Native advertising is so effective that traditional banner ads and sidebar ads are no longer necessary, right?
Native advertising has actually fueled growth in other advertising formats. In that respect, it increases revenue for publishers from other types of advertisements.
If you’re not familiar with the concept of native advertising, it’s a type of inline advertising that looks very similar to content on the publisher’s site. It’s not uncommon for visitors to the site to think that an inline ad is actually content produced by the publisher. For that reason, some people think that native advertising is deceptive.
Keep in mind that native advertising doesn’t just exist on traditional news outlets and popular blogs. You can see native advertising frequently on social media. Facebook, for example, will run ads in a user’s news feed that appear to be a status update from one of the user’s friends.
Spending on social media native ads is expected to grow from $3.1 billion this year to $5 billion in 2017. It’s also expected to grow from 38.8% of total social media ad spending this year to 42.4% in 2017.
Native ads are also a spectacular option for mobile users. This is because there often isn’t enough real estate on a mobile device to show sidebar ads. In some cases, a responsive web layout will eliminate sidebars for mobile users, so the best way to reach mobile users with an ad is often with native advertising.
In the end, native ads present a higher probability of user engagement. Since that’s what every advertiser is looking for, they are a very attractive option.
It’s Not ‘Out With The Old’
As a result of all of this buzz about native advertising, some people have assumed that the older methods of advertising are effectively finished. However, native advertising can be used in conjunction with other advertising options to generate revenue.
Some publishers are using native ads to convince advertisers to accept a larger ad buy. In other words, the native ads are offered as the starting point for negotiations, rather than the only point.
Other options that are presented with native ads include video ads, display ads, and even live-event sponsorships.
“Native works very much like a cherry,” says Tessa Gould, director of native advertising and HuffPost Partner Studio at The Huffington Post Media Group. “While it might be the initial hook of the deal, the advertiser almost always ends up also buying other advertising products such as HuffPost Live, video, premium formats and sponsorships. We find that our products work very well in combination.”
Forbes has made a similar claims. That company says that 30% of its advertising revenue comes from packages that include the company’s Brand Voice sponsored posts.
The more familiar style of advertising is not finished yet. Savvy publishers have ensured that there is still a market for them by selling them with the more powerful, native ads. These ad packages also present the advertiser with an opportunity to build brand awareness with multiple channels.