WHAT IT IS, WHAT IT ISN'T, AND DOES IT WORK?

CONSUMER INTOLERANCECONSUMER INTOLERANCEOF ADVERTISINGOF ADVERTISING

More and more people are opting out or ignoring ads completely

4 out of 5 consumers have left a website or closed their browser when faced with a pop-up or autoplay ad

Millennials in particular are skilled at ignoring ads because they’ve grown up being bombarded by them

Rise of ad blockers – plugins or browser extensions that prevent ads from appearing on web pagesOver half of millennials either have an ad blocker installed or plan to install one in the next 6 months

Advertisers must find a balance between user experience, making their brand memorable, and bringing in revenue

Native advertising mirrors the layout, functionality, target audience, and voiceof the rest of the site’s content

On BuzzFeed it might appear in the form of a listicle, but on other newsplatforms it could mean a full-length article or interview

Traditional digital advertising (most commonly banner and pop-up ads) tends to interrupt the user’s experience, whereas native is meant to blend in to its surroundings

The FTC requires any native advertising to be labeled with a word like “Sponsored,” “Advertisement,” “Featured Post,” etc. to prevent deception

Native advertising doesn’t come without controversySome see it as a sneaky way of advertising, masking an ad as typical web content – though others appreciate its less interruptive natureGoogle indexes native ads from editorial sites as regular content in searchresults, so it might take a consumer longer to realize they’re reading an ad

AND HOW DOES IT DIFFER FROM TRADITIONAL ADS?WHAT’S NATIVE ADVERTISING? WHAT’S NATIVE ADVERTISING?

AND HOW DOES IT DIFFER FROM TRADITIONAL ADS?

1. IN-FEED ADS 1. IN-FEED ADS

Look like the rest of the page’s content, typically listed as a “sponsored post”

Maintains the typical listicle style of BuzzFeed, and clearly indicates that it’s a promoted post

BuzzFeed post sponsored by TGI Fridays

2. PAID SEARCH ADS 2. PAID SEARCH ADS

Ads featured above organic search results and laid out the same as those below it, just with a disclosure that it’s a paid ad

Maintains the structure of a Google search result, with a yellow “Ad” icon and an average customer rating for Zappos

Havianas flip flops ad by Zappos

3. RECOMMENDATIONWIDGETS

3. RECOMMENDATIONWIDGETS

Ads incorporated into the page’s content, often including the terminology “You may also like” or “Recommended for you,” that suggests related content a visitor might be interested in

Featured in the left sidebar on the homepageRecommended stories from CNN

4. PROMOTED LISTINGS 4. PROMOTED LISTINGS

Paid product/service listings

At the top of each product category page, there are three paid listings with small “Ad” text in the left corner of the image

Etsy Promoted Products

WITH NATIVE ELEMENTS 5. IN-AD (IAB STANDARD)5. IN-AD (IAB STANDARD)

WITH NATIVE ELEMENTS

Similar to banner ads, but the content is contextually relevant to the rest of the page

The Interactive Advertising Bureau (IAB) is an organization that establishes online advertising industry standards for clear disclosures and consumer protection

Allrecipes ad by KnorrAd links to pasta recipes on Knorr’s site

6. CUSTOM6. CUSTOMAny other ads that follow native advertising principles, but don’t fall under the previous categories

Several companies have created their own custom playlists on Pandora with advertising dedicated to their brand

Pandora’s largest competitor, Spotify, is taking note of this valuable advertising opportunity, and recently announced plans to offercustom branded stations in the near future

Taco Bell’s “Feed The Beat” station on Pandora

DOES NATIVE ADVERTISING

In a study, consumers looked at native ads 52% more often than banner ads

Brands are viewed more positively and accurately through native advertising

THE NEW YORK TIMES, BUZZFEED, THE ONION, FAST COMPANY, AND FORBES

DOES IT ACTUALLY WORK?DOES IT ACTUALLY WORK?

CONVERSION RATES ARE UP TO

HIGHER60%

WOULD SHARE A NATIVE AD WITH A FRIEND/FAMILY MEMBEROF CONSUMERS32%

SOME PUBLISHERS USING NATIVE ADS:

SOURCESSOURCESSOURCES

HUBSPOThttp://research.hubspot.com/reports/native-advertising-rises-as-consumers-opt-out

INTERACTIVE ADVERTISING BUREAU (IAB)http://www.iab.com/wp-content/uploads/2015/06/IAB-Native-Advertising-Playbook2.pdf

MAKEUSEOFhttp://www.makeuseof.com/tag/know-native-advertising-looks-like/

RELEVANCEhttp://relevance.com/the-what-why-and-how-of-native-advertising/

SEARCH ENGINE WATCHhttps://searchenginewatch.com/sew/opinion/2441887/does-native-advertising-really-work

SHARETHROUGHhttp://www.sharethrough.com/resources/native-ads-vs-display-ads/

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