Definition and Background
What is Native Advertising?
Native advertising, also known as “advertising in a familiar environment,” is a specific form of advertising used both online and in print media. The goal of native advertising is to design content so that it blends seamlessly into the editorial environment and is difficult for users to distinguish from non-advertising articles. This type of advertising aims to attract users’ attention through a form of camouflage, making advertising messages appear more subtle and less intrusive.
Historical Development
The idea of native advertising is not new. As early as the early 1990s, the first advertorials, a mix of advertising (advertisement) and editorial content (editorial), emerged. These were presented in an editorial format to be less disruptive to readers and achieve higher acceptance. An even earlier example is the soap operas on the radio in the 1930s, sponsored by consumer goods companies and whose advertising messages were cleverly woven into the plot.
The modern concept of native advertising, as we know it today, was explicitly named for the first time in 2011. It has evolved from a long tradition of advertising and has established itself as an independent format. Adapting advertising messages to the look and feel of the medium in which they appear is a central aspect of this advertising form. By integrating into the editorial environment, the transition between editorial content and advertisements should be almost imperceptible to the reader, increasing the effectiveness of advertising measures.
Formats and Examples of Native Advertising
Native advertising takes many forms, each aiming to blend seamlessly into the surrounding content, enhancing the user experience. Two prominent examples are text ads and advertorials.
Text-Ad
Text ads are a subtle yet effective form of native advertising often found in newsletters and online publications. These ads resemble editorial articles and are often only marked by a small note as “advertisement.” Their high click-through rate—often 178 percent higher than traditional ad formats—testifies to their ability to integrate seamlessly into the reading flow. Text ads provide a platform where advertisers can present their products or services in an editorial format that piques readers’ interest and builds trust.
Advertorial
Advertorials are another popular method in native advertising, especially in online and print media. Originally conceived as a mix of editorial content and advertising, advertorials have evolved into a platform that not only highlights products but also provides valuable information. Modern advertorials are designed to fit the thematic environment of the publication and subtly convey the advertising message. They generate interest and engagement by delivering relevant content that informs readers while presenting the brand in a positive light. By using engaging texts and visual elements like videos or images, a story is told that captivates readers and encourages them to learn more about the advertised product or service.
These formats enable advertisers to effectively communicate their messages by blurring the lines between advertising and editorial content. By adapting to the environment and providing content that is of interest to the target audience, they increase engagement and promote a positive perception of the brand.
B2B Applications of Native Advertising
Early Purchase Decision Process
Native advertising plays a crucial role in the B2B sector, particularly in the early engagement of potential customers. By placing content in trade media that is seamlessly integrated into the environment, you can reach your target audience already in the “See” phase of the purchase decision process. This allows you to shorten the entire customer journey by addressing the needs and interests of your customers early on. By applying native advertising in this early phase, you can not only capture customers’ attention but also positively influence their decision-making process.
Complex Product Communication
In the B2B sector, products and services often require extensive explanations that cannot be easily conveyed in short advertising messages. Native advertising offers an effective solution by enabling extensive and in-depth information to be presented in an editorial format that fits organically into the reading flow. Using engaging advertorials or detailed case studies, you can convey complex content while demonstrating your expertise and credibility. This not only promotes understanding of your products but also strengthens trust in your brand.
Branding and advertising
Legal Aspects of Native Advertising
Labeling Requirement
In Germany, it is essential that advertising is clearly recognizable as such. This is particularly true for native advertising, where content is often seamlessly embedded in editorial offerings. Legal requirements, especially through the Media State Treaty (MStV) and the Telemedia Act (TMG), require clear labeling of these forms of advertising. This must be visible already in the teaser and not just on the landing page. This ensures that you act transparently as an entrepreneur and do not jeopardize the trust relationship with your customers.
Unfair Advertising
The Act Against Unfair Competition (UWG) plays a crucial role in regulating native advertising. It defines specific practices as unfair, including concealing important information or hiding the advertising nature. Violations can have serious legal consequences. Therefore, it is critical that all forms of native advertising, whether online or in print media, are clearly labeled as advertising, not only to comply with legal requirements but also to maintain the trust of your target audience.
Conclusion
Native advertising has proven to be an effective strategy for gaining consumers’ attention unobtrusively. By seamlessly integrating into editorial content, it enables higher acceptance and interaction from the target audience without the advertising nature being immediately apparent. This type of advertising leverages the familiarity and trust that consumers have in established media formats and manages to communicate advertising messages effectively and subtly.
The increasing popularity and effectiveness of native advertising are reflected in revenue figures. Since 2013, revenue in the USA has more than doubled and is expected to exceed the $20 billion mark by 2018. This underscores the growing importance of this advertising form in an increasingly digitized world, where traditional advertising methods often face rejection.
For companies, this means that by using native advertising, they can not only increase their reach and visibility but also build a deeper connection with their customers. By providing relevant and engaging content that blends organically into the user experience, a positive perception of the brand is promoted, and long-term customer loyalty is enabled.
However, it is crucial that companies comply with legal frameworks and clearly label their native ads as such. Transparency creates trust and ensures that the brand’s credibility is not undermined by misleading advertising practices. By finding the right balance between advertising message and user experience, native ads can achieve not only short-term attention but also sustainable results.
Ongoing measurement and adjustment of strategies in native advertising are essential to meet constantly changing consumer preferences and maximize the effectiveness of campaigns. By combining direct marketing tactics with native advertising, companies can achieve impressive results that increase both brand awareness and customer engagement.
FAQs
1. What is native advertising, and how does it work?
Native advertising is a marketing strategy that aims to integrate ads seamlessly into a webpage’s content. This type of advertising is based on the principle of supply and demand. Publishers who want to monetize their websites offer their platforms as advertising spaces to utilize reach and audience.
2. How are native ads visually designed?
Native ads differ from traditional display ads, such as banners, by blending visually and contextually into the webpage’s content. They adopt the design and “look & feel” of the respective page, making them less intrusive and seamlessly fitting into the site’s content.
3. What legal labeling requirements must be observed in native advertising?
In Germany, native ads must be labeled as such to make it clear to users that they are advertising content. This is usually done through clear notices such as the inscription “advertisement.” This regulation helps maintain transparency with consumers.
4. What distinguishes a native ad from other forms of advertising?
A native ad is designed to adopt the design of the website or app it appears on and harmoniously fits in. This makes it more user-friendly than traditional advertising forms. While visitors are aware that it is advertising, these ads complement the website or app content meaningfully.
