Native Ads vs Display Ads: Which One Is Better for Your Business?

Native Ads vs Display Ads: Which One Drives Better Results?

In the vast landscape of digital marketing, advertisers often face a crucial decision: choosing between native ads and display ads. This choice is not merely a tactical one; it’s strategic, impacting brand perception, engagement rates, and ultimately, ROI. In this blog, we’ll delve into the details of native advertising and display advertising, comparing their benefits and challenges, and help you decide which might be best suited for your business. We are sure to help you make an informed decision.

 

What Are Native Ads?

Native ads are a form of advertising designed to match the look, feel, and function of the media format in which they appear. Unlike traditional ads, they don’t really look like ads and blend in seamlessly with the editorial content, making them less intrusive. Native ads can appear as sponsored articles on news websites, recommended posts on social media, or as product listings on e-commerce platforms. The key to native advertising is that it should be inherently non-disruptive, providing content that adds value to the user’s experience.

 

For example, when you’re scrolling through Instagram and see a sponsored post that looks similar to the regular content in your feed, that’s a native ad. It’s designed to provide a less invasive experience for the user, offering value while encouraging interaction.

What Are Display Ads?

On the other hand, display ads are graphical ads that appear on websites, apps, and social media platforms in designated areas. These ads can include banners, images, or video content and are typically more noticeable compared to native ads. Display advertising often stands out, aiming to catch the viewer’s attention in a more direct way.

 

While display ads are often eye-catching, their interruptive nature can sometimes lead to ad fatigue or banner blindness. That said, Google display ads and other networks allow businesses to target audiences based on their interests, demographics, and online behaviours, making display advertising a powerful tool for visibility.

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Native Ads vs Display Ads: Key Differences

To decide which type of ad works best for your business, it’s important to first understand the key differences between native ads vs display ads.

User experience

 

Native ads: They are subtly woven into the content, providing a more organic experience for the user. They’re less likely to be perceived as intrusive, which often leads to higher engagement rates. Since native ads are integrated within the content, they can feel more relevant and valuable to the viewer.

 

Display ads: On the flip side, they are usually separate from the content and often occupy fixed spaces on websites or apps. They are more visible, but their interruptive nature can lead to a lower click-through rate (CTR), especially with over-saturation.

Ad format

 

Native ads: These ads appear in the form of articles, blog posts, or social media posts, and are typically designed to mirror the format of the surrounding content. This makes them less intrusive but requires careful design and content creation to ensure they don’t disrupt the user’s experience.

 

Display Ads: They appear in banner ads, pop-ups, and video ads. They’re highly visual and typically aim to attract attention through bright colours or motion.

 

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Engagement

 

Native ads: Due to their natural integration with content, native ads tend to have higher engagement rates. Users are more likely to interact with ads that feel relevant and not like traditional advertisements.

 

Display ads: While display ads can be effective in driving brand awareness, they often suffer from lower engagement rates due to ad blindness and their more intrusive nature.

Targeting and reach

 

Native ads: They can be highly targeted, especially on social media platforms like Facebook, Instagram, or LinkedIn. Advertisers can customise native ads based on interests, behaviours, demographics, and more.

 

Display ads: They offer strong targeting options, particularly through Google Display Ads, which allow for precise audience segmentation. However, the targeting is often broader, making native ads more effective for specific niche markets.

Cost efficiency

 

Native ads: They tend to have a higher cost per click (CPC), but their increased engagement and better conversion rates can justify the higher investment. As they are less likely to be ignored, you may end up getting more value for your budget.

 

Display ads: They generally offer lower CPC, making them more affordable for businesses with limited budgets. However, the lower engagement rates could result in wasted impressions, which could affect overall ROI.
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Which One Is Right for Your Business?

 

Now that we’ve looked at the key differences between native ads vs display ads, let’s explore which type of advertising might be more suitable for your business.

When to Choose Native Ads

 

Content-driven businesses: If your business revolves around content creation — such as blogs, media outlets, or influencer marketing — native ads are a great way to engage your audience. By combining it with content, native ads can feel more like an extension of your existing material, offering more value to your users.

 

Branding and awareness: Native advertising is a great choice for brand-building campaigns, as the ads naturally blend with content and don’t disrupt the user experience. Users are more likely to remember a brand that they engage with naturally rather than one that interrupts their experience.

 

Niche markets: If you are targeting a highly specific audience, native ads allow you to deliver highly relevant content in a way that speaks directly to your audience’s needs and interests.

 

Higher engagement: If your goal is to achieve higher user engagement and interactions, native ads are the way to go. Their integration into the content typically results in better CTRs and user interaction.

When to Choose Display Ads

 

Awareness and reach: Display ads are excellent for businesses looking to maximise brand visibility and reach a broader audience. They’re especially effective for new products or businesses aiming to introduce themselves to a large group of potential customers.

 

Retargeting campaigns: If you want to retarget users who have already interacted with your business, Google display ads offer highly effective retargeting options. These ads can be shown to users who have visited your site but did not convert, increasing your chances of conversion.

 

Video or visual content: If your brand relies on strong visuals or video content, display ads are ideal. They allow you to showcase your products in an engaging, attention-grabbing way, leveraging the power of visuals to persuade users.

 

Budget-conscious campaigns: For businesses on a budget, display advertising offers a more affordable option, especially with Google’s expansive ad network, allowing for low-cost, high-visibility campaigns.

Conclusion: Native Ads vs Display Ads

Ultimately, the choice between native ads and display ads depends on your specific business goals, audience, and budget. If your aim is to create a more engaging and non-intrusive experience that aligns closely with the content your audience is consuming, native ads might be the way to go. They offer a seamless experience and higher engagement, making them ideal for content-driven campaigns and niche markets.

 

On the other hand, if your focus is on broad visibility, brand awareness, and reaching a larger audience, display ads provide an effective and cost-efficient option. They work particularly well for retargeting, visual content, and campaigns focused on broad reach.

 

In many cases, a combination of both strategies can be the most effective approach. By using native ads for deeper engagement and display ads for visibility and reach, you can create a well-rounded campaign that maximises both short-term visibility and long-term customer retention.

 

So, the next time you face the native ads vs display ads dilemma, consider your business objectives, the nature of your audience, and the type of campaign you want to run. With the right approach, both native and display ads can be powerful tools in your digital advertising arsenal.

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Frequently Asked Questions

1. What is the difference between native ads and display ads?

Native ads blend seamlessly with content, appearing natural to users, while display ads are separate, graphical ads that are more noticeable and can be intrusive.

2. What are the advantages of using native ads for a business?

Native ads offer higher engagement, a non-intrusive user experience, better audience targeting, and improved brand recall due to their integration with content.

3. When should businesses opt for display ads instead of native ads?

Businesses should choose display ads for broad brand awareness, visual-driven campaigns, retargeting, and when on a budget, as they offer more visibility and reach.

4. How do native ads and display ads impact audience engagement?

Native ads generally result in higher engagement due to their seamless integration with content, while display ads may suffer from lower engagement due to their interruptive nature.

5. What are the costs associated with native ads vs. display ads?

Native ads tend to have a higher cost per click (CPC) but offer better engagement and ROI. Display ads are usually more affordable but can have lower engagement rates.

Suhail Bajaj

Suhail Bajaj is the CEO of BrightBrain Marketing Technologies LLP that has now grown into a full-fledged digital marketing agency with 55+ employees and clients from 7+ countries – all under his supervision. Graduated with an MBA from the esteemed Cass Business School, he brilliantly puts his learnings into practice, helping brands meet their business goals and succeed in a digital-first world.

Suhail Bajaj

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