Native ads have become prevalent in the online space in the last one year. We have begun to notice it on all popular sites where ad is a chief source of revenue. Native Ads are present on popular social media and forum sites in the form of Sponsored Stories on Facebook, Promoted Tweets on Twitter, Video Ads on YouTube, StumbleUpon’s Paid Discovery and Sponsored in Quora. We noticed Google initiating it quite a few years back by showing ads within publisher content. The advertisers ensure that the ad is mentioned as “Sponsored”. Google displays the text “Ads from Google”, so as not to misguide the users/consumers, and not displaying those words is a violation of the Google policy. Offline media like newspapers have had advertorials for decades now. (Advertorials are paid placements attempting to look like an article).
Wikipedia’s definition – Native advertising is an online advertising method in which the advertiser is providing advertisements with the same user experience as the publisher’s content. The word native is used to refer to the formatting of the advertising materials to make them appear more consistent with other media in the recipient’s universe.
Ads specifically on online or mobile media are known to be intrusive to the user experience and ‘Native ad’ is a sincere effort made by the app developer/publisher with the support of the advertiser to make ads least intrusive.
Most of the ad campaigns run by advertisers are CPC campaigns. Advertisers are looking for some action on the ads in order to pay the publishers. Clicks are the least engaging ad formats as against other engagements like downloading and installing apps, playing on an animated ad, viewing a video for a couple of seconds and so on. The click through rates (CTRs) on banner ads have dropped to about 0.1%. Advertisers are getting way fewer clicks and publishers’ revenues have dipped.
This has happened because consumers have learnt to consume free content by ignoring ads and the typical ad slots. This is called ‘banner-blindness’. Banner ads are now standardized, so they look the same on every single site. It makes it easy to ignore ads even if they are relevant and well-targeted.
What’s special about Native ads?
- They look like one among the publisher’s content and they fit right in to it. Since users are actively reading the content, they are more likely to read the ad.
- The look-and-feel required for a native ad is different across sites or apps, so users are unable to learn to ignore ads.
These result in Native ads having higher CTRs. There is tremendous excitement in the digital publishing world around native advertising and a lot of monies are being spent on research to blend ads with the digital content (which are now called as Native ads).
Here are some research results on native ads from Forbes:
- Users are 25% more likely to look at a native ad than they were at a banner, and look at the ads 53% more frequently.
- They check them out 4.1 times per session on average, versus 2.7% for banners.
- Participants in a research have also said they were considerably more likely to share a native ad with others (32% versus 19%) and showed 18% more purchase intent after viewing them.
Users have adapted to these kinds of ads as well. Popular sites like FB and Twitter have native ads and the sites have millions of users using these non-intrusive ads.
From the perspective of the advertisers, accidental clicks are reduced – Genuine clicks are received by users who read the content and then engage with the ad. Advertisers don’t have to spend creative efforts to develop ads. It’s the publishers who customize the ads according to their content.
Adiquity as an ad network platform has simplified this task of creating native ads. Publishers can choose the look and feel of the ad being displayed on their site.
We are working on a beta release for this solution. If you are an app developer or publisher interested in getting started with Native ads on your app or site, kindly send an email to email@example.com with subject “Interested in Native Ads”. We would love to get you started. Stay connected with us and read our newsletters. We have more app developer monetization solutions coming your way.