What is native advertising?

Native advertising is paid media designed to match the content of a media source. An example of mobile native advertising would be paid video content on the YouTube app. This media is designed to match the visual design and function of natural content, appearing in your feed of recommended videos. Despite being paid content, it fits into the browsing experience, maintaining visual and functional consistency.

Native advertising offers a non-intrusive, engaging way to connect with users. Here are its key benefits:

• High engagement: Even though users are aware the content is paid for, native advertising gets higher engagement than traditional advertising methods.
• Improved user retention: These ads boost user retention rates, which are three times higher than other ad formats,
• Higher CTR: Native ads deliver up to 8.8 times higher click-through rates (CTR) than display ads, leading to more conversions.
• Better ROI: With higher engagement and conversion rates, native ads deliver a better return on investment (ROI).
• Ad blocker resistance: Many native ads can bypass ad blockers, reaching a larger audience.
• Increased brand awareness: Native ads can help establish a strong brand presence.
• Preferred format:: 70% of people say they prefer learning about products through content, making native ads more acceptable.
• Creative flexibility: It allows for tailored, platform-specific content, enhancing effectiveness.

Native advertising operates on a supply and demand model, connecting publishers and advertisers via ad networks. While publishers seek to monetize their websites or apps by using their audience and reach, advertisers aim to increase brand awareness, generate leads, and achieve other marketing objectives by purchasing ad spaces on these platforms. Ad networks serve as the bridge between publishers and advertisers.

Native ads are carefully targeted based on user demographics, interests, and browsing behavior to ensure relevance. They offer various levels of user interaction to engage users, such as clicking for more information, interacting with ad elements, watching videos, or performing specific actions like purchases or app installs.

The success of native advertising, especially mobile native ads, relies on creating mobile-specific ad creatives. This involves crafting concise text for mobile users, emphasizing device-specific features, and using backgrounds that align with the user's environment. Incorporating swipeable elements and interactive features further boosts user engagement. Creative editing techniques are essential to produce unique and captivating visuals with a clear focus.

Spotting native advertising can be challenging as these ads blend seamlessly with the surrounding content. However, certain cues can help identify native ads. First, look for disclosure labels. Ethical native advertising includes clear labels such as "sponsored," "promoted," or "ad" within thumbnails, banners, or headers to inform users they are viewing  paid content. These labels are often required by platforms for transparency.

Next, check the design elements. While native ads are designed to be similar to the regular content, subtle differences in font, colors, or logos can suggest sponsorship. Content quality can also be a giveaway. If the content appears noticeably well-produced and of higher quality compared to regular platform content, it might be a native ad. Some native ads include a brand's logo or other branding elements.

Also, watch for content that seems out of place or unrelated to the platform's typical theme could be a native ad. Advertisers strive for relevance, but sometimes the promotional nature stands out. Lastly, pay attention to language and tone as native ads may use promotional language, calls to action (CTA), or marketing messages that differ from regular content.

Native advertising comes in various formats. Here are the most common types and examples:

In-feed product listings

In-feed product listings are featured within the content feed of a website or app, frequently on e-commerce platforms. They're styled to resemble organically listed products, incorporating elements like product images, brief descriptions, prices, and user reviews. Users can engage with these listings similarly to regular products, with options to purchase, add to a cart, like, or add to a wishlist.

Sponsored listings

Sponsored ads appear in specific promoted sections like the top of search results or in dedicated areas on e-commerce platforms such as Amazon. These ads are clearly labeled as promoted or sponsored, typically with tags like "sponsored" or "ad". However, they imitate the layout and style of organic listings. Like in-feed product listings, users can interact with these ads, but they are strategically positioned for maximum visibility.

In-feed content

These ads appear within the content feed of websites, social media platforms, and apps. They are designed to match the site or app design, including fonts, graphics, and other elements. Users can interact with these in-feed ads in the same way they interact with organic content. In-feed content aims to promote products or services in a manner that seamlessly integrates into the user's browsing experience without causing disruption.

Sponsored or branded content

Sponsored or branded content is typically published as articles, videos, or other formats within a publisher's editorial space. This content matches the editorial style and tone of the publisher and is generally labeled as "sponsored" or "branded". It is created either in collaboration with or by the advertiser, aiming to provide valuable information while subtly promoting the brand. The primary goal of this format is to build brand awareness and trust by offering informative or entertaining content that aligns with the publisher's usual content.

While native advertising offers many benefits, it also presents some challenges.

Measuring performance: Metrics like ROI and impact are harder to quantify for native ads compared to traditional formats. Native ad platforms can provide tracking and analysis, however advanced tools and methods are often necessary to accurately measure effectiveness.

Maintaining ethical standards: Native ads can be perceived as deceptive due to their seamless integration with regular content. Advertisers must be transparent by clearly labeling ads with tags like "sponsored" or "promoted" to meet guidelines.

Balancing interests of advertisers and publishers: Advertisers aim to stand out and drive conversions, while publishers want to maintain content integrity and user experience. Collaboration is key to creating content that aligns with the publisher's style and provides value to the audience.

Mobile measurement partners (MMPs) like Adjust offer vital tools for measuring and optimizing the effectiveness of native ads. Adjust's Measure solution provides accurate attribution , enabling precise measurement of user interactions. This information helps marketers pinpoint which native ads (among others) generate the most conversions, allowing for quick real-time adjustments to budget allocation across campaigns and channels.

With features like cohort analysis and user-level insights, marketers can monitor user behavior over time and evaluate the long-term effects of their native ads. Datascape consolidates all data sources into a user-friendly interface that visualizes growth, cohort performance,  SKAdNetwork (SKAN) data, and much more.

Curious how Adjust’s advanced measurement and analytics can power your app marketing? Talk to an expert today by requesting a demo.