This is an excellent primer from VentureBeat on not just “Native” but also on the fledgling world of native exchanges. The development and adoption of native marketplaces will lead the way for delivering native solutions at scale. The exchanges will make it easier for editors to maintain control over what appears on their sites and for advertisers and brands to operate with transparency and the knowledge that their brand will only be run alongside AAA content.
From the article:
Native exchanges abide by the same biddable auction structure, but the inventory being bid on is one of the newly recognised native ad formats, such as an in-feed ad or recommendation widget. The key benefit of these new native formats is that they are placed where audiences are already actively looking for content; a study from IPG Media Labs showed that audiences look at native ads 53 percent more frequently than display ads.
“We know that marketers’ greatest loss in value is most often inattention to ads,” said Kara Manatt, vice president of consumer research strategy at the IPG Media Lab, and co-author of the new research.
Whether native ads will continue to hold consumers’ attention once their uniqueness wears off is another question, but, as Manatt added: “Past research shows us that neither overly intrusive nor easily ignored ads are effective … This study validates that we are on the right path to finding that middle ground.”