The Native Advertising Advantage

The Native Advertising Advantage, Build Authentic Content hat Revolutionizes Digital Marketing and Drives Revenue Growth, by Mike Smith, McGraw-Hill 2017

Just what is native advertising?  Mike Smith, the senior VP of revenue platforms and operations at Hearst Magazines Digital Media says that native advertising, a less obvious approach to selling, is taking over traditional methods - ads, promos, commercials.  "People continue to find new ways to skip ads - whether through DVRs where users can fast forward through commercials or by watching shows on Netflix or Amazon, which have no commercials because users pay a subscription fee, or by using ad-blocking apps on their web browsers."  According to Smith, the more we use ad blockers or simply turn off the device, the more important it becomes for sellers to discover new ways to get their messages through. 

Smith cites further statistics that show how important native advertising is becoming in comparison to traditional ad revenues:

Compared to traditional display ads, native advertising is more effective:  25% more consumers looked at sponsored (branded) article than display ad units; 

Native advertising spending in the US is expected to increase from $1.3B in 2013 to $9.4B in 2018.

There is, however in the midst of the Fake News noise, a big question about journalistic integrity, a question that will stay with us at least through the next election cycle:

"Today, with some exceptions, such as The New York Times T Brand Studio and Forbes BrandVoice, the line between journalism and advertising has faded," he says.  "With the increase in native advertising, the line may disappear completely as the two sides collaborate more and more in the service of advertisers and the business."

What brands are doing it well?

Some bands are ahead of others, but the author cites Goldman Sachs, State Farm, and J.P. Morgan Chase.  Ford, Toyota and Lexus are auto brands doing well. For consumers looking to understand the difference between traditional journalism and ads, this shift is puzzling.  In fact, Smith says that "most people prefer to read ads that don't look like ads."  !!!  Among the mixed messages consumers see every hour, Smith uncovered some consumer frustration as readers could not determine what would be called native advertising vs. traditionally identifiable messages.