Content site operators have never been under more pressure to show profitability. As the available ad inventory increases online, marketers can afford to be choosy about where they place their promotional messages and this reality threatens profitability. In the hopes of attracting marketer interest and consumer attention, media companies are offering more native advertising opportunities, a move which may help the bottom line.
Not everyone agrees on the definition of native advertising, but generally speaking, promotions in this format mimic the content the consumer is enjoying on a site. The idea behind native advertising is that the consumer will engage with the promotion before realizing what they are viewing or reading is a marketing pitch. Whether they are Sponsored Stories on Facebook, Promoted Tweets on Twitter, or branded videos on a major news site, native advertising appears to work.
33% of surveyed media agencies say native advertising is effective and another 15% call it much more effective when measuring to key performance indicators. On the other hand, a majority of consumers find this marketing form misleading. The numbers are as follows:
- Sponsored video that pretends to be content 86%
- Advertorials 66%
- Infomercials 61%
- Facebook Sponsored Stories 57%
- Promoted Tweets 45%
Regardless of consumer opinion, marketers seem intent on increasing their investment in the native advertising format. BIA/Kelsey data shows a projected rise in spending from $2.36 billion this year to $4.57 billion in 2017.
Have you experimented with native advertising? Did you have good results?[Source: All Eyes on Native Advertising, Despite Uncertainty. Emarketer.com. 16 May 2013. Web. 27 May 2013]