Native advertising is the salvation for publishers and media houses?
Native advertisments (native marketing) is something that many online magazines are starting to work on as an alternative to their reduced advertising revenue and margins. In many cases, it appears as either an article or video, produced by an advertiser with the specific intention of promoting a product, while matching the shape and style of the website. The advertising of the future lies in the creative borderland between new media, data and technology. Native ads are paid ads that target specific audiences and make it possible to strengthen the brand and attract visitors to previous posts.
Different formats for native
- Blogs and influencer marketing
- Social media
Product placement (Embedded Marketing) is a forerunner of Native Advertising. More and more brands are working directly with publishers to push out their brand and the market is expected to increase by 34% over the next year, according to the analysis company Parsely. Native ads also have great advantages over banner advertising - they can not be blocked Adblockers.
In the newspaper business, the New York Times has received a great deal of attention for their "New Native ads"Or" paid posts "as they are called on the website. The method is controversial and makes it difficult for readers to determine that it is not editorial content but they give readers ads that are relevant and perceived as natural. The ads have a blue background (much like Google once had before their ads became transparent) and the campaigns cost 6-figure amounts in dollars - so it's an ad format that is likely to generate massive amounts of advertising money. The New York Times has chosen to display a new browser window for native articles, nor do they have publisher responsibility. Read article
Facebook instant articles
The New York Times, along with 9 other major newspapers including the Guardian and National Geographic, has partnered with Facebook on a technology they call Instant Articles which means that you can read articles without leaving the social network. Facebook gives advertisers 100% of the ad value if the publisher sells the ad and 30% if the ad is sold through Facebook's network.
The different native formats are very different
- Microsoft Bing has started beta-testing the native format and there are plans to expand to other countries. Microsoft markets native as a format displayed based on users' previous search queries.
- Mobile advertising through native ads is also believed to develop a lot in the near future as mobile ads are often considered disruptive and irrelevant. Advertisers want to show relevant and meaningful ads to potential customers.
- Video advertising and native video is an area that will grow and one of the world's largest advertisers GroupM (belongs to WPP) has signed an agreement with Buzzfeed on native video and that viral distribution of videos through Buzzfeed's popular platform and vertical videos is a popular area.
- Native social media is another area that is growing. Facebook has its news feed ads that entice readers to "read more" and a sponsored post on Facebook, Twitter or Instagram can make the company get new users.
Native advertising is nothing new and there have been similar text advertising systems developed by different companies. A few examples are infolinks.com and context (which is mainly aimed at the Spanish market). Infolink has four different ad formats called inframe, insearch, intag and insearch. You also have a lot affiliate sites outside the major newspaper editorial offices that offer editorial texts.
How are natives perceived by consumers?
From a consumer perspective, those readers find it difficult to distinguish native ads from editorial text and many perceive it as articles according to studies from Contently. Native ads are designed (just like paid search results) to look natural.
On nearly every publication we tested, consumers tend to identify native advertising as an article, not an advertisement.
Study Contently 2015
Will native systems follow Google's guidelines for links?
An interesting aspect is how the links will look from the native advertising. According to Google's guidelines, you are not allowed to buy links and I assume that there will be quite a few native formats that will break around these rules. The question is whether Google's guidelines are compatible with EU competition law because they penalize sites that buy links while they themselves have an advertising system based on links. Most likely, the native ads will use "nofollow" links, which means that they do not send the link power to Google.
Matt Cutts, the former Google chief of webspam, commented on advertorials and native advertising in this video.
More information about native advertising?
There are several projects that will launch Native in Sweden at the end of 2015 and we have seen some planned investments that are in beta phase. Contact us if you are a major publisher or advertiser and want to know more.