What is Native Programmatic Advertising?

Native programmatic advertising has recently emerged as a very important tool. By blending naturally with the Internet’s environment and incorporating user information from intelligent algorithms, it has combined mobile content creation and delivery. But then what is it? Why might you want to use it as part of your marketing strategy or business model, for instance? Read on for everything you need to know about native programmatic advertising and why you should give careful consideration to incorporating this powerful form of marketing into your own plans.

What is Native Programmatic Advertising?

Native programmatic advertising takes two important elements of modern digital marketing and brings them together:

Native Advertising

Ads that are designed to match the way a platform looks, feels, and works, and the materials in which they appear. Unlike traditional banners or pop-ups, these types of ads are part of the user experience flow, so they are less abrupt. As such, we can expect a better user engagement.

Programmatic Advertising

The automated purchase and sale of ad inventory using artificial intelligence (AI) techniques and machine learning. In this process, advertisers bid in real time (RTB), so as to reach their audience most efficiently.

The combination of these two elements is native programmatic advertising. Systems automate the cost per installation (CPI) or CPC (costs per click) that will be targeted to your audience for maximal effect at appropriate times and locations while offering yet another seamlessly integrated experience for users… all of it.

Examples of Where You’ve Seen It

Have you ever seen “Sponsored” on one of your favorite news sites? Or come across an Instagram promotion that fits with the aesthetics of your feed? In these instances, we are seeing native programmatic advertising.

Why is Native Programmatic Advertising Important?

Today’s consumers are tired of being interrupted by intrusive and irrelevant advertising. Statistics show that entrusting a matter to wait for 70% of Internet users generates displeasure. Native programmatic advertising effectively tackles this problem, introducing an atmosphere in which ads come naturally and fit within context–meaning much higher engagement next time around, when people see them.

Key Benefits

The following are the top reasons for businesses to switch to native programmatic ad forms:

Less Disruptive

Native ads blend with their hosting platform and do not normally disrupt or offend users.

Precision Targeting

By means of programmatic technology, advertisers can tap into their audience data to target the right people (age group, interests, behavior, etc)

Much Higher Engagement Rates

Native ads typically enjoy click-through rates about 10 times greater than traditional display ads. That is because the ads are designed to dovetail with the user’s interests.

Good Brand Image

Due to its relevance and non-intrusiveness, native ads can promote brand image and help to build trust with your audience in the long run.

Higher Return on Investment

By displaying ads to the right audience in the right environment, businesses waste far fewer impressions and consequently increase their return on advertising spend.

How Does Native Programmatic Advertising Work?

To explain how native programmatic works, let’s break the process down into three simple steps:

The Real-Time Bidding Process

When a user arrives at a website or app, programmatic systems analyze the user’s data in real time. This includes data on their browsing habits, location, and interests. At the same time, the advertisers are placing bids on showing their ad to that user.

Dynamic Placement of Native Ads

The winning ad will be presented in a format native to the platform. For instance, on a fashion blog, this might mean that the ad appears simply as a “recommended article” about the current trends.

Ongoing Monitoring and Optimization

Marketers can analyze campaign data in real time and continually test different creatives and formats to attain the best performance possible.

Where to Place Native Programmatic Ads?

Native programmatic works well across a range of platforms and forms of content. Here are the most common uses:

Social Media

We are passionate about storytelling. The rich, native culture it delivers is enhanced on platforms like Facebook, Instagram, LinkedIn, and Twitter. An ad that feels like an integral part of the content stream is preferred to 2 simply slotted in off to one side and at a higher level.

Publisher Websites

At major publishers, native programmatic is the norm. Ads across their platforms are seldom clearly marked as such — for example, “sponsored reading” or “related content.”

Video Platforms

Native advertising on video platforms such as YouTube often manifests in the form of in-stream video ads or sponsored recommendations.

Apps & Widgets

Unlikely as it may seem, lifestyle apps to weather widgets, and any other app-functioning format for native ads is organically exposed to users.

Whether you’re a small business or a large enterprise, it’s easy to begin—just follow our step-by-step guide on How to Get Started with Programmatic Advertising.

How to Create a Winning Native Programmatic Strategy

Define Your Goals

Start by deciding what it is you hope to achieve. Is it brand awareness? Conversions? Click-throughs? Your goal will form the shape of your strategy.

Use Data Wisely

Use data tools to understand your customer. The more you know about their behavior and habits, the more targeted you can make your ad.

Invest in Creative

If the content itself is good, native programmatic will be. Spend time to produce top-quality visuals that are also captivating, headlines that whet your audience’s appetite, and a CTA related to relevant content.

Test, Test, and Test!

Run A/B tests on your campaign to see what works best. Try out different formats, visuals, and messaging, and controversy to find the best results.

Measure and Optimize

Keep an eye on metrics like CTR, time spent on site, and conversion rate. Use these data points to continuously fine-tune your ad for better performance.

Challenges and Solutions

Maintaining Authenticity

If native ads appear too much as something being sold, they lose the authenticity that renders them effective. Solution? Pay attention to story and benefit.

With programmatic technology purchasing ads for the technical side, it’s up to your team to discern how creative your audience will find them.

Having his ads appear on pages that are inappropriate for the brand in question is a worry shared by advertisers. To avoid this happening, team up platform operators and demand-side providers who put brand safety at the head of their priorities.

The Future of Native Programmatic

Native programmatic has a bright future: advances in technology will make it ever more innovative and effective. With the advent of immersive content forms, such as AR and VR, native ads could even become part and parcel of these new formats. Add in AI-powered optimization, and marketers will have more tools than ever before to reach their ideal audience.

Should Your Business Get Started With Native Programmatic Right Away?

Serving ads natively feels like they belong in content, it engages users, and results are put in front of them through targeting that is unparalleled in the world of digital marketing.

Native programmatic tools make it possible for anyone, whether a small business or major enterprise, to start pushing
out this powerful ad format. And its resulting impact can be measured.