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Why Is Everyone Talking About Native Ads?

Native ads are advertisements that match the “native” format of the platform or publication. So maybe you’re reading your daily news and you click on an article you think is written by the publication’s editorial staff, but it’s actually an article written by a brand promoting their product.

Since native advertisements are meant to blend in, many think this is misleading to the consumer; therefore, the FTC said native ads must be labeled as such. Now you’ll see “Sponsored Content”, “Ad Sponsorship”, “Promoted by (Company)”, etc. The problem is that a study found that about a quarter of readers didn’t realize an editorial staff member didn’t write the content, even though it was labeled in a clear way.

These numbers are going to rise. And while for now the big companies are taking advantage of this trend, there is opportunity for smaller businesses as well. Inc. Magazine wrote an article on how the smaller companies can get in on this trend. Since native ads depend heavily on strong content, small- to mid-sized companies with talented writers can also have success with native ads.

Native ads are a big source of revenue for media outlets. Forbes for example requires that advertisers spend at least $250,000 on native ads. However, the company claims a money-back guarantee that refunds the advertisers cash if the native ads don’t work. Most likely more publications will offer guarantees such as this one in order to hang onto the big checks coming from big brands.

Native ads are advertisements that match the “native” format of the platform or publication. So maybe you’re reading your daily news and you click on an article you think is written by the publication’s editorial staff, but it’s actually an article written by a brand promoting their product.

If you work in or around technology, then most likely you’ve heard talk of native advertising. There are people rating against it, some arguing for it, and new rules and regulations coming out about it. So, why is everyone talking about native ads and why are the arguments getting so heated?

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