Native advertising and display advertising are two common forms of digital advertising. Both aim to promote brands and products, but take different approaches. Understanding the key differences can help advertisers choose the best options for their campaigns.
What are native ads?
Native ads match the visual design, format and style of the surrounding content on a platform. They flow seamlessly into the user’s experience, looking and feeling like natural content rather than disruptive promotions. Some examples of native ad formats include:
- Sponsored content – Articles, videos, infographics etc created by or in partnership with a brand. They integrate into a publisher’s normal content.
- Sponsored social media posts – Organic looking posts in social media feeds.
- Recommended product listings – Curated product or content recommendations that appear targeted based on user data.
- In-feed ads – Directly in the main content feed, using the same general layout as normal posts.
The goal of native advertising is to grab attention by blending into the surrounding content rather than sticking out like a sore thumb. This leads to higher click-through rates compared to intrusive display ads. However, as native ads don’t look like typical ads, they also require clear labeling to avoid deceiving readers.
What are display ads?
Display ads are highly visible blocks that stand out from normal content. Some common display ad formats include:
- Banner ads – Rectangular images or graphics, typically horizontal.
- Interstitial ads – Full page ads that cover the interface.
- Pop-up/pop-under ads – Appear in separate browser windows.
- Wallpaper ads – Brand imagery plastered across the background.
- Text ads – Text-based without images or graphics.
- Video ads – Short video clips, sometimes skippable.
Display ads are designed to grab immediate attention with eye-catching elements. However, many users find them disruptive or annoying. Ad blocker usage is commonplace, limiting the reach of display ads.
Key differences
Some key differences between native and display advertising:
| Native Ads | Display Ads |
|---|---|
| Seamlessly blend into normal content | Highly visible and disruptive |
| Feel like natural content recommendations | Look and feel like traditional ads |
| Higher click-through rates | Easy to block with ad blockers |
| Require clear labeling as “sponsored” | Easily identifiable as ads |
Placement
Native ads placements blend seamlessly into content feeds and platforms wherever the user’s eyeballs already are. Display ads often occupy sidebar and banner spaces specifically allocated for ads.
Objectives
Native advertising aims to subtly persuade readers by blending in. Display advertising is laser focused on rapidly driving clicks and conversions.
Metrics
With native ads, click-through rates and branding metrics like recall and awareness are important. Display advertising focuses more on direct response metrics like website clicks, app installs and sales conversions.
Regulation
Native ads require clear visible labeling to avoid deceiving readers, such as “sponsored”. Display ads are already clearly identifiable as promotional content by most users.
When to use native ads
Here are some examples of when native advertising is most effective:
- Promoting thought leadership content – Whitepapers, ebooks, research reports etc benefit from native ads, as they require more subtly than hard selling product ads.
- Raising brand awareness – Native ads promote recall by blending seamlessly with content people want to read.
- Publishers with high quality traffic – Audiences are more receptive to native ads on premium publishers.
- Avoiding ad blockers – Native ads aren’t blocked like display ads.
When to use display ads
Here are some examples of when display advertising is most effective:
- Driving direct response – When the goal is immediate clicks and conversions, display ads perform better than subtly native ads.
- Promotional offers – Time-sensitive deals and discounts are well suited to disruptive display ads.
- Retargeting – Display ads targeted specifically to previous visitors can effectively remind them to return.
- High volume targeting – Display networks can efficiently reach massive volumes through placements on thousands of sites.
Best practices
Here are some best practices for both native and display advertising:
Native ads
- Match the form and function of the surrounding content.
- Create highly relevant and useful content.
- Clearly label sponsored content as native advertising.
- Target platforms with premium engaged audiences.
- Monitor click-through rates and completion rates as key metrics.
Display ads
- Use eye-catching images, graphics and headlines.
- Ensure fast load times – under 2-3 seconds.
- Link clearly to landing pages for conversions.
- Keep branding and offers simple and impactful.
- Focus on response metrics like CTR, actions and conversions.
Conclusion
Both native and display advertising can be highly effective. Native ads blend seamlessly into content for more natural recommendations. Display ads use interruption marketing to drive immediate clicks and actions. Advertisers should test both approaches and utilize the formats that best support their specific audiences, content and goals.
When creating native advertising, match the surrounding content format and focus on creating useful relevant content. With display ads, distill the message down to compelling images and short impactful copy.
Measuring success looks different as well – native ads should be optimized for branding lift and engagement, while display focuses on direct response. Used strategically, both native and display advertising can complement one another to increase awareness, consideration and conversions across the customer journey.
