Native Advertising Pros and Cons
Over the past couple of years most major brands have been utilizing Native Advertising in conjunction with display and banner ads to expose more people to their products and services.
Many smaller businesses have either been unaware of the shift or felt that the longer sales cycle wasn’t cost effective. Current research shows no businesses large or small can financially afford not to begin Native Advertising.
In fact, nearly half of all millennials, a full “46 percent of millennials who noticed branded content say they consumed the content,” and “One-third of those millennials shared the branded content”, according to Yahoo’s Marissa Mayer. Compare that to traditional banner ad click through rates which dropped from 9% in 2000 to 0.2% in 2012. “Native experiences beat their traditional display counterparts in almost every metric,” she said.
According to Mayer:
• Viewers of native ads are 3.6 times more likely to perform a search for a brand than viewers of traditional display ads.
• Viewers of native ads are six times more likely to do a related search.
• 46 percent of millennials who noticed branded content say they consumed the content.
• One-third of those millennials shared the branded content.
So What Are The Pros of Native Advertising?
As mentioned above Native Advertising is much more effective than banner advertising. By providing useful, informative and interesting content potential customers learn to like, know and trust you.
The traditional sales pitch is dead. People tend to discount information that is provided by a banner ads whereas information presented in a narrative, story-format, tends to get read and shared. The sharing aspect of Native Advertising compounds the value of each dollar spent on the Native Advertising program. The bonus in Native Advertising is that once you have a new customer who Knows, Likes and Trusts you they are more likely to be a repeat customer and provide referrals and positive reviews.
Native Advertising Pros
- Proven More Effective Than Traditional Advertising
- Creates a Feeling Of Authenticity (the Know, Like and Trust aspect)
- More ‘Shareworthy‘ Content Makes Native Advertising More Cost Effective Per View
- Greater Potential for Repeat Purchases, Positive Referrals and Reviews
Native Advertising Cons
- A Learning Curve Adjusting from “Advertising” to Relationship Building
- Longer Sales Cycle As You Build A Long-term Relationship
- Higher Upfront Costs In Developing Shareworthy Content Versus Just “Placing an Ad”
Is there still a place for traditional advertising? If the extent of your advertising is a flashy “Sale” sign in your storefront window then your can stick to what you know. However, if you are currently advertising in print and online you’ve probably already found out that old school advertising has become less and less effective without also telling your story through native advertising and providing interesting and informational content to drive your story, and your value, home.
If you’d like to learn more about Native Advertising please fill out the form below or call us at 844-2- Localista!