What is Native Advertising? Definition, Examples, Benefits

What Is Native Advertising?

Native advertising is a type of paid advertising in which the ad matches the design and behavior of the platform where they appear. By blending into their environment, a native ad seems like another piece of editorial content, making them less disruptive than traditional ad formats and more likely to be noticed and clicked on.

Native ads can appear in various locations on publisher sites, in promoted search results, or as sponsored posts on social media channels like Facebook or TikTok.

How Does Native Advertising Work?

Native advertising, or native marketing, works similarly to other forms of digital advertising, creating a mutually beneficial relationship between publishers and advertisers. Publishers looking to monetize their digital assets sell ad space. Advertisers interested in connecting with and selling products to a publisher’s dedicated audience can purchase that ad space.

Native ad placements are usually sold in one of two ways: either through programmatic ad platforms or via direct deals. Each offers unique benefits; advertisers and publishers may prefer using one method or a combination of both depending on their industry, target audience, campaign objectives, and strategies.

No matter how ads are bought and sold, both publishers and advertisers benefit from native ads. Publishers earn money for impressions (when users see an ad) or when the site visitor clicks on the ad. At the same time, advertisers are able to expose their brand or products to an engaged audience to boost brand awareness, generate leads or increase sales.

Native Ad Formats

Native ads take on various formats and can be placed on a website or app in different locations. Each format has advantages and can be used strategically to engage and encourage audiences to take desired actions.

Popular formats include:

In-Feed Ads

These ads seamlessly integrate into a website or app’s content feed for a non-disruptive experience. Users experience them as the next natural piece of content, making them highly effective for all advertiser goals, including brand awareness, lead generation, and sales.

Search & Promoted Listings

These ads appear prominently within search engine results or on relevant websites. The format increases visibility and click-through rates, so it’s an ideal option for advertisers looking to drive conversions and sales.

Content Recommendations

These ads appear within a widget at the end of an article, often with a disclaimer such as “Related Articles” or “You Might Also Like.” Since the suggested native ad content is related to the article the user just read, they are likely to be hungry for more and engage with the ad.

Native Video Advertising

This form of native advertising integrates video content into the surrounding content and user experience. As many consumers enjoy watching videos, the format is an excellent way to capture attention and share your brand story in a visual form.

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The Benefits of Native Advertising

Native advertising has emerged as one of the most popular forms of advertising. Why? Because native ads help brands overcome many of the challenges inherent in more traditional formats and because consumers actually like them. Here are three data-backed key benefits:

Beat Ad Blockers, Banner Blindness & Fatigue

With 50% of internet users turning on ad blockers and 86% having banner blindness, conventional ads are being ignored at record rates, and ad budgets are wasted. Native ads, on the other hand, blend seamlessly into surrounding content and appear more like editorial content, making them less likely to be viewed as ads and, consequently, more likely to be noticed and clicked.

People Prefer Relevant Ads

Over 50% of consumers are annoyed by irrelevant ads. However, when native ads use contextual targeting, it ensures that the ads delivered are contextually relevant to the content being consumed, creating a sense of personalization that feels authentic.

Native Ads Build Brand Trust

Consumer trust is at an all-time low; 77% of US consumers don’t trust companies, and the number is even higher in other countries. But, thanks to ‘The News Trust Halo,’ 84% of consumers maintained or increased their trust in brands that advertised on their favorite news and publisher sites.

Native Advertising Examples

Native ads can deliver exceptional results but don’t just take our word for it. Here’s how businesses like yours have transformed their advertising strategies and achieved unparalleled success.

When global gaming giant Ubisoft wanted to create a buzz about a new game release, the MGID team stepped in and created rich media interactive ads. In just one month, the campaign earned 3.3 million impressions, 634 thousand interactions, and an engagement rate of 136.5%.

VOH, a Vietnam-based publisher, was struggling to acquire and keep users on-site longer. By implementing our internal recirculation solution and leveraging our Contextual Intelligence, the publisher achieved its goals, increasing traffic by 134% and boosting time on site and pages read per view.

How to Create Native Ads

Creating compelling native ads is an art that requires a strategic approach and attention to detail to ensure the campaign resonates with your target audience and yields the desired results. You should also consider your target platform, as you’ll need different strategies for mobile and web campaigns.

All of the metadata elements in your native ad need to work together, including your campaign headline, description text, thumbnail image, and CTA button. And, of course, those need to complement the post-click landing page experience users have.

Here are a few tips to optimize each element:

How Much Does Native Advertising Cost?

The cost of running campaigns depends on several factors that collectively influence how much you need to invest to reach your goals without overspending so you can maximize your ROI.

Your brand’s niche matters; if your target audience is very specific or narrow, reaching them will generally cost more. Equally important is where you want your campaigns to be shown.

Reputable high-traffic websites and popular mobile apps naturally command a higher price compared to lesser in-demand digital properties. Your audience’s geolocation and competition for that audience’s attention will also contribute to pricing dynamics. Another factor that determines overall ad prices is seasonality, so advertising during the winter holidays when there is steep competition will increase costs.

You’ll also need to choose the most advantageous pricing model for your brand and campaign goals – either CPM (Cost Per Mille) or CPC (Cost Per Click). CPM operates on a cost-per-thousand impressions basis, making it ideal for brand awareness campaigns where visibility matters. If your goal is to drive a specific action, such as a conversion or purchase, choose the CPC model so you only pay when users click on your ad.

How to Choose the Right Native Ad Platform

Selecting the right native ad platform is critical as each platform offers unique features and has its own strengths. Since your decision can significantly impact the success of your native ad campaigns’ success, choosing a platform that aligns with your goals and target audience is essential. Here’s what to look for when evaluating native ad platforms:

Quality of the Network

Always opt for a platform that has a diverse network of reputable publishers. A network with established authority and a wide range of content categories ensures your ads are placed in contexts that resonate with your audience.

Advanced Tracking Capabilities

The platform must offer robust tracking and analytics tools. Precise data and insights into ad performance, audience engagement, and conversion rates empower you to refine your strategy, optimize your campaigns, and maximize your ad spend.

Scale and Reach

The broader the platform’s reach, the more potential exposure your ads can garner. Make sure the platform can accommodate your desired audience size now and when you’re ready to scale your campaigns.

Compatibility

Seamless integration with various platforms and formats is crucial. Ensure the platform supports different native ad formats, devices, and operating systems to maximize your campaign’s reach.

Wrapping Up: What Do We Offer Advertisers and Publishers?

At MGID, we’re proud to count hundreds of high-quality, well-known advertisers and publishers as our partners. They turn to us time and again, relying on our expertise, sophisticated proprietary technology, and AI-based recommendation algorithms. Our advanced platform provides a complete set of tools and data-backed insights so campaigns can easily be optimized to reach performance goals while keeping costs manageable.

MGID for Advertisers

We offer a range of high-performing native ad formats and extensive reach, giving advertisers access to any segment of our 900 million unique monthly users spread over 25,000 publisher assets. We support more than 70 languages, enabling you to easily connect with consumers all over the world. You can rest assured knowing we guarantee 100% brand safety and provide 24/7 support to ensure your success.

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MGID for Publishers

Publishers that work with MGID retain 100% control over their audience, monetization strategies, and ad placement settings. Our direct and programmatic demand delivers a 100% fill rate, helping you maximize profits, while our internal and external content recirculation feature increases growth, engagement, loyalty, and revenue.

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If you want to leverage the power of ads that blend in and achieve results that stand out, it’s time to partner with us!

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