What is Programmatic Native Advertising?

These days, digital ads pack the margins of our content and pop out to gobble our screens. And, in all this ruckus, programmatic native ads stand out for, well, not standing out.

I often see these ads — I’m sure you do too — on content websites in “article rolls” that promote related stories for further reading. They’re an ideal way to catch people’s eye subtly. And they can be very effective, says Michele Potts, sales director of Zoe Marketing & Communications.

“They’re labeled as ads, but viewers don’t register them as traditional ads,” says Potts, who has 15+ years of experience with these ads. “They help to increase your brand trust and credibility.” But will they work for you?

To answer that question and unravel this marketing option, we’ll cover a few key points: 

• Understanding programmatic native ads
• How it works: the tech and where it appears
• Benefits of programmatic native advertising
• Challenges with programmatic native ads
• Best practices to keep in mind

We’ll also show a few examples to bring the concept to life. You’ll walk away with a sound understanding of programmatic native ads — and if they might be right for you.

1. Understanding programmatic native ads

First, let’s break down the phrase. Programmatic native advertising has two key parts:

• Programmatic: This refers to an automated process of buying and placing ads on, most often, various websites and apps with an automated bidding system.
• Native: This refers to the ads being designed and placed to blend in with the content of the websites and apps on which they appear.

“It’s a strategy that’s non-intrusive and content-driven,” says Potts. Content-driven because the ads steer people to informative content (usually blogs) on your website.

Here’s a sample of how some of these stories look on Yahoo News:

And on the website for Metro Parent, one of Zoe’s sister companies:

As you can see, programmatic native looks and feels like natural content — though it does have an “ad” identifier on it. A few key points on native:

• Typically it appears as a link to an article on another website/app
• When people click it, it takes them to an article on your website
• It works on both desktops and mobile devices

Plus, crucially, it’s tailored to viewers’ interests using programmatic technology. That makes it more efficient and precise. Let’s take a closer look at that next.

2. How it works: the tech and where it appears

“Programmatic” is a method that automates the buying and placing of ad space. It uses data and algorithms to target ads more efficiently, based on viewers’ interests.

“You wind up reaching specific audiences at the right time and in the right context,” Potts says. “This boosts the odds they’ll find your ads more relevant — and they’ll be more likely to click.”

The ads appear on an “inventory” of thousands of reputable websites. Placement is based on people’s behavior, so you can’t control where the ads appear. But the websites all serve high-quality content (think news sites like CNN, trending sites like Daily Mail, weather sites, etc.).

3. Benefits of programmatic native advertising

One of programmatic native’s biggest perks is higher click-through rates, or CTRs. While it can vary by industry, audience and context, the CTR for native ads can be 3 to 5 times higher than standard display ads.

“I have seen an average CTR range of around 0.2% to 0.8%,” Potts says. “This is considerably higher than traditional display ads, which often are around 0.05% to 0.1%.”

She shares the example of working with a YMCA in Upstate New York. It had quality content on its website, but it wasn’t getting many page views. “We used native to drive more traffic to the site and help them get in front of a brand-new audience,” says Potts. Native ads work because:

• They’re more relevant and less disruptive to the user experience
• They improve engagement rates
• They use algorithms to optimize ad placements in real-time based on behavior
• They allow for better targeting and efficiency 
• They boost your visibility and branding
• They help build up your search engine ranking

4. Challenges with programmatic native ads

Native ads also have challenges that are worth considering. “The cost can trend higher, and the core benefit is visibility — not instant sales,” Potts explains. So, keeping expectations in check (and doing multichannel marketing to meet other goals) is essential. Broadly:

• For CPM (cost per thousand impressions), costs can range $5-$15 for standard campaigns, but premium placements and highly targeted campaigns can exceed $20.
• For CPC (cost per click), rates may range from $1 to $3, influenced by the industry, ad quality and targeting.

Keep in mind, though, that while programmatic native can be pricier upfront due to the tech and data analysis involved, its efficiency and effectiveness can offer a higher return on investment.

“It’s also important to ensure your ad content is high-quality to avoid damaging trust or user experience,” adds Potts. That means you may need to invest in content marketing, too.

5. Best practices to keep in mind

To maximize your success with programmatic native advertising, consider these tips:

• Identify existing articles that are top performers and especially educational or interesting. “Remember, the idea is to drive people to your website,” Potts says.
• Create relevant, engaging ads. Make sure the images are sharp and the headlines are clear.
• Grab people’s attention with crisp action language and compelling details. Consider strong storytelling and personal narratives. Avoid sensationalism or “clickbait.”
• Set up a retargeting campaign and pixel on the articles you’re promoting. This means related ads will follow or “retarget” people after they visit your article.
• Use programmatic native ads’ targeting responsibly, respecting your users’ privacy.
• Regularly measure and adjust your campaigns based on performance data to help ensure the best outcomes.

Next steps for your programmatic native advertising

If your company has quality content, native ads can be a wise choice to build visibility and drive traffic to your website. These ads appear subtly — yet clearly labeled — to your ideal prospects on various websites. And they’re typically just one part of a well-rounded marketing plan.

Looking to expand your visibility with programmatic native? Talk to us. Zoe can help boost your current content with digital marketing — or create content for future programmatic native ads.

Either way, keep exploring your options for content promotion and retargeting in these articles:

• How to promote your content in 4 essential ways
• What retargeting ads are and why they matter