Native Advertising – The What, Why, and How.
15 seconds. That is all the time an online article has to capture an average reader. But how do we know that if someone clicks on something, they have in fact read and digested the content? Traditionally, the measurement of ad performance on the web and email campaign effectiveness was based on a “click through” rate (CTR). However, advertisers are becoming increasing aware that this measure is not the be-all and end-all and have turned their attention to what is happening behind the clicks. Engagement has been the buzzword of growth markers for a few years. When you have people’s time and attention, you’re on the road to engaging with your audience.
“Sites like the New York Times are redesigning themselves in ways that place less emphasis on the all-powerful click. New upstarts like Medium and Upworthy are eschewing pageviews and clicks in favor of developing their own attention-focused metrics. Native advertising, advertising designed to hold your attention rather than simply gain an impression, is growing at an incredible pace. ”
– Tony Haile, Time.com article
Understanding user behaviour and how to speak to users is critical to capturing attention and building engagement. Research across the Chartbeat network has shown that if you can hold a visitor’s attention for just three minutes they are twice as likely to return than if you only hold them for one minute.
In comes Native Advertising.
What is it?
Coined in a talk given by investor Fred Wilson, Native Advertising is defined as an online advertising method in which the advertiser attempts to gain attention by providing content in the context of the user’s experience. For example, you may have noticed some ads in your Facebook newsfeed. Placed in this context, these ads achieve a 49 times higher click-through rate and a 54% lower cost-per-click than traditional placements in the right rail side bar according to an AdRoll analysis of ad impressions traded through FBX, Facebook’s ad exchange.
Why should you use it?
You’re more likely to survive a plane crash than click on a banner ad – Solve Media
Native ads are more visually engaging than banner ads with consumers looking at native ads 52% more frequently than banner ads. Estimates by Business Insider Australia shows that native will be at least 40% or more of over $US 10 billion in social media ad spend by 2017. Social media in particular have been at the forefront of this trend, seamlessly integrating and transforming ads to appear more like content.
How should you use it?
Here are some great examples of Native Advertising:
1. David Ogilvy’s “Guinness Guide to Oysters” (feature image) is the perfect example of a print advertorial. It is visually pleasing and information rich and paired perfectly with the product they were selling – a Guinness Extra Stout.
2. Mini USA – “Not Normal” Campaign
A prominent car brand, Mini USA’s key messaging was that their users are people who love their car so much that it’s “not normal”. To complement this campaign, Mini USA sponsored a post a BuzzFeed titled “25 places that look normal but are actually real.” This ad accrued 1.3m social actions over approximately 16 months including 7,000 Twitter shares and 110,000 Facebook likes.
The thing to remember is and as Paul Keers, London Bureau Chief, White Light Media said, “Success, of course, lies in creating content which is right for the brand, which is paying for it; right for the publisher, which needs to retain its identity; and right for the audience, who must find value in the content if they are to engage.”
By Kalai Chu, Senior Research Consultant
For further information on THINK Global Research, please contact Kristy Ihle (Managing Director): info@thinkglobalresearch.com.
