We wrote a while back about 5 reasons marketers need to be aware of native advertising. Since then, native advertising has skyrocketed. A recent study from IHS Technology and Facebook’s Audience Network details how native advertising is the future of mobile marketing. (And since we know mobile is the future of marketing, marketers need to take note of native.)
If you’re a numbers person like me, the study has the data to back it up:
So native advertising is growing, but that still begs the question, “Why?” Here are 5 reasons marketing is going native.
Why? Consumers are growing tired of having the website they browse cluttered with busy banner ads.
This is especially true with mobile marketing. Try using the same ad creative in a mobile banner as you do on desktop. It doesn’t easily translate. Consumers recognize this as well and often ignore these ads. In turn, attitudes toward native are shifting. People don’t get as tired of seeing native ads as they do traditional banner ads, which results in lower user churn – especially for publishers.
Why? Native advertising seamlessly integrates into existing digital content.
Because of the way native advertising naturally flows with the existing content on a webpage or mobile app, it becomes more about storytelling. This appeals to consumers who desire a more personalized and tailored content experience. IHS found that consumers engage with native ads 20-60% more than standard banner ads.
Why? It goes beyond the fact that the majority of US adults own a smartphone, and has to do with how we consume content on mobile.
Yes, comScore recently reported that nearly 80% of US adults who own a cell phone now own a smartphone (which is staggering!). But native advertising is about more than that. We consume information on smartphones and mobile apps in-feed, where consumers are constantly scrolling through articles and social media news feeds. Native advertising becomes precisely that: native to the mobile user experience – even more so than it does on desktop.
Why? The explosive growth in mobile apps gives native advertising even more room to grow.
Apple introduced their App Store in 2008, and since then there have been over 500 billion app downloads. As I mentioned above, native is perfectly suited for how consumers use mobile apps. Yet when 95% of mobile apps are free to download, how do marketers monetize them in an un-obtrusive way? Native advertising is one answer.
Why? As more marketers see the results from early adopters of native advertising, it’s proving to them that it’s a channel worth investing in.
A top reason why smartphone owners uninstall an app is because of obtrusive ad formats. Native is the opposite, and as a result drives higher retention rate: up to 3x higher than standard banner ads. eCPMs have also received a boost (up to 2x) as well as click-through rates. The next step for marketers will be to understand how people convert from native advertising. The goal of native lies somewhere between branding and enticing user action, so if it’s mobile landing pages users are being driven to ensure you can track both online and offline conversions.
The IHS study also highlights a few key challenges marketers face when adopting native advertising:
As mobile marketing grows, it’s critical that marketers can properly attribute all of their advertising. Check out this infographic to learn more: The Mobile Marketing Blind Spot: What Is It Costing You?
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