Native ads are one of the most immersive formats. In terms of user experience, it's hard to beat ads that are perfectly cohesive with the other content on the page. 

Sometimes, it’s hard to even differentiate between organic content and native ads (and when it comes to ad performance, that’s a good thing!). 

If designed and implemented correctly, improving ROAS with native advertising isn’t that difficult.

This article is your go-to guide to native advertising. We’ll cover everything you need to know about the intuitive ad type, and take a look at some key native advertising examples that you can learn from.

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What is native advertising?

Native advertising is a paid media model in which the advertisement blends with the natural habitat, format, and functions of the platform where they appear. The idea is to appear less intrusive and salesy. Native ads help you:

• Promote content: Position your content to an engaged audience at the right time.
• Drive engagement: Add value and encourage viewers to engage with and share your promoted content.
• Build trust: Establish your brand as a source of quality information by providing valuable, informative, or entertaining content that blends seamlessly with other on-page content.

For example, this native advertising example from Adobe blends with LinkedIn's in-feed experience and surrounding content.

Native ads mostly appear on social media feeds, SERPs, or publishing sites, and are often hard to spot due to their adaptable nature and high contextual relevance. 

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"Native advertising is like a chameleon of ads - they can fit anywhere." – Steffen Horst, Symphonic Digital.

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Why is native advertising so effective?

Native advertising has evolved significantly over time. Nowadays, native advertisements are more difficult than ever to tell apart from organic page content. The method continues to prove incredibly effective, as it provides value for both the brand and the audience.

• Higher engagement: Even if users know the content is paid for, native advertising gets higher engagement than traditional advertising methods. A report from Facebook mentioned that when engagement rates of native ads and banner ads are compared, the former has 20 to 60% higher rates. 
• Increased user retention: Native ads boast higher user retention rates - often three times higher than other ad formats because of their contextual relevance.
• Higher click-through rates: Native ads can deliver up to 8.8 times higher CTRs than display ads, leading to greater conversions. That's because advertisers can reach audiences at highly impactful moments when users are open to discovering something new.
• Better return on investment: With higher engagement and conversion rates, native ads typically deliver a better ROI. According to Emarketer's December 2023 forecast, US spending on native ads will account for 63.1% of total display ad spend in 2024.
• Creative flexibility: Native advertising allows for tailored, platform-specific content, enhancing effectiveness. You can advertise in different formats, including articles, social media posts, product listings, etc.
• Preferred by consumers: Over 56% of survey respondents prefer native ads since they offer valuable content and are not just intended to sell you something. 
• Bypass ad blockers: Many native ads can bypass ad blockers, allowing them to reach a larger audience. Although there are certain privacy rules and regulations native ads must comply with, such as mentioning 'sponsored' or 'paid' or displaying a sign on the ad to make it more transparent.
• Improved brand awareness: Native ads can help establish a strong brand presence and increase brand favorability. Consumers look at native ads 53% more often because of their mix-and-match with already available content on the web page.

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How to spot native advertising - native ads vs. display ads

Display ads are ads that appear in the online space, like banners and pop-ups. Unlike native ads, they appear bright, bold, and disruptive to the original content of the web page. They're far more intrusive than native ads, and are easier to disregard and ignore.

The example below shows a prominent banner ad on the right-hand side of the page. 

In contrast, native ads don't disrupt the flow in which you are consuming content over the internet. For example, if you're scrolling through Facebook, native ads adapt to the feed and aim to look similar to your usual feed of content.

Let's have a quick rundown of native advertising and display advertising:

Appearance

Display ads have an obstructive screen appearance and are easy to spot. These ads work as a hard sell, obviously trying to get the viewer to purchase. They essentially yell "look at me! Buy me! Pay attention to me!" which can be effective in certain scenarios, but are easily dismissed by users and can contribute towards ad fatigue.

Native ads are not ads in appearance. They fit comfortably with the style of the web page, so they feel more 'editorial' in nature. These ads soft-sell customers with relevant content that aims to replicate organic content.

Trustworthiness

People don't readily trust banners or display ads anymore. Firstly, from the initial interaction, it's apparent that they are ads. Secondly, clicking on the banner might put their information and privacy at risk. 

Native ad content is minimalistic, appearing more like organic posts compared to display ads. That's why 75% of consumers trust the content of native ads, but only 54% of consumers demonstrate the same trust in display ads.

Mobile-friendliness

With the growing dominance of mobile devices in online browsing, native ads seamlessly fit into the user's mobile experience, enhancing their effectiveness. Native advertising formats are inherently responsive and adaptable to various devices and screen sizes. 

Display ads, especially traditional banner ads, are good for desktop advertising but can be less mobile-friendly and may not display well on smaller screens. 

Click-through Rate 

Display ads require immediate impact and typically have low click-through rates – just 0.05% across all formats and platforms. Banner blindness is a prominent factor.

This isn't the case with native ads. On average, native ads achieve a click-through rate (CTR) of 0.2%, compared to 0.05% for display ads. However, this figure jumps to 0.38% for premium native ads on mobile devices.

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How to create native ads

Looking to add native advertising to your campaigns, or improve your existing efforts? Here's what you'll need to set up native advertisements:

Step 1: Set clear goals

Native ads, or any ad format in general, require clear campaign goals.

Whether you want to:

• Generate leads for your professional service
• Sell physical products
• Amplify brand awareness
• Send traffic to your website

It all starts with a defined goal. Selecting a goal helps you choose the best ad format and platform to reach a wider audience.

A proven goal-setting technique is to set SMART goals. 

• S - Specific 
• M - Measurable 
• A - Achievable 
• R - Relevant 
• T - Time-bound 

Suppose you want to increase blog traffic with paid search ads. 

In a SMART framework, this goal would be: 'Increase blog traffic by 10% in the next three months using paid search ads.'

It's SMART because:

• Specific: Mentions increasing traffic by 10% using search ads
• Measurable: Specifies a 10% sales increase that serves as a performance measurement metric 
• Achievable: Clarifies that paid search ads are the method to achieve this growth
• Relevant: Alludes to the fact that increasing blog traffic impacts business objectives
• Time-bound: Includes a specific three-month time range for completion

Step 2: Understand your audience

Knowing your audience ensures your ads are reaching the right people. Find answers to questions like:

• Who are my current customers?
• What pain points does my product or service solve, and how?
• Where does my target audience spend time online?
• How does my target audience consume content?

Analyze their demographics, behavior, preferences, and interests to identify overlapping interests. Then, find a good intersection of what your audience values and what your brand is best positioned to deliver.

Tip: Analytics tools like Google Analytics can be a great start for researching a target audience. 

Step 3: Choose your ad type and platform

Different native ad types best suit different platforms, goals, and offers. 

Think about which platform(s) are best for your ads. Consider what type of content your audience consumes. Is it text, video, or image? Assess what platform they are most active on.

For example, carousel ads are useful in building a brand story over LinkedIn. Video ads are enticing and have a great hook. 

Similarly, choose the best ad platform before developing your creatives.

Tip: The content users land on when they click the native ad must be a natural continuation of the ad experience. Never promote something in a native ad that isn't followed up on in the native content.

Step 4: Create ad content

When creating ads, marketers must focus on crafting quality headlines, images, and content. Here are some tips to get started:

• Avoid using logos in images, instead use something that's in line with ad text.
• Have congruent ad images and headlines, meaning that they relate to each other in a logical and compelling way.
• Choose an ad design that complements the platform for a seamless user experience.
• Concise copy tends to perform best in native ads. Headlines should be fewer than 60 characters, and the intro text should be under 150 characters.

Step 5: A/B test

Always be A/B testing different images and headlines until you figure out what's working with your audience.

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"Native ads can be extremely profitable and easier to scale once you have something working. The problem is most people don't see success because the traffic is colder and hard to convert." — Brandon Ham, Co-Founder of 021.inc

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Best native advertising examples to learn from

When it comes to optimizing your native advertising efforts, it helps to learn from the best. Take a look at these outstanding native advertising examples:

1. Amazon’s in-feed ads on social media platforms

Amazon has several in-feed ads on social media platforms like LinkedIn and Meta. Here’s a great native ad example we came across on LinkedIn recently:

Why does the ad work?

• It integrates with the platform: Until you spot the small, greyed-out 'promoted' sign, it's hard to distinguish between this ad and a general carousel post on LinkedIn. 
• It capitalizes on LinkedIn's B2B nature: LinkedIn generates 80% of all B2B leads. Had this ad been on Instagram, it would have made far less of an impact, considering its focus on brand building. 

Key takeaways

• Use carousel ads to advertise products or collections, using visuals and concise descriptions to entice customers.
• The ad copy and headline must be congruent, meaning they relate to one another in a logical and compelling way.

2. Sponsored Augmented Reality (AR) Experiences

For video-heavy platforms like Snapchat and TikTok, sponsored filters and stickers are the go-to native advertising models to resonate with a younger audience.

Why does the ad work?

• It blends with the platform's characteristics: You can use the ad as a filter, just like other filters on Snapchat. It's less intrusive and blends with the narrative of the social app without disrupting user experience. 
• Clear and direct call-to-action(s): This ad acts as a funnel with three main stages from top to bottom–brand awareness, curiosity, and a clear product. It starts with the brand name, followed by the 'New collection in stores' copy to drive curiosity. Then, the final product will be presented with transparent pricing and a link to the product page. 

Key takeaways

• Recently, Snapchat introduced augmented reality (AR) & machine learning tools catered to brands and advertisers. If you are into wearables, clothes, or other products that could take advantage of this, maybe it's worth looking at these platforms. 

3. Ecuador tourism content recommendation ads

News and media sites often collaborate with companies on paid articles.

Ecuador Tourism, a travel and tourism company, partnered with National Geographic on a paid story exploring Ecuador's rich flavors and diverse culinary heritage. See how they introduce native ads into the space that are almost indistinguishable from organic content.

Why does the ad work?

• It adds value: The recommendation feels organic, seamlessly integrating with the user's reading journey. They provide additional value by suggesting relevant content, making users more likely to click.
• It's not intrusive or salesy: Clicking on the post redirects users to an article with more information on the story. An avid reader would find this information more interesting than being redirected to the discounted trip packages.

Key takeaways

• Unlike banner ads, native ads don't intend for immediate results. They are more organic and flow naturally through the buyer's journey before pitching them the product or service after the first click.
• The more natural your ad feels about the placement and editorial content, the more chances it has to get engagement, even if it says 'paid.'

4. Amazon product listings

Promoted listings are product ads on e-commerce marketplaces like Amazon, eBay, and Etsy. You can also use these ads to increase visibility and drive sales.

Why does the ad work?

• It aligns with the audience's buying intent: These native ads appear at top search results and are relevant to the target user search query for a 'Sofa set', increasing the chances of a click or purchase.
• It's seamless: Like other native ads, promoted products blend with regular product listings and mimic the appearance of the e-commerce platform.

Key takeaway

• Native ads allow you to pitch customers at the right moment, thereby having a greater impact on users' purchase decisions and increasing the chances of conversion.

5. Paid search ads

Paid search advertising allows you to display your ads on search engines like Google and Bing. These ads are placed above organic results, but they're labeled ‘Sponsored’ or ‘Ad.’

Why does the ad work?

• It looks natural: The ad doesn't look disruptive. It complements the organic content below and the functions of the web page. 
• It satisfies the search intent: Although sponsored, the content is highly relevant to the user's search interest. Therefore, it demands immediate engagement from the audience. 

Key takeaway

• If your goal is primarily to drive traffic to your site in the short term, you might choose to focus on native PPC ads.

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Final thoughts

Here are some key takeaways on using Native advertising the right way:

• Native ads should blend with the natural content and format of the publishing platform, making them less intrusive and more engaging.
• Customers trust native ads more than display ads, mainly because of contextual relevance. So make sure you deliver on it. 
• Native ads capitalize on ROI and yield 20-60% higher engagement and 9x click-through-rates compared to banner ads.
• For any native ad to be effective, ensure a clear goal drives it and triggers the interest of the target audience.
• When creating ad content, use images instead of the brand logo, followed by relevant ad copy, headline, and CTA to increase ad effectiveness. 

For more information on native advertising and its best tips and tricks, check out this blog from Content Marketing Institute and Native Advertising Institute.

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The secret to ad spend efficiency

One constant with all forms of online advertising is the continuing prevalence of invalid traffic (IVT) and other types of click fraud. Competitors, scrapers, click farms, proxy servers and more continue to eat away ad your ad budget, meaning you're wasting your ad budget on clicks that never convert.

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Find out exactly how much you're spending on IVT, and learn how to block it (ensuring only real people are seeing your ads!) with a 14-day free trial with Lunio.

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