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Have you considered sponsored content as part of your marketing mix? Research suggests it could be a worthwhile addition to your marketing efforts.

What is Sponsored Content?

Sponsored content, also known as native advertising, is a form of online advertising that matches the look and feel of the platform on which it appears. Although directly paid for by an advertiser, sponsored content is so tightly interwoven with the site on which it appears that it strikes site visitors as native—hence the term 'native ads'.

The Interactive Advertising Bureau (IAB) defines sponsored content thus: “paid ads that are so cohesive with the page content, assimilated into the design, and consistent with the platform behavior that the viewer simply feels that they belong.”

StackAdapt Native Advertising

Credit: MobileMarketing

Why is Native Advertising Effective?

While native advertising isn't new, it is enjoying a major comeback.

Readers best engage with marketing messages that resemble the content around them. David Ogilvy, the "Father of Advertising", said it well: "It has been found that the less an advertisement looks like an advertisement, and the more it looks like an editorial, the more readers stop, look and read."

More to the point: traditional paid media, such as banner advertising, is becoming less and less effective year-over-year because of banner blindness. Banner ads, once the hallmark of digital advertising, don't perform like they used to. In the United States, the average click through rate (CTR) for display ads is now 0.07%.

As a result, companies are turning to native advertising to promote their brands. And it's proving more successful than traditional online advertising:

  • People view native ads 53% more frequently than banner ads
  • Native advertising can increase brand lift by as much as 82%
  • Native ads that include rich media boost conversion rates by up to 60%
  • Purchase intent is 53% higher when consumers click on native ads

Hardly surprising that spending on native ads is projected to reach $21 billion in 2018!

To learn how native advertising can help you stand out, email us at client.services@hdmz.com.