What You Need to Know About Native Advertising

Let’s talk about a massive advertising opportunity that has been flying under the radar for a lot of advertisers. It’s not that advertisers have ignored this opportunity, it’s more that they don’t really understand it. The opportunity we’re talking about is native advertising – a misunderstood format with serious potential for brands.

In 2021, U.S. advertisers will spend over $57 billion on native ads, which represents almost two-thirds of all digital display spending. In other words, it’s a pretty big deal. Still, even in the marketing and advertising worlds, not everyone is 100 percent sure what native advertising even means or what types of ads fall under its umbrella.

Some of that uncertainty lies in the nomenclature. When someone says “TV commercial” or “paid search ad” it’s fairly simple to figure out what they mean. But “native advertising” isn’t as intuitive. So, let’s take some time to peel back the layers of this [native advertising] onion and help marketers like you understand how to incorporate native advertising into your Q4 2021 and 2022 media strategy.

What is native advertising?

Let’s start with a softball question: what is native advertising? Here’s a simple definition from our friends at eMarketer:

“Digital display ads that follow the form, feel and function of the content of the media on which they appear, be it a webpage or an app.”

The key to native advertising is its non-disruptive nature. Ads don’t really look like ads; they integrate so smoothly with the page content and design they feel natural or “native.”

What do native ads look like?

Native ads come in several formats and on a variety of channels and platforms. Here’s a look at some of the more popular native ad formats.

In-feed ads

In-feed ads are paid social media posts that display in users’ feeds along with organic posts, usually with the denotation “Promoted” near the top of the post.

Native advertising - In-feed ads

Sponsored content

Sponsored content includes ads for online articles, blog posts and other content pieces that show up in the sponsored content section on publisher sites (typically below an article from that publisher).

Native advertising - Sponsored content

In-app reward videos

In-app reward videos appear in mobile apps and reward users for watching (e.g., Pandora videos that offer extended periods of uninterrupted listening after users watch them).

In app reward videos

How can I use native ads in my digital media strategy?

For creative advertisers, native ads offer plenty of opportunities to drive results throughout the consumer buying journey. The key is focusing on your target audiences’ needs, demonstrating how you provide value to those audiences and building purposeful campaigns. After you lock in those three components, it’s a lot easier to decide which formats to use.

Focusing on your target audience

Before you start building your campaign, make sure you have a clear idea of the types of consumers you’re trying to reach. Conduct in-depth research into your target audience to figure out their needs and wants, what media channels they frequent and how they prefer to interact with brands.

Demonstrating your value

Once you understand your audiences, identify how your products and services address their needs. Your ad messaging should center on that value proposition in a way that resonates with specific consumers.

Building campaigns with a purpose

Ask yourself “what specific results do I want native advertising campaigns to drive for my brand?” Make sure your team understands what you’re trying to accomplish and the metrics you plan to measure success against.

What does the future have in store for native advertising?

2021 is already a huge year for native advertising. Despite slower growth in 2020 due to the pandemic, native ad spending grew by over two billion dollars in 2020 and has increased by over 22 billion since 2018.

U.S. native digital display ad spending

 

Mobile channels, programmatic platforms and social networks are the main drivers behind this increase. And, since there’s a lot of overlap between the channels, there are plenty of opportunities to run campaigns that incorporate all three.

Native ad formats like video and sponsored articles are becoming more popular as well, which has taken a chunk out of social media’s share of the ad spend. But social ads will still account for around three-quarters of native ad spend in the foreseeable future.

Percentage of native ad spending

 

There’s also a lot of growth happening in native advertising. Ad tech companies are building out the infrastructure necessary to handle large-scale programmatic native advertising campaigns that have:

  • The ability to test multiple creative messages
  • More sophisticated audience targeting
  • Better tracking and measuring capabilities

For brands, this means the already warm waters of native advertising should heat up even more with increased engagement and higher conversions. If your brand is interested in diving in, contact Mindstream Media Group to learn how our native advertising solutions can help Fast-Forward Your Business.

Editor’s note:  This post was originally published in March 2019 and has been updated for freshness and accuracy.

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The agency landscape has changed dramatically as a result of numerous challenges across the marketplace. Learn more about how we’re filling the gap for agency partners that have found themselves with limited media and research capabilities. In this episode of Fast-Forward the Conversation, VP of Business Development Fabio Ramos and Planning Strategist Misty Castellanos join President Zac Keeney to discuss the value Mindstream can provide not only to agencies but to their clients as well.

 

 


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Marketing Insights to Navigate the Coronavirus Pandemic – Weekly Recap of News You Can Use

Week of April 20, 2020

 

Greetings from the home office.

As the COVID-19 chaos continues to create challenges for businesses across the map, there are beginning to be a few bright spots. Consumer confidence and spending have seen a slight increase thanks to stimulus checks and the anticipation of stay-at-home orders being lifted.

But, a marketer’s work is never done. Brands continue to find new ways to pivot their products and services to remain relevant, reallocate budgets and adjust marketing strategies and media buys. Those that remain steadfast with timely solutions and maintain an empathetic connection with their customers are more likely to be remembered and reap the long-term benefit of increased customer loyalty. To help you stay current and aid in your strategy development, below is this week’s roundup of insightful content.

Content Roundup

How has media consumption changed in face of COVID-19? Here’s a look at what people are doing during this period of isolation at home. Media consumption has vastly increased, and not surprisingly, it differs by generation. People are relying on their devices to “inform and distract,” which is creating an increasing opportunity for marketers to engage this captive audience. Learn more.

Local news is spiking, the top five video streaming services are up and radio and digital audio have maintained their listener base. A Nielsen expert discusses these points plus the effect on revenue for brands cutting their media spend during the pandemic. Learn more.

Pessimism and stories of economic gloom have dominated in recent weeks, but there are now increasingly hopeful signs for marketers including positive consumer sentiment, an uptick in online spending and increased marketing activity designed to propel brands through the rebound. Learn more.

Source:  CivicScience

As businesses are gearing up for a post-pandemic world, they must consider five areas that will shape their strategy: position, plan, perspective, projects and preparedness. This article from Harvard Business Review presents many questions to help guide brands’ planning initiatives. Learn more.

We all know content is critical for SEO success, but how can your brand stand out in a sea of “coronacontent”? What type of content should you be creating now and how do you prepare for the post-coronavirus future? There’s no simple answer, but here’s what digital marketing experts had to say in an interview with Greg Sterling. Learn more.

Although it’s a tumultuous period, now is the perfect time for brands to learn from consumers’ new purchasing habits and online behaviors and refine their customer experience strategies accordingly. Learn more.

Brands are trying to determine what changes they need to make now and moving toward the future to stay relevant, stay in business and ultimately grow despite this crisis. Here are four ways companies are pivoting their offerings, budgets and strategies due to COVID-19. Learn more.


We hope you’ve found our compilation insightful. Stay safe and if you haven’t already, subscribe to our blog to get next week’s roundup delivered straight to your inbox.

A Marketer’s Mindset in Guiding Clients Through the Current Pandemic

As marketers, we are tasked with guiding clients, brands, franchisees and even other marketers on media strategy, tactics and most recently, how to best navigate through an unprecedented crisis that changes by the minute.

It’s easy and somewhat comforting to follow the same news sources’ guidance and recommendations, but especially now with so many affected by this pandemic all over the globe, there are SO MANY sources of information – whether about the virus itself, how it’s affecting sales, tips for working from home, how to practice better self-care in stressful times…the list goes on.

Being a marketer is grounded knowledge gained from education and work experience, but another component is curiosity. It’s about gathering from multiple sources, researching messaging from different brands on the same topic, how to find that coveted solution to reach your target audience, standing out in a sea of sameness.

With this article, we’ve channeled our curiosity into finding the most helpful, practical content to better help you stay informed and provide guidance for your brand.

Should the News Disrupt Your Content Calendar? We (as an agency) have adapted our own content plan, as well as those of our clients, in the last few weeks. Business-as-usual content efforts can be seen as tone-deaf and possibly insensitive. But how does one decide to what extent to change an already-perfected content calendar? Learn more.

Is your business closed, on a limited schedule, offering different services due to the virus (restaurant takeout/delivery) or been affected somehow by the pandemic? Make sure your Google My Business listing has the most up-to-date information to help consumers. Learn more. Google is adding a feature to GMB listings that allows business owners to easily mark whether they are ‘temporarily closed’ – and will show this information in Search and Maps. Learn more.

Source:  Google

It’s better for businesses to be proactive rather than reactive in the age of social distancing. Learn more.

Agility and thoughtfulness in marketing strategy, at its best: How brands are acting quickly and taking extra precautions to avoid coronavirus insensitivities. Learn more.

To help ease the burden on small businesses, Facebook has created a $100 million grant program to assist 30,000 SMBs in 30 nations. In addition to grants, Facebook is developing a range of other options to provide further assistance. Learn more.

Source:  Facebook


We hope you’ve found our compilation insightful. Stay safe and if you haven’t already, subscribe to our blog to get next week’s roundup delivered straight to your inbox.