For those who are unfamiliar, native ads are a type of paid advertising, where the ad is complementary of the user experience on the site or platform on which it displays. If you’ve ever seen sponsored content while scrolling through your Facebook Newsfeed – that’s just one example of a native ad.
According to a 2014 eMarketer study, native advertising spend is expected to increase from $3.7 billion in 2015 to $5 billion in 2017. While still developing perceptions about mobile marketing and advertising effectiveness are to blame for these shifts in budget, these future projections should not be taken lightly in the present.
One reason for the growing emphasis on native advertising is the ability to more easily engage users without disrupting their experience. Statistically speaking, this is especially important for mobile platform considerations. Over 2014, native ads were found to achieve a significantly higher click through rate and lower cost per click on mobile compared to desktop – with 25% of users actually looking at native ads with the possible intention of sharing them with friends and family. Compared to the traditional standard of banner display ads, native ads have far greater potential for improved ROA (Ampush).
When further compared to banners, benefits of native advertising on mobile also include more accurate targeting, which can translate to greater brand awareness in more relevant customers and an observably higher purchasing intent. Native ads are also the ideal choice for brands wishing to advertise through leading publishing sites such as Forbes, Wall Street Journal, and New York Times, with sponsored content generating an estimated 2% more views than actual editorial (Sharethrough).
Many advertising platforms and mobile distribution networks now allow for native advertising, due to the success rates companies have experienced through social media and sharing sites such as Facebook, Twitter, AOL and Yahoo. With the continued explosion of global smartphone and tablet usage, native advertising will undoubtedly continue to assert its new standard over mobile marketing strategy. For advertisers, marketers, and brands, awareness of this should begin translating to competitive involvement in native ad practices.