April 22, 2015
Smart advertisers are quickly shifting to mobile ads. In fact, this trend increased to 54 percent in 2014 and will grow more this year — primarily because advertisers are realizing the weaker responses they receive on standard banner ads. People do not interact the same with a mobile phone as they do with the desktop.
The click-through rates of traditional display ads have fallen at a very fast rate. People are not only avoiding them, they are also being replaced by something new in the market. That something new is native ads — a type of advertising that is forecast to reach $5 billion in the next few years.
The rise and fall of banner ads
In the early ’90s, during the dot com boom, the CTRs were charging just pennies per click. Every banner ad company was rolling in the dough. Banner ads were getting between 50-70 percent CTR and the effective CPMs were also very high.
But with the Internet booming, the CTR rates plummeted. Advertisers started getting less response with fewer clicks and it became hard for the publishers to earn money. Most of the consumers feel banner-blindness because all the banner ads are standardized and the consumer is ignoring ads even when the banner is relevant. The lack of impact of traditional advertising is the reason for the emergence of native ads.
What are Native Ads?
Native advertising is paid-for-content that appears on the editorial section of the publisher’s site or on a social networking site. Some examples of native ads include promoted ads on search engine, tweets on Twitter, sponsored stories on Facebook and videos on YouTube.
Native advertising on social media
There are both different strategies for native ads and different ways to add content on social networks.
- Sponsored stories
- News feeds ads
- Promoted pins
- Promoted tweets
- Sponsored tweets
- Sponsored updates
Why native ads are powerful on mobile
Native ads are getting powerful CTRs, similar to editorial content — and sometimes it is even higher than normal.
The reason for the success of native ads is they completely blend with the mobile apps, blogs or news. Another reason is the headlines of the native ads are perfectly and carefully designed and are very compelling. The average CTR has been much higher than traditional banner ads.
Benefits of native ads
Advantages from which advertisers can benefit:
- They provide great information to users;
- Native advertising provides a great option for sharing content;
- The ads work best in social media;
- They are able to capture the attention of users;
- Better engagement with users;
- They provide real benefits to advertisers and the marketers;
- They generate awareness;
Reasons for the success of native ads
There are a number of reasons behind the success of native ads. Some of the reasons are discussed below.
- A better user experience
This is one of the main reasons for the ultimate success of native ads. Users don’t want to see popups on their mobile screens and banner ads clutter the condensed screen of the mobile device.
Native ads are designed to integrate into the user screen, resulting in a less invasive experience, including the elimination of unwanted prompts on the screen. Native ads are intended to make the user understand the new brands in an amazing way.
Users like to see native ads more as compared to the banner ads and many share it with their friends and family as well.
- Accurate targets
The success of the advertisement completely depends on the user. Native ads are more accurate and powerful than banner ads. Banner ads are limited to Web tracker data only and they are mostly misleading and inaccurate.
Integrity is another main reason for the success of the native ads. The ads provide an opportunity for the brand to show the integrated behavior and concern with the user experience.
User engagement with the native ads
Consumers are engaged by native ads and this is good for marketers and the advertisers. A considerable lift in search pages has also been confirmed by a number of advertisers.
Native ad is a special supplement for advertising and enables complete transparency with their readership.
Real time native ads
There are a dozen of examples of the native ads and here are the few of them.
- Online advertorials
- Video advertorials
- Sponsored content
- Print advertorials
- Branded content
- Product placement
Native ads trends
- Native ads are designed to blend into the platform on which it is viewed as the editorial
- It is a brand awareness tool
- It is an amazing content marketing platform
- Native ads deliver great ROI
Future of native ads
Many advertisers are taking advantage of native ads. A native ad is all about placing the ad at the right place and at the right time. It is a huge opportunity for both the marketers and the publishers. It may or may not have brought new wind to the genre of advertising, but it has taught advertisers the real meaning of advertising.
Chirag Leuva is the CEO of Yudiz Solutions, an Android game development firm; where he works to bring client ideas to reality. He enjoys pushing the limits of user interaction and finding ways to create awesome reusable components within a mobile environment.