Native advertising refers to paid ads on a platform that match the look, feel and function of the surrounding content. Unlike banner ads which clearly stand out, native ads blend into their environment. The key is to provide valuable information to readers, not just promote a product.
Native ads first started gaining popularity in the early 2010s as brands sought more effective ways to reach consumers. Early adopters like The New York Times, Buzzfeed, and Sharethrough paved the way with their in-feed native ad offerings. Brands were drawn to native ads’ better click-through rates, viewability and engagement compared to display ads. In turn, publishers welcomed a new meaningful revenue stream.
According to recent data, native ads generate 52% higher recall and 32% higher purchase intent than display ads. With such stellar results, it’s no wonder native ads are expected to make up over 63% of display ad spend by 2025.
Around the same time native advertising was taking off, programmatic ad buying was staging its own revolution. Programmatic advertising automates media buying using algorithms and real-time data. Instead of manually negotiating placements, programmatic instantly matches ads to available inventory based on targeting parameters.
Global programmatic ad spend has absolutely exploded in recent years, from $10.5 billion USD in 2013 to over $100 billion USD estimated in 2023. Programmatic delivers speed, efficiency and precision that brands crave. Over 80% of global digital display ads are now purchased programmatically.
It didn’t take long for programmatic capabilities to be applied to native advertising. Now, instead of manually placing native ads, marketers can use programmatic platforms to run native campaigns at unprecedented scale. Native ads can be optimized in real-time based on budgets, audience targeting, and performance data.
Brands leveraging programmatic native ads praise the increased efficiency and lower cost per acquisition compared to manual native ads. Platforms like StackAdapt, TripleLift and Sharethrough offer self-serve interfaces, making programmatic native ads accessible to brands of all sizes.
Programmatic native brings the strengths of both formats together - valuable ad experiences combined with automation for better performance. Spend on programmatic native advertising is forecasted to reach $85 billion USD by 2025. Clearly this hybrid model is resonating with modern marketers.
While programmatic native advertising offers many advantages, brands shouldn’t just set it and forget it. Follow these tips to ensure your native ads are engaging, non-invasive and delivering:
- Tailor ad content specifically to each publisher - resist the one-size-fits all approach.
- Ensure native ad visuals and copy match the surrounding content.
- Write compelling headlines that provide value, don’t just promote your brand.
- Use strategic audience targeting to deliver native ads to your best customers.
- Monitor performance and continuously optimize targeting, creatives and placements.
- Include clear call-to-actions inviting readers to engage further.
Programmatic native advertising is still in its early days. As artificial intelligence, machine learning and data collection improve, native ads will become even more seamlessly integrated and personalized. Look for native ads to mirror the one-to-one experience of social media platforms in the future.
While creative automation will handle the distribution, brands still need to focus on producing quality native content. Algorithms can’t replace the human understanding needed to create engaging stories that resonate with target audiences. Brands that embrace programmatic native ads while staying laser focused on their customers will see amazing results.
The programmatic native wave is here. Will you ride it to marketing success or be left behind? Reach out today to discuss how Oake Marketing can put you on the path to native advertising excellence.
Supporting sources:
- Native Advertising Done Right: Best Practices For ...
- Types of native advertising in 2024
- Native Advertising: A Foolproof Guide You Need in 2024
- Programmatic Vs Display Network Advertising | Outbrain.com
- Programmatic Advertising Explained [2024 Dummy Edition]
- Integrating Native Advertising into Your Marketing Mix
- Programmatic Creative Best Practices
- Programmatic Native Advertising Platform Market Insights
- Native advertising: Top 4 tips from expert agencies doing it ...
- What is native advertising? The ultimate guide - Taplink
