What Does Native Advertising Mean? — Is It The Real Deal, Or Not?

This article was updated 02/03/2025

So, what exactly are the big takeaways on Native Advertising?

Needless to say, the digital marketing space is starting to expand and become more capable than ever before. Maybe you started hearing a lot of new marketing jargon such as “programmatic,” “native,” or “DSP” at a marketing event or networking conference and wondered what they all mean.

In particular, native advertising seems to get a lot of questions about what it is, and for whom it’s best suited. Native advertising fits into a broader content marketing strategy by requiring high-quality content that seamlessly integrates with third-party platforms. Additionally, native advertising is a form of paid advertising designed to blend seamlessly with the platform where it appears.

Not to worry, Mighty Fine is here to clarify.

The 3 takeaways you should have:

• “What is native advertising?”
• “Why native advertising?”
• “Is native advertising really for me?”

So What is Native Advertising?

It’s nothing you haven’t seen before…

It’s nothing you haven’t seen before…

Native advertising’s formal definition is “paid ads that match the look and feel of the media format they are in.”

Think of them as advertorials in newspapers (when newspapers were cool). You could buy an ad in the newspaper that didn’t look like an ad in the ad section. Instead, you’d get an ad that looked more or less like any other article in the newspaper.

As simple as that was, it worked. Because advertorials would be placed where readers were already looking. In the 1940s to 1960s this form of media buying exploded with companies trying to get in on this format across all types of media – magazines, TV, newspapers. The importance of UX in native ad campaigns cannot be stressed enough; placement and clarity within a platform = user happiness.

Native search ads blend in with search results, so they’re less annoying for users. These ads align with user queries and benefit both advertisers and publishers by making money.

Brief history and evolution of native advertising

Fast forward to the early 2000s, and native advertising started to take shape with the rise of social media and online publishing. In the early days of online advertising, banner ads were the norm. But as users became better at ignoring those flashy distractions, advertisers had to get clever. Enter native advertising, a solution that allowed brands to create content that was relevant and engaging and less intrusive than display ads.

Native advertising has evolved over the years to include many formats. From in-feed ads on social media to sponsored content on publisher sites, the options are endless. The rise of mobile has led to new native ad formats like native video ads and in-app ads.

Today native advertising is a big part of the digital ad landscape. Brands and publishers know it drives engagement and conversions, so it’s a must-have in every marketer’s toolbox.

Types of Native Ad Formats

Native ad formats have come a long way, offering a variety of options to suit different marketing needs. Here are some of the most common types:

• In-feed ads: These ads appear directly in the news feed of social media platforms like Facebook and Twitter. They blend in with the organic content, making them less disruptive and more engaging for users.
• Sponsored content: This involves partnering with a publisher to create content that resonates with their audience. It’s like having your brand’s story told by a trusted voice in the industry.
• Native video ads: Designed to blend in with the video content on a publisher’s site, these ads offer a seamless viewing experience. They can be particularly effective in capturing attention and driving engagement.
• In-app ads: These ads appear within mobile apps, offering a targeted way to promote products or services to users who are already engaged with the app.
• Search ads: These ads appear at the top of search engine results pages, designed to drive traffic to a website. They are highly effective in capturing intent-driven searches.
• Promoted listings: Found on e-commerce sites like Amazon, these ads promote products to users who are already in a shopping mindset, increasing the likelihood of a purchase.

Each of these native ad formats offers unique advantages, allowing advertisers to choose the best fit for their campaign goals and target audience.

Ok, so how do native ad formats affect the “now”?

Nowadays, major online publications allow sponsored articles on their websites, just like advertorials in newspapers. This is an awesome opportunity for advertisers because an old advertising method has been reinvigorated, with some significant digital advantages that weren’t available before. Publishers provide ad space for advertisers to bid on, emphasizing the increased efficiency and revenue potential through automated, real-time bidding processes that tailor ads to audience interests.

Marketers are starting to explore native advertising more than ever. We can see more money is being spent on native advertising, as display advertising spending seems to be plateauing.

Native display advertising is expected to receive $108.83 billion from American marketers in 2024. The rising significance of native formats in digital marketing tactics is highlighted by this substantial expenditure.

The total amount spent on digital advertising in the United States is projected to reach $309.3 billion in 2024, up 15.1% from 2023, surpassing $300 billion. Specifically, in 2024, 56.4% of digital advertising budgets will go toward display ads, a steadily increasing share compared to search. (emarketer)

Native content has a leg up when it comes to other forms of display ads. Why? This is because audiences are starting to develop “blinders” towards typical display ads that clutter the sides of web pages. Native advertisement circumvents this problem by placing ads in prime-time web real estate. Simple, and highly effective at engaging target audiences!

Why Native Advertising?

It’s a better mousetrap, that’s why!

The difference between digital content and traditional content boils down to tracking capabilities. Traditional media simply doesn’t have the tracking capabilities digital media has.

When it comes to native content in comparison to other forms of digital advertisements, native has a leg up. This is because audiences are starting to ignore ads completely—people are starting to develop “blinders” towards typical display ads that clutter the sides of web pages.

Native video ads: Simple AND effective — without all the gimmicks

You’ve definitely seen it before. Nowadays, we’re starting to see annoying pop-up banners that drag across your screen, making it difficult to close out of. Digital banners are trying to capture people by any means necessary by using these gimmicky tactics. If anything, those annoying ads leave a sour taste in your audiences. Despite this, some advertisers will continue to bombard audiences with these ad formats that are more irritating than effective to potential customers.

With today’s level of technology, native ads can be as targeted as display ads. Not to mention, without as many wasted views as display ads tend to have. This is because native ads appear where people are actually paying attention.

So, in reality, there are a couple of major advantages to native advertising. The high level of targeting you can achieve, paired with the prime real estate these ad placements receive, allows you to get the most bang for your buck.

Is Native Advertising Really for Me?

In the big picture? Hell yeah, it is…

Native advertising is a need in almost every situation nowadays, particularly if you fall into one of these three categories:

If you are a new company that requires audience education, for an innovative new product never before seen on the market; then native is for you.

Maybe you’re in a very competitive space like an electrician company or dentistry and you would like to showcase how your quality control separates you from your competitors in the midst of a very congested space; native is for you.

Or, perhaps you need to bring awareness to an environmental/social issue people are having. Then you guessed it, native advertising is for you too.

All of these scenarios fit the bill for native advertising.

Sure — but what do the numbers say about native advertising campaigns?

In fact, native advertising is starting to become less of a “would like to have” tactic and more of a “need to have” tactic. This is because people are starting to become more skeptical of what they see online. Believe it or not (no pun intended), native ads registered an 18% higher lift in purchase intent and a 9% lift for brand affinity responses than banner ads, according to eMarketer. The numbers don’t lie, and they say native advertising is in!

These trends suggest that native advertising continues to be a “need to have” tactic. Effectively addressing consumer skepticism by providing more integrated and engaging ad experiences.

Measuring Success with Native Advertising

Measuring the success of native advertising campaigns can be a bit tricky, but it’s crucial for optimizing performance. Here are some key metrics to keep an eye on:

• Click-through rate (CTR): This metric measures the number of users who click on an ad compared to the number of users who view it. A higher CTR indicates that your ad is engaging and relevant to your audience.
• Conversion rate: This measures the number of users who complete a desired action, such as making a purchase or filling out a form. It’s a direct indicator of how effective your ad is at driving actions.
• Cost per click (CPC): This metric measures the cost of each click on an ad. Lower CPCs can indicate a more cost-effective campaign.
• Cost per acquisition (CPA): This measures the cost of each conversion. It’s a valuable metric for understanding the overall efficiency of your campaign.
• Return on ad spend (ROAS): This metric measures the revenue generated by an ad campaign compared to its cost. A higher ROAS indicates a more profitable campaign.

By closely monitoring these metrics, advertisers can gain valuable insights into their native advertising campaigns and make data-driven decisions to optimize performance.

The key ingredient to Native

Now that we’ve explained what native advertising is, what it’s used for, and what makes it unique—there is one HUGE factor that can determine whether or not you see results with your campaigns.

The key is content.

We bring emphasis to this point because a well-executed native advertising campaign needs to look and feel like native content you would find naturally.

What do we mean by that? Simply put—don’t try so hard to sell your product! Instead, your primary goal should be to bring value to your audiences before you even think about offering them something.

People like being convinced and persuaded, but they don’t always like being sold— especially online. If you can create content that brings value to your audiences without sounding like a hardcore car salesperson, then you are going to bring a healthier pool of people to your website. And the best part is that you can retarget that pool later with other ads and content.

These audiences are more likely to come back to your site because they are genuinely interested in your brand, rather than trapped and frustrated by a gimmick. When we’ve implemented native advertising using these methods, we have seen healthier conversion rates, as well as lower bounce rates.

Ethics and Disclosure in Native Advertising

Ethics and disclosure are critical components of native advertising, helping to build trust with users and ensure transparency. Here are some key principles to keep in mind:

• Transparency: Always be clear and transparent about your intentions. Disclose that an ad is sponsored content to avoid misleading your audience.
• Honesty: Be honest about the products or services you are promoting. Avoid making false or misleading claims that could damage your credibility.
• Respect for users: Respect your audience’s time and attention. Avoid using deceptive or manipulative tactics to get them to engage with your ad.

By adhering to these principles, advertisers can create ethical native advertising campaigns that build trust and foster long-term relationships with their audience.

Final Thoughts

Of course, all of these tips and tricks are easier said than done. On the plus side, if they are executed correctly, they can lead to higher engagement and better conversion rates.

Don’t forget about the last point that we made about content. It’s important to understand the value of having an effective website or landing page—and make sure you are tracking these pages as well.

Our advertisers at Mighty Fine are happy to analyze your aims and give you a consultation if you’d want to learn more about developing these components.