown that consumers understand that they are seeing an advertisement, but the native nature significantly influences their behavior as buyers.

How Native Advertising Works

The effectiveness of a native campaign depends on the set objectives, such as stimulating purchases, downloading e-books, requesting demos, or watching videos.

The implementation process of native advertising involves creating original and high-quality content tailored to the target audience in a specific industry. This content is then placed online on websites, blogs, or landing pages.

Behind this process, a cutting-edge native advertising platform or network operates, collaborating with websites worldwide, such as Fusify. It provides marketers the opportunity to use editorial pages for displaying native ads to the online audience.

It's worth noting that the essence of native advertising lies in its simple principle of interaction: the audience engages with content that interests them and actively clicks on it.

The Cost of Native Advertising

Native advertising is available to brands and businesses of any size. Even small companies can use it to make a presence on leading global media.

While display advertising typically has a lower cost per click than native advertising, the latter is more effective as it generates greater user interest and interaction. This means advertisers achieve a higher overall ROAS with the native format.

Native advertising is effective for several reasons. Firstly, it seamlessly integrates into the content of the hosting platform, avoiding user distraction and negative reactions. Secondly, native advertising is always targeted at a specific audience, allowing advertisers to almost perfectly reach users likely interested in their product or service.

Moreover, the increasing effectiveness of native advertising has led to its rapid popularity. In 2021, $85 billion was spent on native advertising worldwide, and by 2028, the market size is projected to reach $190 billion.

While the future is uncertain, many marketers secure their bets by allocating budgets to explore the advantages and strengths of both display and native advertising in their online strategies.