How Native Advertising Is Dominating Internet Marketing Strategy

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Online marketing is a popular mode of advertising because it lets business owners track a variety of consumer-engagement statistics. Google AdSense allows a campaign manager to assess click through rates, bounce rates, and time when web traffic was highest, to mention a few. Marketing has shifted from telling customers what they need to have, or be. Companies have realized the most effective advertisements relate to the customer’s personal challenges.

Have you heard of native advertising? It is the creation of customized web-adverts that match a specific user’s needs and interests. Facebook uses native marketing by displaying “suggested pages” for users to like. Complex algorithms and real-time software applications gather and analyze a user’s activity, in order to predict tastes in music, fashion, food, movies and events.

Actual figures prove native advertising is dominating traditional website banners

Facebook and Twitter are arguably the pioneers of using native advertising in social media. Google also uses native advertising by displaying small banner ads in Gmail accounts. A recent marketing study predicts that native advertising will dominate 74 percent of the online display advertising industry by the year 2021.

Here are 13 facts that clearly illustrate native advertisement’s increasing popularity in internet marketing.

  • Native advertisements have an average Click-Through-Rate (CTR) of 0.26%, while conventional website banners deliver a 0.17% CTR. A Click-Through-Rate is a ratio that indicates how many website visitors clicked a specific link, in comparison to the total number of times the advertisement appeared on the website. CTRs are based on days, weeks or months.

  • Native advertising yields a 300% lift in retention rates - in marketing, retention rate is a percentage that indicates how many customers a company has retained versus the number of defections. This percentage is useful in determining the level of brand loyalty and the effects of changes in prices and products. Companies that use native advertising retain three times the number of customers, as compared to using email marketing campaigns and website banners.

  • Native advertising generates a 200% improvement in eCPM - this acronym represents effective cost per impression. In digital marketing, an impression refers to displaying a specific web advertisement within a specified duration. Let’s say you come across a website selling banners, and offer to provide 1,000 impressions per week. What does this mean? To a layman, this means the advertisement will appear 1,000 times on the website in the span of one week.

  • Consumers prefer native advertisements 20-60% more than they do banner advertisements - banner ads are slowly fading away due to the fast-rising popularity of native advertisements. A native advertisement displays what’s relevant to your situation, while a banner advertisement promotes generalized consumer solutions. In addition, native website advertisements are non-intrusive compared to website banners.

  • Native advertisement’s CR level ranks 45 percent higher than web-banners and pop-up windows - a conversion rate is a figure that indicates how many people visited a website and bought a product or service, versus the total number of website visitors in a day, week or month. For you to experience a high conversion rate, your web-based advertisements should connect with your audience emotionally. Visitors will become actual customers if your advertisements are relevant to their current needs or trends taking over the market. Native advertisements speaks to consumer’s hearts, thanks to comprehensive analysis of individual consumption habits and preferences.

  • At least 50 percent of the apps found on Audience Network use native advertising - Facebook uses numerous websites and third-party mobile applications, dubbed Facebook Audience Network, to display advertisements purchased by members. The main aim of the Audience Network is providing an extended reach to larger audiences at lower costs. However, Facebook understands that advertising isn’t just about numbers. It’s about the relevance of your content to your audience. Native advertisement apps displayed on mobile and tablet applications have significantly better conversion rates than random banner ads that appear at the bottom of the screen.

  • Native advertisements are 25 percent more attractive than conventional website banners and pop-up advertisements - social media websites assess individual color choices, preferred language and other statistics to help business owners create successful native advertisements. This is the reason why you won’t come across oversized brightly colored, static, flashing web banners on Facebook or Twitter. In fact, social media websites use thumbnails placed on the right hand of the screen to ensure the advertisements fall into your line of sight.

  • Customers who engage native advertisements experience an 18 percent rise in purchase intent - the main aim of web advertising is converting visitors into customers. Native advertisements use the right words and context to stir up strong purchase intent. Purchase intent is the probability of a consumer buying a product or service after viewing an advertisement. It makes more sense to invest in native advertising, because it effectively drives the website visitor into making a purchase. Web banners fail to spike purchase intent among potential customers, since most of them contain clichéd information such as “click here to receive a 50 % discount”.

  • At least 75% of the world’s biggest print media houses are using native advertising - in 2014, international news giants New York Times and The Guardian launched their native advertising online programs with the aim of boosting their advertising revenues.  Another reason why they embraced native advertising was to reduce the time in-house sales personnel spent designing web banners and pop-up windows. Time Magazine, BuzzFeed, The Washington Post, the Atlantic, and Harper’s Gawker use native advertising these days.  People who visit the website to catch up on the latest news don’t have to worry about annoying pop-up windows and banners.

  • Banner click-through-rates have declined by almost 90 %. The tremendous rise of native advertising has directly contributed to the declining popularity of banners as the main mode of website advertisement. Nowadays, people want to use ad-free mobile applications, because they provide convenient user experience while keeping mobile data costs low. The fact that web-banners occupy large portions of web pages causes customers to take them for granted, and this usually leads to ad blindness. Statistics indicate that in the year 2012, website banners attracted a 2 % Click-Through-Rate. Ten years later, the rate declined to a dismal 0.2 percent.

  • Native advertisements have a 30 percent share-rate on social media - they have an edge over traditional website banners, because they provide sufficient context that helps potential customers to learn more about a promoted product or service. When an advertisement thrills a potential customer on Facebook or Twitter, they will most likely tag their friends and family. The reason why conventional web-banners perform so poorly is because they contain scarce product information, and put more emphasis on prices.

  • Native Advertisements containing audio, GIFS or videos improve conversation rates by up to 60 percent - the advantage of using rich media in website adverts is that they add context to the advertisement displayed to consumers. Using catchy jingles helps the advertisement to stick in the mind of the audience, and they keep playing repeatedly for days or weeks. AdWeek discovered that native advertisements containing one or more rich media files can convert 6 out of 10 website visitors into actual customers.

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  • 71 % of customers who bought a product or service after watching a native advertisement claim the ad personally identified with their needs - you can never go wrong with having the right data in your possession. Note that consumers want to understand how a particular product or service addresses their needs. Native advertisements provide consumers with the details first, before introducing the prices.

Summing it up

Native advertisements definitely give value for money, because their unique characteristics make them superior to web banner ads and pop-ups. The good news is that you can spend the same amount of money you did on web-banners to launch a decent native advertisement campaign.

Knowledge is power. Empower a fellow entrepreneur by sharing this article with them on Facebook, Twitter, and LinkedIn.

İlan Edilmiş 21 Eylül, 2017


Sales & Marketing Guru

Edward is the Sales & Marketing Correspondent for He is currently based in Sydney, and is a self-confessed ice-cream fan.

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