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The Shift to Native Advertising in Marketing

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http://www.mdgadvertising.com/blog/the-shift-to-native-advertising-in-marketing-infographic/

Advertisers Go Native in the Search for Consumer Engagement

It’s a simple premise. If you want to engage online consumers, give them more of what they go online for in the first place. Advertisers are doing just that by shifting to paid content that’s similar in nature to and displayed in the same format as the editorial content surrounding it. The idea is to get consumers to click on and then share these “native ads” with others.

It’s a solution that benefits everyone involved, including publishers, brands, advertisers, and consumers. Advertisers and marketers gain a more relevant and engaging way to reach their target markets. Publishers make money from selling branded content to advertisers. And consumers get more of the kinds of content they’re searching for. Add in the rapid growth of social media and mobile technology usage, and native advertising holds vast potential.

A new infographic from MDG Advertising explains this new phenomenon and reveals some impressive statistics:

70% of consumers want to learn about products through content as opposed to traditional ad methods
75% of publishers currently offer some type of native advertising on their sites, and 90% say they either have considered or will consider using it
There are a number of motivating factors triggering the use of native advertising:

67% of brands use native advertising in an effort to provide more-relevant messaging
63% use native ads to increase consumer engagement
62% hope to generate awareness or buzz
There are a number of ways to measure the success of native ads:

70% of brands and 66% of publishers measure success by traffic
44% of brands and 49% of publishers measure success by social media sharing
62% of agencies’ brand clients measure the time spent engaging with content
Native ads perform better than traditional banner ads:

Purchase intent of those who click on native ads is 52% compared to only 34% for banners
People who click on native ads have higher brand loyalty (32%) than those who click on banners (23%)

Stay current on the evolution of native advertising. Contact MDG Advertising today at 561-338-7797 or visit http://www.mdgadvertising.com.

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  • 1. $ SPONSORED UPDATES FEATURED CHANNELS TRUEVIEW IN-STREAM ADS PROMOTED SPONSORED TWEETS BY CELEBRITIES AND PUBLIC FIGURES PROMOTED TWEETS NEWS FEED ADS SPONSORED STORIES PROMOTED TRENDS 23% 32%52% 34% With savvy online consumers less interested in passive promotion and more interested in active conversation, native advertising is gaining traction. In this online advertising model, paid or branded content is displayed alongside other content in similar format, matching both form and function to engage consumers and increase their likelihood of clicking on the ads and sharing them with others. It’s a symbiotic relationship making consumers, publishers, brands, and advertisers happy. With consumers’ social media and mobile technology use steadily on the rise, native advertising’s potential is vast. HOW NATIVE WORKS FOR BRANDS AND CONSUMERS THE REASONS NATIVE STRATEGIES ON SOCIAL MEDIA NETWORKS TO INCREASE CONSUMER ENGAGEMENT TO GENERATE AWARENESS OR BUZZ 67% 63% 62% 48% 43% What motivates brands and marketers to use native advertising over more traditional forms of advertising? TO PROVIDE MORE RELEVANT MESSAGING TO CREATE WORD OF MOUTH TO GARNER MORE BANNER AD ATTENTION FACEBOOK TWITTER YOUTUBE PINTEREST LINKEDIN NATIVE SUCCESS Most publishers, brands, and marketers view traffic and social media sharing numbers to define their native wins. 70% 66% BRANDS PUBLISHERS 62%44% 49% BRANDS PUBLISHERS AGENCIES’ BRAND CLIENTS MEASURE EFFECTIVENESS VIA TRAFFIC DATA MEASURE SOCIAL MEDIA SHARING MEASURE TIME SPENT ENGAGING WITH CONTENT OTHER WAYS TO MEASURE SUCCESS: The number of times the story has been viewed online or in social media The number of people who have read the story STORY IMPRESSIONS STORY READS DISPLAY AD IMPRESSIONS TIME SPENT ON THE STORY (i.e., engagement) 3/4 OF PUBLISHERS OFFER SOME TYPE OF NATIVE ADVERTISING ON THEIR SITES. OF PUBLISHERS SAY THEY HAVE AND/OR ARE CONSIDERING ADDING NATIVE ADVERTISING TO THEIR SITES. 90% News feed Facebook ads vs. traditional rightrail sidebar placements garner: CLICK-THROUGH RATES 49x HIGHER COST-PER-CLICK 54% LOWER GENERATING CLICK-THROUGHS AT A LOWER COST People who click on native ads have higher purchase intent. IMPROVING PURCHASE INTENT BUILDING BRAND LOYALTY People who click on native ads have higher brand favorability. NATIVE BANNER NATIVE BANNER SOCIAL MEDIA MONITORING SCALE MOBILE PHOTO AND VIDEO APPS THE NATIVE FUTURE Thus far, publishers are the main force behind content use, with 62% of publishers currently offering native advertising with others close behind. 41% 34% AGENCIES AGENCIES 20% PLAN TO USE NATIVE ADS WITHIN THE YEAR 12% BRANDS BRANDS More than 700 ADVERTISERS are taking advantage of Buzzfeed’s native ad units. CURRENTLY USE NATIVE ADVERTISING Forbes touts that 20% of its 2013 revenue came from its BrandVoice platform – their native advertising offering. Expect the Federal Trade Commission to keep a close eye on native ads and adjust guidelines accordingly. Social media’s advertising market, including mobile, is expected to reach $11 billion in 2017. 42% of that projected ad spend will be on native advertising. Native ad networks attempt scalability by embedding content teases in websites with clicks that lead to sponsored content. Native ads excel in putting your brand front-and-center on mobile screens. WITH HIGH CONSUMER/BRAND ENGAGEMENT RATES AND NEW REVENUE SOURCES FOR PUBLISHERS, NATIVE ADVERTISING PRESENTS A HUGE OPPORTUNITY FOR BOTH MARKETERS AND PUBLISHERS. Mobile ads now account for 53% of Facebook’s ad revenue. 43% of global Internet users have shared photos in the past month. Instagram, Pinterest, Vine, and Snapchat could offer the most compelling types of native ads because the sites are centered around the use of photos. by: @MDGadvertising want to learn about products70%OF INTERNET USERS THROUGH CONTENT VS. THROUGH TRADITIONAL ADVERTISEMENTS. INSTREAM NATIVE ADS COMPLEMENT CROSSDEVICE CAMPAIGNS, functioning seamlessly across mobile and desktop platforms. Sources: Business Insider, AdAge, SearchEngineWatch.com, e-Marketer, IZEA, Hexagram, Online Publishers Association, Facebook Q4 Earnings, Google, Mashable, New York Times, Sharethrough