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The Psychology of Native Advertising - Why It Works

Why Native Advertising Works 
Online consumers are constantly bombarded with all sorts of display advertisements. This leads to "banner blindness" and people end up either blocking or ignoring ads. In answer to this, a lot of marketers have turned to native ads for their online advertising strategy.

Native ads are already everywhere: from social media platforms like Twitter, Facebook, and Instagram to renowned publications like the New York Times, Forbes, and the Wall Street Journal. By the end of 2020, advertisers are expected to allocate more than two-thirds of their display advertising budgets exclusively to native ads.

Why are native ads so popular among advertisers? The answer is simple. A typical internet consumer's brain reacts to native ads better than to more traditional means of online display advertising, such as banner ads.

Native ads receive more visual focus

A study by Sharethrough and Nielsen brought out some fascinating insights about how native ads compare to banner ads when consumed on a mobile device. The study found that native ads receive twice as much visual focus as banner ads. A reader processes banner ad using his or her peripheral vision (similar to how they process images). As a result, the reader may overlook important taglines that are part of the banner ad. Conversely, the headlines of a native ad—if properly optimized—can trigger meaningful associations with the brand.

Native ads can influence readers at a subconscious level

Unlike banner ads which appear at the top or side of a web page, native ads are displayed in a reader's feed, forcing them to engage with the content and actually consume it rather than just taking a passing glance. Through this type of exposure, the conscious mind actively focuses on and engages with the content, making positive associations between the wording in the ad and the assets or benefits the brand is highlighting. This then influences the subconscious mind as the positive connections made by the conscious mind slide into the subconscious, strengthening the reader’s positive perception of the brand. Researchers believe this is an essential element of advertising because our subconscious plays a key role motivating us to choose which brands to buy from. 

Consuming native ads uses both sides of the brain

Consuming a banner ad—usually an image—uses the right side of the brain, (i.e., the part in charge of multitasking and image processing). When a person consumes a native ad, however, they’re processing both text and images, which involves both the right side and the left side of the brain. Since the entire brain is used, a reader's involvement with a native ad is much more comprehensive and meaningful than when they see a banner ad: They engage with native ads more deeply, retain more information from them, and are more influenced by them when making purchase decisions. 

Native ads look and feel like content being consumed

Traditional online display advertising like banner ads distract from the user experience, causing the reader to block them mentally. This means that the company paying for the ads is throwing their advertising dollars into an internet black hole.

But with native advertising, the ads don’t take the shape of a typical ad: They’re displayed in the same format as the rest of the content on the website or app. This results in ads that are non-disruptive, presenting information to the reader in a way that doesn’t feel glaring or intrusive, and that doesn’t pull them out of their reading experience. On top of that, the ads are seamlessly displayed within (or immediately after) web content that the viewer is already consuming, making them more contextual. Thanks to the format and the placement of native ads, the consumer will be more inclined to take a desired action like clicking on a link or exploring the topic further.

Optimize your advertising dollars with native ads

Native advertising has captured the attention of businesses worldwide and shows no sign of slowing down. To make the most of your advertising dollars, it’s time to get on board. 

But for your native ad to be effective, it needs to be relevant, contextual, and solution-oriented. If that all sounds a little overwhelming, why not get our experts behind you? The Brax team can help you with your native ads every step of the way—from creation to optimization to scaling.     

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Brax Data Services

Brax Data Services | Native Advertising | Scoop.it

At Brax, we provide cutting-edge data mapping algorithms to ingest, organize, and visualize your revenue so you can focus on scaling your ad spend and ROI.

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Managed Media Buying Services

Managed Media Buying Services | Native Advertising | Scoop.it

That is exactly what Brax helps you do, manage everything for native ads in one place.

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Product Tour | Brax

Product Tour | Brax | Native Advertising | Scoop.it

Find out more about how Brax can help you manage campaigns across multiple platforms like Taboola and Yahoo Gemini, achieving optimal results by designing and targeting the best native ads at relevant consumers.

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Brax.io

Brax.io | Native Advertising | Scoop.it

Brax is a native advertising platform for bulk management, unified reporting and rule-based goal optimization across sources. Brax streamlines content syndication across Yahoo Gemini, Outbrain, Taboola, Revcontent and others.

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Native Ads Optimization Process

This is a guide on a proven process to achieve success with advertising on native ad networks. It is based around getting each part of the ad experience journey optimized to maximize results. Get a head start on succeeding with your native advertising following this guide.

Phase 1 - Optimize Creative Angles

Goal: Get your CTR to .50 or above

First is to create ads and run for three to seven days then review. Check your ad stats to see if your ads are showing on the ad network, this is impressions and your campaign is spending money which indicates ads are getting clicked.

After three days, if the click thru rate (CTR) is below 0.5%+ CTR then pause the ads.

Create new ads in the same campaign and monitor for impressions & clicks again. If impressions drop or slow down then pause the campaign. Create a new campaign with new ad creatives. If the ads did not get over 100,000 impressions try testing them again in the new campaign.

Repeat this until you get an ad with a CTR above 0.5%. 

How many ads should you put in a campaign at once?

• Outbrain: up to 50 ads 
• Taboola: up to 50 ads 
• Yahoo Gemini (Oath): up to 100 ads
 • Revcontent: up to 10 ads (5-10 active at a time) Use the above numbers as a rule of thumb for each ad network.

When testing a native ad network, the hardest part tends to be finding an ad creative that works.

Phase 2 - Optimize Landing Page Engagement/Conversion

Goal: Get your Micro-conversion CPA break even
Once you've gotten the ad creative CTR in acceptable territory work on your landing page engagement and conversion. Some people jump to placements here, but I'd caution against that because a placement might perform poorly at this stage because of a poor landing page content layout or copy.

If you need to keep your budget tight, then consider optimizing the landing page with a few placements that show promise. Then open the gates wider once you have optimized.

However, if you have the budget, don't restrict yet because you will get better data by not restricting. Just keep your daily budget with a cap that you are comfortable spending to learn where there is an edge for you.

Now I recommend having a landing page with a click through for download/opt-in/purchase. Then measure this CTR. You want to get this to 20% as a rule of thumb.

If people are not clicking thru, they are not going to pull out a credit card and purchase so this is a good way to judge performance pre-purchase.

Phase 3 - Optimize Placements

Goal: Get your CPA profitable

The third step is to optimize placements.

Whether you make a new campaign or keep the one that is going is up to you. I recommend a new one because it will be "clean" with none of the history from when you were making landing page changes.

With a winning creative and proven landing page, you can start adjusting bids by site placement. Here are the buckets I place site placements:

• Non performers/no conversions 
• Below Target 
• Above Target

Non performers are sites with high bounce rates or no conversions after a certain spend over 7-14 days. Usually an exclusion list is created to block going forward.

Below target are sites that are break-even or below within 2x the cost per action goal. This is where you want to focus bid adjustments to get the placements to the cost per action target.

Above target are sites that are above break even of the cost per action goal. Usually an inclusion list for campaigns that only run on these placements is created after 14-30 days.

Phase 4: - Scale

Goal: Get more volume within acceptable CPA range (profitable) 

The final step is to scale to your limits. Then you have the awesome project of figuring out how to increase your limits :D 

Areas you can scale:

• Increase budget of existing efforts (countries & devices) 
• example: Inclusion campaigns with max budget 
• Add new locations 
• Expand to new devices
• Expand to another native network (get Taboola working, then add Outbrain, then add Yahoo Gemini) 
• Target more broad interests • Add new creatives / landing pages

A final note on scaling spend, once you have things tuned in don't get excited and double budgets. Trying to turn the dial too fast is a common reason for a campaign to flip upside down on ROI. Turn things up slowly and keep your team resources in mind, getting native right takes time.

Get a Head Start 
Here is a starter pack to help you implement the above process with all the shortcuts and research done for you.


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Manage Native Ad Networks in One Place with Brax

Tired of Spending Your Entire Day in Outbrain, Taboola and Revcontent on Repetitive Optimization Tasks?

Are you logging into Outbrain, Taboola or Revcontent to create the same ads over and over? 

Do you set reminders to check budgets and change bids each day?

Spending too much time blocking publishers and adjusting bids? 

Let’s get honest.

Once you get past $5k/month in ad spend on native it becomes a burden of work. 

The interfaces were not built for pro media buyers like you.

Do you limit yourself to one ad network a day because it is just too time consuming otherwise? 

Here is a typical workflow.

Go into the campaign, click on sites, export the data. 

Match it up with some conversion data, then filter to see what needs blocked. 

Then you go into backstage again and scroll through page by page, searching to find each publisher to block.

Then repeat for the next campaign. 

Sound familiar? 

And it is time consuming, error prone and a total pain! 

Here is another scenario:

You create a campaign on Taboola that targets mobile US traffic for iOS. Then create ads in the worst experience ever. 

Now you get to do it again for mobile US android and desktop. Want to target another country? 

Or do this for more than one landing page?

Lucky you, get to repeat all that work over and over. This is just launching the campaigns. 

Three days later you are faced with a list of 5,000 sites that sent traffic you get to sort through to block or adjust.

And you get to do that for every single campaign you just made. 

Then again for whitelist campaigns and new discovery campaigns.

 Then again for Oubrain and Revcontent. 

 For 2-3 campaigns this might work. 

 It quickly gets out of hand.

What if you could have your conversion and cost data in one place, 
already matched? 

 And could define when to block sites once, then run that across every campaign, every day or week? 

Would that completely change the way you work with Outbrain, 
Taboola and Revcontent? 

 That is exactly what Brax helps you do, manage everything for native ads in one place.

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Create the Best Native Ads by Knowing Your Audience

Big Data has gotten some bad press (and a bad rap) lately. But in reality, the oceans of customer-specific information that come with it can be used by marketers in many positive ways.

One of the most compelling arguments for drilling down into demographic data involves understanding your audience: Who are they? Where do they live? What could your products or services do to meet their needs and eliminate their pain points? And how can you ensure these people help you meet your goals, from generating leads to driving transactions?

The best native ads succeed by understanding their audience and speaking directly to individuals rather than adopting a one-size-fits-all approach. Below, we discuss three factors you need to keep in mind when you’re creating your next native ad campaign.

Bring your audience into focus

It’s rare that a national native advertising campaign can speak to all audiences and be equally effective across the board. Even if your products or services have comparable appeal in New York and Nevada, placing native ads in front of every audience demographic without assessing its relevance to those groups means you’re squandering your budget.

To ensure you don’t waste your money, you have to get to know the audience you’re trying to reach. For instance, if your business involves renting out designer prom dresses, your target audience will mainly comprise teenage girls and their moms. Advertising to over-65s or young professional males is unlikely to yield much in the way of results. Equally, if your dress rental business is based in one location, geotargeting will ensure your ads only display to people within a realistic driving distance.

The best native ad platforms all offer different ways to conduct audience segmentation. This guide by Outbrain explains how to create a custom audience for new campaigns and how to retarget existing users. Outbrain recommends creating audience segments of at least 30,000 users, which can be refined using various demographics including geotargeting, platform/operating system, and even whether people have installed ad-blocking software.

Visualize your consumers

One way to decide who to target is by creating a few fictional profiles. We recently explored how to develop these target personas. In the prom dress example, you might create two profiles—a style-conscious girl in senior year at a large school, and a forty-something mom with a comfortable financial status and a teenage daughter living at home. Both are likely to be reachable through Facebook-owned social media platforms, and both are more likely to respond to branded content than traditional advertising. Indeed, a study by Harvard Business Review reported consumers are often enthusiastic about engaging with the best native ads, provided that their personal information has been used in a respectful way.

Once you’ve established who you’re targeting, it’s much easier to determine when they’ll need your services and what obstacles might stand in the way of them completing a transaction. Teenage girls will almost exclusively be using mobile devices—which helps to narrow the focus of a native campaign—and they’re more likely to be connected via iOS than Android. They’ll be looking to create the perfect prom experience, so a native ad image showing a group of girls laughing while wearing designer dresses will appeal to their desire to look good and enjoy prom.

Run with the differences

It’s also important to recognize that a mom and daughter might react to the same ad in markedly different ways. The daughter might share a striking native ad with her friends to share the excitement of seeing a designer dress. Meanwhile, the mom is more likely to be interested in how much it costs, because she’ll probably be paying for it!

Building on this last point, it’s a good idea to develop multiple campaigns, each focusing on a different aspect of your business offer. The dress-wearing prom attendee will be focused on exclusivity and style, so native ads should lead with arresting images and appeals to the heart. A separate campaign targeting the parents could focus more on more practical matters, or incentives like free collection and delivery. That’s irrelevant to a teenager who can’t drive, but it’s a factor that’s potentially a deal-clincher (or deal-breaker) for a parent who’s strapped for time.

Solving problems, one click at a time

The best native ads are tailored around an identified audience demographic or multiple demographics. They’ll resonate with the audience’s needs or resolve their pain points, whether in a new campaign or by retargeting existing campaign-clickers.

Find out more about how Brax can help you manage campaigns across multiple platforms like Taboola and Yahoo Gemini, achieving optimal results by designing and targeting the best native ads at relevant consumers.

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The Psychology of Native Advertising - Why It Works

Why Native Advertising Works 
Online consumers are constantly bombarded with all sorts of display advertisements. This leads to "banner blindness" and people end up either blocking or ignoring ads. In answer to this, a lot of marketers have turned to native ads for their online advertising strategy.

Native ads are already everywhere: from social media platforms like Twitter, Facebook, and Instagram to renowned publications like the New York Times, Forbes, and the Wall Street Journal. By the end of 2020, advertisers are expected to allocate more than two-thirds of their display advertising budgets exclusively to native ads.

Why are native ads so popular among advertisers? The answer is simple. A typical internet consumer's brain reacts to native ads better than to more traditional means of online display advertising, such as banner ads.

Native ads receive more visual focus

A study by Sharethrough and Nielsen brought out some fascinating insights about how native ads compare to banner ads when consumed on a mobile device. The study found that native ads receive twice as much visual focus as banner ads. A reader processes banner ad using his or her peripheral vision (similar to how they process images). As a result, the reader may overlook important taglines that are part of the banner ad. Conversely, the headlines of a native ad—if properly optimized—can trigger meaningful associations with the brand.

Native ads can influence readers at a subconscious level

Unlike banner ads which appear at the top or side of a web page, native ads are displayed in a reader's feed, forcing them to engage with the content and actually consume it rather than just taking a passing glance. Through this type of exposure, the conscious mind actively focuses on and engages with the content, making positive associations between the wording in the ad and the assets or benefits the brand is highlighting. This then influences the subconscious mind as the positive connections made by the conscious mind slide into the subconscious, strengthening the reader’s positive perception of the brand. Researchers believe this is an essential element of advertising because our subconscious plays a key role motivating us to choose which brands to buy from. 

Consuming native ads uses both sides of the brain

Consuming a banner ad—usually an image—uses the right side of the brain, (i.e., the part in charge of multitasking and image processing). When a person consumes a native ad, however, they’re processing both text and images, which involves both the right side and the left side of the brain. Since the entire brain is used, a reader's involvement with a native ad is much more comprehensive and meaningful than when they see a banner ad: They engage with native ads more deeply, retain more information from them, and are more influenced by them when making purchase decisions. 

Native ads look and feel like content being consumed

Traditional online display advertising like banner ads distract from the user experience, causing the reader to block them mentally. This means that the company paying for the ads is throwing their advertising dollars into an internet black hole.

But with native advertising, the ads don’t take the shape of a typical ad: They’re displayed in the same format as the rest of the content on the website or app. This results in ads that are non-disruptive, presenting information to the reader in a way that doesn’t feel glaring or intrusive, and that doesn’t pull them out of their reading experience. On top of that, the ads are seamlessly displayed within (or immediately after) web content that the viewer is already consuming, making them more contextual. Thanks to the format and the placement of native ads, the consumer will be more inclined to take a desired action like clicking on a link or exploring the topic further.

Optimize your advertising dollars with native ads

Native advertising has captured the attention of businesses worldwide and shows no sign of slowing down. To make the most of your advertising dollars, it’s time to get on board. 

But for your native ad to be effective, it needs to be relevant, contextual, and solution-oriented. If that all sounds a little overwhelming, why not get our experts behind you? The Brax team can help you with your native ads every step of the way—from creation to optimization to scaling.     

No comment yet.