Native Programmatic Advertising
Ad Blindness is a phenomenon that occurs when a user subconsciously ignores webpage content that appears to be an ad. Unsurprisingly, this challenges advertisers to field ad content that achieves optimal audience engagement.
A solution to this challenge is native advertising. This method allows advertisers to show their ads discreetly, but not blow the cover of being an ad.
Although it may sound counterintuitive to disguise ad content to receive improved clicks, this method is growing in popularity. According to eMarketer, native display advertising spending is forecasted to grow by 17.6% in 2022 and 13.9% in 2023.
This method is seeing massive growth because native programmatic ads provide a more intuitive consumer experience. This article reviews the ins and outs of native advertising and how marketers can use it to their advantage.
What is Native Advertising?
Native advertising refers to ads that imitate the form and function of the platform upon which they appear. The goal is to make the ad look 'native' to the webpage. This makes users more likely to engage with the content. According to this study, users interact with native advertisements 20% to 60% more than standard display advertisements.
What is Programmatic Advertising?
Programmatic advertising is purchasing ad space through automated technology, as opposed to traditional (often manual) purchasing of ad space. To field a programmatic ad, publishers (using supply-side platforms) connect with ad space buyers (who use demand-side platforms) via the ad exchange.
Want to learn more about programmatic advertising? We took a deep dive into the topic in this article.
What Is Native Programmatic Advertising?
Native programmatic advertising is simply the intersection between native and programmatic advertising. The method allows advertisers to automate native ad space buying and targeting with the help of programmatic software.
Using native programmatic ads, advertisers are leaping into the next generation of technical advertising. They no longer need to establish personal relationships with ad space sellers. Instead, using programmatic technology, everything is automated, and the ad reach boosts across vast networks of websites.
How Does Native Programmatic Advertising Work?
Unlike banner or display ads, native ads don't look like ads, so they don't disrupt the user's interaction with the webpage. Advertisers follow these four steps, listed below, to place a native programmatic ad.
First, the advertisers identify their budget, target audience, and creatives they want to field.
Second, they select the demand-side/programmatic platform and plug in the above info.
Third, the DSP (demand-side platform) navigates the ad exchange to bid and field the ad on optimal websites for target audience viewing.
Native programmatic advertising is unique in that it requires the advertiser to modify their ad format so it better plugs into the layout of the webpage.
The final step is to optimize and repeat. Advertisers look at the success of the campaign and modify it accordingly. Luckily, since the native programmatic ad platforms heavily rely on machine learning, they will do a lot of the heavy lifting to ensure ads hit the correct target segments.
Types of Native Programmatic Ads
Advantages of Native Programmatic Advertising
A More Intuitive User Experience: With native programmatic ads, users aren't bombarded by pop ups or display ads, resulting in 'banner blindness' – where users subconsciously ignore all ad content. Instead, these native ads are discrete and engagement-friendly because there is no pressure to click on them.
Increased Brand Awareness and Engagement: Programmatic methods diversify and grow the campaign's reach, hitting many users across different websites and segments.
Higher Click-Through Rates: According to studies from the University of Michigan and the Native Advertising Institute, native ads receive a higher CTR than less discrete ad types like display or video. Why? Native programmatic advertising shows ads to more relevant users in a more inviting format.
Ad-Block Friendly: Over the last few years, ad-blocking software has become more available for users. This software has threatened many display ads and banner popup campaigns. Luckily, native ads curve this problem since they display within the web content.
More Trustworthy: According to the Native Advertising Institute, native ads generate 33% higher trust levels than display ads. From the get-go, users have a better impression of the advertiser, boosting their likelihood of converting.
Device Responsive: Ads displayed on standard web pages are often cropped when accessed via a mobile device. Native ads fix this by integrating directly into the web content, thus making them appear across platforms.
Better Value: Creatives for programmatic native ads have to follow the hosting webpage's format. As a result, ads cannot include flashy titles or marketing language. Instead, advertisers use ad formats, such as a blog, article, or endorsement quote. Ultimately, this provides more value to the user than an 'in your face ad trying to boost CTR.
Native Programmatic Advertising Campaign Best Practices
One of the essential parts of a programmatic native campaign is having robust goals and info on the target audience. It is useless to try and set up the programmatic campaign without knowing the main KPIs and where customers most commonly reside online.
One of the most important best practices after campaign execution is testing and optimization. Advertisers should compare the campaign's performance to the baseline goal metrics established before execution. Based on this data, they can adjust bid prices and website locations or switch to a different programmatic platform. Advertisers may modify the creatives, as well, to make them match the format of the web pages.
After completing the steps above, the advertising team should continue to field their programmatic native ads, optimize, and repeat. They should also be confident to test and experiment with new elements to see if they can boost campaign success. That is marketing!
It is crucial to take a step back and ensure the ad content continues to adhere to native formatting. The ad content should be free of hard-selling and explicit language that other ad formats like display or video may include. Instead, it needs to provide value to the user and look like content is naturally part of the hosting webpage. No matter how hard the programmatic platform works, the campaign will only succeed if the ad fits.
Overcoming Challenges in Native Advertising Campaigns
Advertisers need to find a happy medium between an ad that pulls people in but doesn't give itself away. On some websites, the native ad content may integrate so well into the web format that the user misses the prompt to click on it. Conversely, despite the native ads' attempt to be discrete, the content may look too much like an ad.
Additionally, these campaigns require close attention. Optimization and maximization are essential. For instance, the ad team may set the budget too low and fail to gain traction. Or, they may put the bid price too high and gather unsubstantial data. Regardless, the team running these ads needs to know that just pressing 'go' on the campaign doesn't mean their work is done. They need to test, optimize, and repeat.
In Conclusion
Programmatic advertising methods are taking the marketing industry by storm. Although shifting advertising operations to new techniques can be intimidating, it will only help in the long run. In just a few years, programmatic won't be a new term that is turning heads but a globally accepted aspect of how advertisers field ads in the 21st century.
By diving in early to new methods, like native programmatic advertising, you are taking one step into the future, which will result in leaps for your future campaigns.
Curious about the advantages of working with a digital media agency partner? Reach out to Pathlabs to see how we can become an extension of your team.
