How to Do Native Advertising Right

January 26, 2015

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Looking back over 2014, media did well implementing native, as did the brands who got the chance to tell their stories… but it’s unclear how well readers are faring, or who, if anyone, is looking out for them. So I hopped back to the m/Age, where the editors take a look at native‘s past, present and future.


Reposted with permission:


2014 was an important year for native advertising. Native advertising spending was up nearly 47 percent according to eMarketer, and is expected to continue with double-digit year-over-year growth to 2018 and beyond.


For us at the m/Age, though, the milestone was really that the contentious adtech topic was elevated by three key factors to the national discourse. John Oliver hilariously scrutinized it on his hit show on HBO, it made The New York Times some serious cash, and it was blocked from Snapchat by COO Emily White.


Possibly the best news for media outlets was that The New York Times added 16.5% to its overall revenues in Q3 from selling native advertising. This windfall nearly offset the Gray Lady’s losses from print subscriptions. Other publications like The Huffington Post, Mashable, The Atlantic and LinkedIn have realized similar results. Great. Right?


Who native is really geared toward now


Perhaps giving the topic its broadest exposure to-date, John Oliver drew the nation’s attention to the crumbling Chinese Wall separating editorial content and advertising. Between jokes, he underscored a potentially fatal shortcoming of native ads: many readers can’t distinguish between a native ad and editorial content.


For some advertisers, this ambiguity may be part of the draw to run native advertising. The thinking is that brands get to tell their stories and to draw readers in to engage with an aspect of the brand. Media also benefit, by opening up a new and sometimes, lucrative, new revenue stream. But that doesn’t consider the crucial role and power of the users.


Which leads us to Snapchat’s decision not to deploy native advertising. The decision was based on the company’s belief that native ads are, “’really confusing to users,” and that, “[readers] don’t like to be tricked.’” Ms. White is right to consider the user experience first and foremost. It’s not enough for native ads to benefit publishers and advertisers; they must be useful to readers, or risk going the way of the pop-up ad.


Years ago, media and advertisers regarded pop-ups as the next great way to monetize content. No matter that they were wildly intrusive to users. This led in the short term to a flourishing ad blocker market, and now pop-ups are rarely used for fear of upsetting users. Smart advertisers and media outlets have embraced this lesson, and applied it to their approach to native advertising by focusing on the user’s needs.


The role native should perform


In order for native advertising to be effective, it must provide value to users. Too often, for example, the “Related Links” section at the end of an article points the reader to “Lose weight fast!!” or other spammy articles that have nothing to do with the article the reader just finished, and they feel intrusive, irrelevant, or annoying.


Sponsored content often forgets the readers’ needs entirely, focusing on the brand’s mission rather than what might actually interest readers. An example of this is the famous misstep by The Atlantic running a native ad on the Church of Scientology’s successes, which its readers rightly protested. An article on what it’s like to be a member of the Church, rather than being so blatantly self-serving would probably have resonated better with that audience.


How to do native right


Serving the right content at the right time and place to the right user is not easy. On one hand, there’s a data and privacy issue – where not enough is understood about user behavior to deliver exactly the right ad content. At the same time, we also need enough native content to serve the breadth of interests of users. When analytics and native content breadth combine to adequately serve the needs of readers, we will see the best native ads become content.


On the other hand, the Instructables community has gotten this mix right with its authentic, transparent approach to branded content. Community members know that when they visit the site, they will be exposed to some of the best and brightest minds in the maker community. Instructables visitors look for inspiration and advice, and a vibrant and appreciative audience for their hacks, crafts, and accomplishments.


When brands such as Intel and RadioShack establish an outpost on Instructables, they engage with audiences in a way that is authentic to the community and gives the user what they want. This kind of engagement often takes the form of a contest, where users are invited to submit projects whose requirements are laid out by the brand. Advertisers like that their brand is at the center of the experience in a way that is not intrusive, and users enjoy the challenge, expressing themselves and the joy of creating something. This joy is enhanced by the brand, and no one was misdirected or misled into taking part.


What needs to happen now


Snapchat’s Ms. White was right to hold the user experience as the top concern for her community. It will take time for most media and communities to experiment with how they engage with their users authentically that reflects the brand, and that enriches the user experience. But this is the process by which native or digital advertising will ultimately succeed or fail.

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