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What Programmatic Native Advertising Is and How It Works

April 4th, 2024 | 2 min. read

By Kim Kovelle

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A black-and-white image of a person using a laptop, with a programmatic native ad highlighted on the screen in yellow.

Digital ads are everywhere — cluttering margins and interrupting screens. That’s why programmatic native ads stand out by blending in.

You’ve likely seen them in “article rolls” on content sites, promoting related stories. They’re an ideal way to capture attention subtly, and they can be very effective.

But are they right for you? Since 2020, Zoe Marketing & Communications has helped businesses navigate digital marketing strategies, including programmatic native advertising.

Here’s what you need to know to make an informed decision.

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5 things to know about programmatic native ads

1. What are programmatic native ads?

Programmatic native advertising has two key parts:

  • Programmatic: An automated process of buying and placing ads using bidding algorithms.
  • Native: Ads that blend with the surrounding content to appear more organic.

These ads don’t look like traditional ads, but they’re clearly labeled. Their goal? To direct users to informative content on your website, rather than pushing a hard sell.

Here’s a sample of how this story looks on Yahoo News:

Programmatic native ad example on Yahoo News

And here’s how these ads typically operate:

  • They appear as a link to an article on another website.
  • When clicked, they take users to your blog or content page.
  • They work on both desktop and mobile.

2. How they work: targeting and placement

Programmatic technology automates ad placements, ensuring they reach the right audience at the right time.

  • Behavior-based targeting: Ads appear on thousands of high-quality websites based on users’ interests and browsing history.
  • Precise audience reach: Viewers see content that aligns with their online behavior, making them more likely to engage.
  • Wide visibility: Your ad might show up on news sites, weather sites and trending content platforms (e.g. CNN, Daily Mail) — where your prospects are already scrolling.

3. Benefits of programmatic native ads

One major perk is higher click-through rates (CTR) compared to traditional display ads.

Art - Programmatic Native Ads

  • Native ad CTRs can average 0.2% to 0.8%, compared to 0.05% to 0.1% for traditional banner ads. That’s 3-5 times higher.
  • They increase engagement since they feel like a natural part of the content experience.
  • They improve brand visibility and trust.
  • They enhance SEO by driving traffic to your website’s content.

4. Challenges to consider

While effective, programmatic native ads come with trade-offs:

Average Costs of Native Programmatic

  • Costs can be higher:
    • CPM (cost per thousand impressions): $5-$15 for standard campaigns; premium targeting can exceed $20.
    • CPC (cost per click): $1-$3, depending on industry and targeting.
  • They focus on visibility, not direct sales: Expect traffic and brand awareness rather than immediate conversions.
  • Quality matters: Weak content won’t perform well — investing in high-quality blogs is crucial.

5. Best practices for success

To get the most from your campaign:

  • Promote your best content: Choose high-performing, informative articles to drive traffic.
  • Create clear, compelling ads: Use crisp images, concise headlines and engaging language.
  • Avoid clickbait: Headlines should be honest and relevant to the content users will land on.
  • Set up retargeting: Once someone clicks your ad, follow up with targeted ads to keep your brand top of mind.
  • Monitor and adjust: Analyze CTRs and engagement rates to refine your approach over time.

Next steps for programmatic native advertising

If your company has quality content, native ads can be a powerful tool to boost visibility and site traffic. They work best as part of a multichannel marketing plan, helping prospects discover your brand in a natural way.

Thinking about programmatic native ads? Talk to Zoe Marketing & Communications. We help businesses drive engagement with digital ads, and we can help you strategize for success.

Still weighing your options? Check out these resources:

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Learn how digital ads can help your business, including the tools, techniques and strategies to create successful campaigns.

Kim Kovelle

As Zoe Marketing & Communications’ content manager, Kim Kovelle brings over 20 years of writing and editing experience in metro Detroit. She has strong roots in community journalism and a knack for making complicated topics make more sense.