In the evolving digital marketing landscape, native advertising has become a critical tool for engaging consumers more deeply than traditional ads. In this piece, Anders Lithner, CEO of Brand Metrics, shares insights on the future of native advertising, drawing on new research into the effectiveness of native advertising conducted by his company.
As digital ecosystems grow more complex, marketers increasingly turn to native advertising to captivate audiences. Unlike conventional advertising, native ads blend seamlessly with the content, offering a less intrusive and more engaging user experience.
However, the effectiveness of native advertising has often been debated, prompting the need for more detailed analysis and research.
Anders Lithner and the Brand Metrics team embarked on an ambitious project to analyse the outcomes of 2,000 native advertising campaigns globally measured by the company. The goal is to derive actionable insights to help marketers optimise their strategies and achieve a more significant impact.
Mid-funnel magic: the strength of native advertising
According to Lithner, native advertising shines brightest in the mid-funnel stages of the consumer journey, consideration and preference.
"Native advertising primarily works mid-funnel," Lithner explains. "It's more about attitudinal influence than just raising awareness. You're not just catching eyes, you're making people think and feel something towards the brand."
This mid-funnel effectiveness is pivotal because it's where consumer attitudes are shaped and preferences are formed. Traditional ads may capture attention, but native ads hold it, engaging consumers in a narrative that resonates on a deeper level.
What makes native advertising effective?
From Lithner's perspective, the success of native advertising hinges on storytelling. Brands that can tell compelling stories are more likely to succeed with native ads.
"If the advertiser is Star Wars, Harley Davidson, or Manchester United, their entire brand is a story. They achieve marvellous results with sponsored articles," says Lithner.
Conversely, brands with less compelling narratives, such as pension funds, may find it challenging to engage audiences through native advertising. This means that brands must think a lot about what's going to pull people in.
Patterns of success in native advertising
Brand Metrics' research aims to identify patterns and commonalities among successful campaigns. These insights will enable marketers to understand better what works and what doesn't in native advertising.
Key factors include brand recognisability and the inherent content interest. For example, a compelling traffic driver that aligns well with the brand and interests the target audience can significantly enhance the effectiveness of a native ad.
Educational value for marketers
Lithner believes that the findings from this research will be particularly beneficial for marketers, helping them tailor their native advertising strategies to be more effective and impactful.
Anders Lithner presented the research on stage at the Native Advertising Days 2024, accompanied by his marketing manager at Brand Metrics, Amanda Mattsson.
"This research isn't just about proving points, it's about learning and improving."
The insights presented at Native Advertising Days 2024 equip marketers with the knowledge to use native advertising more effectively. By focusing on storytelling and engagement in the mid-funnel, brands can create more meaningful and lasting impressions on their audiences.
Anders Lithner
CEO, Brand Metrics
(interviewed by Alexander Højfeldt Lund, Native Advertising Institute)
