Undecided whether to choose native ads vs display ads for your campaigning efforts? Each has its own strengths, and knowing which type of ads is best for your goals is the key. In this post, we’ll help you figure out which one might be right for your business! So let us get started!
Table of Contents
What are Native Ads?
Native ads are paid content that blends in naturally with the platform. Hence, sometimes you might not notice they’re sponsored!
To capture users’ attention, they adapt to the design, look, and feel of websites without interrupting their browsing experience. Instead of bombarding users with sales pitches, native ads aim to deliver value and relevance.
Native ads come in three main forms: In-feed/In-content ads, Content recommendation ads, and Branded Ads.
What are Display Ads?
Display ads or banner ads (most popular is Google Display Ads) are the most popular type of advertising. They often pop up at the top of the page, on the side, or between paragraphs of text with colorful visuals.
You can also find display ads with interactive elements, like video, audio, and clickable elements, known as rich media ads.
The main purpose behind these colorful ads is to get more people familiar with a brand, pull in visitors, and stimulate interest that could lead to new leads.
Key Differences Between Native Ads and Display Ads
Curious about which ad format works best? In this section, we’ll explore the main differences between native ads and display ads and reveal how each can work uniquely to capture attention.
1. Appearance
The appearance of an ad can significantly impact user engagement. Let’s see how native ads and display ads differ in design and how these differences affect their effectiveness.
Display Ads
Display ads are distinctive from the website’s content. They appear in noticeable formats like banners, sidebars, or pop-ups. Their design and placement make them visually distinct, drawing attention but sometimes disrupting the user experience.
Native Ads
In contrast, native ads blend naturally with the website’s content. They match the site’s look to feel like part of the regular content. This natural integration makes native ads less disruptive and more engaging for users.
Conclusion
Display ads are the right format to quickly promote new special offers or raise brand awareness. However, if you need to enhance the user experience without interrupting their browsing, you should choose native ads.
The choice depends on whether your goal is to stand out or blend in with the content.
2. Goal
The goals of your campaign determine which ad format to choose. Here, we’ll break down the distinct purposes of native ads and display ads.
Display Ads
Display ads are widely used for their ability to drive brand visibility. Banner ads can increase brand awareness by 21% and attract valuable top-of-funnel traffic.
Thus, you can use display ads to reach users who have already shown interest and drive them back to the site because they are particularly effective in retargeting efforts.
Native Ads
Native ads are more targeted for specific campaign objectives. They excel at driving traffic to content, websites, or landing pages, especially for lead capture.
Native ads are also effective in boosting purchase intent and strengthening brand affinity, which enhances consumer perception and connection with the brand.
Conclusion
Display ads are ideal when the goal is to capture broad attention or re-engage visitors. Meanwhile, native ads should be used when the objective is to drive deeper engagement, improve brand perception, or direct traffic to specific content, such as product pages or lead-generation forms.
>>> Read more: Rewarded Video Ads: Pros, Cons & Best Tips To Get Started
3. Placement
The placement of an ad can determine its effectiveness. Learn how different placements influence audience engagement here!
Display Ads
Advertisers usually place display ads in fixed areas on a webpage, such as banners at the top, sidebars, or pop-ups. These positions are designed to stand out in users’ browsing process.
Display ads appear on various platforms, including websites, mobile apps, and social media feeds. The placements are often determined by algorithms or the advertiser’s preferences.
Banner ads on a news website’s homepage, video ads before YouTube content, or pop-ups on an e-commerce site are typical examples of display ads.
Native Ads
Native ads are embedded directly into the content of a page. You can see them in a content feed, within text, or in suggested articles at the end of the page. Native ad placements are designed to enhance the user’s browsing experience rather than interrupt it.
Examples of native ads are sponsored articles on a news site, in-feed ads on social media platforms, and content recommendations at the bottom of a blog post.
Native ads may also appear as “related content” on publishing sites or as sponsored product listings on e-commerce platforms like Amazon.
Conclusion
Display ads are placed in highly visible areas like banners, sidebars, or pop-ups, while native ads appear in formats like in-feed posts, sponsored articles, or content recommendations for less intrusive placement.
4. User Experience
User experience is vital for ad effectiveness. In this section, we’ll compare how native ads and display ads influence user interaction.
Display Ads
Display ads can disrupt the user experience, as they visually stand out from the natural browsing experience, especially in the form of pop-ups or auto-play videos.
Many users have then developed “ad blindness” due to overexposure to ads. This means they subconsciously ignore banner ads, pop-ups, and other overt placements to focus on their main task.
Native Ads
Native ads, in contrast, are often seen as non-disruptive and therefore draw more attention. In an eye-tracking study by Sharethrough and IPG Media Labs, participants were found to consume native ads more similarly to editorial content in terms of time spent viewing.
Conclusion
Your choice should align with how much disruption the audience is likely to tolerate. To better enhance user experience, you should choose native ads and deliver valuable content to develop positive associations with the sponsored product.
5. Engagement Rates
In this session, we’ll show you how native ads and display ads differ in boosting user interaction and engagement.
Display Ads
Display ads are intended to capture users’ attention quickly and immediately, but this may not necessarily lead to deeper interaction.
Metrics for display ads include click-through rates, impressions, and viewability. While they can deliver scale, the click-through rate (CTR) is typically very low, at 0.05%.
Native Ads
Native advertising drives users to visit and click more using content that is relevant to the host page.
Some indicators of engagement include click-through rates (CTR), time on content, social shares, and others. Native ads often have a better click-through rate (CTR) than display ads at 0.2%. This CTR can even increase to 0.38% for premium mobile-native ad formats.
Furthermore, 53% of consumers view native ads more frequently than display ads. This means native ads can deliver a higher brand uplift and consideration than display ads.
Conclusion
Display ads are best suited for campaigns focused on reaching a large audience quickly and maximizing visibility. However, this means you have to bear a low engagement rate.
Hence, if you want to achieve higher click-through rates and enhance brand perception, native ads are an ideal option.
6. Targeting
It is crucial to choose the ad type supporting suitable targeting options. Here we’ll compare the targeting capabilities of native and display ads.
Display Ads
Display ads target users based on demographics, interests, and online behavior. Advertisers can select specific audiences by factors like age, gender, location, browsing history, and other personal data.
This precise targeting is effective for reaching a broad or specific group based on available data but can sometimes feel disconnected from the content being viewed.
>>> Read more: What Is Interstitial Ads? Comprehensive Guide For Beginners
Native Ads
Native ads target users based on contextual relevance. Instead of relying on user data, native ads align with the surrounding content to them feel more natural to the user’s experience.
Conclusion
Display ads are suitable for targeting specific audience segments based on detailed demographics and behaviors. They work well with direct targeting and awareness campaigns.
Native ads, however, should be used when you want to engage users based on the content they are currently consuming.
7. Cost
So, which ad type is more affordable? This section will explore the cost differences between the two ad types to help you maximize your budget.
Display Ads
On the Display Network, display ads have an average cost per click (CPC) under $0.58. Your ads on Facebook can range anywhere from $0.5 to $10 per click.
Standard banner ads can cost as little as $0.10 to $2.00 per click, though premium placements can be more expensive. The banner ads have a median CPM range of $6-$12.
Native Ads
On average, advertisers can expect to pay between $0.1 to $0.5 per click for their native ads, or $3 to $7 per 1000 impressions, depending on the network and campaign parameters.
On Facebook, native ads often have CPM rates from $5 to $10, which are pricier than standard display ads. The cost per mille (CPM) for native advertising ranges between $4 and $20, depending on the format used.
Conclusion
While display ads are suitable for campaigns that prioritize cost-efficient visibility and simplicity, native ads are much more cost-effective because the CTR is often higher.
Since ads are typically purchased on a cost per thousand (CPM) basis, the higher amount of clickthroughs can drive down your cost per click (CPC).
| Feature | Display Ads | Native Ads |
|---|---|---|
| Appearance | Distinct from the website’s content | Blends in the website’s content |
| Goal | Raise brand visibility | Boost purchase intent & improve brand affinity |
| Placement | Fixed areas on a webpage (banners, sidebars, pop-ups) | Integrated into content feeds, texts, or as suggested articles |
| User Experience | Can be intrusive and disruptive | Non-intrusive |
| Engagement rates | Lower | Higher |
| Targeting | based on demographics, interests, and behavior | based on contextual relevance |
| Cost | $0.10-$2.00 per click; CPM $6-$12 for banners. | $0.10-$0.50 per click; CPM $4-$20 depending on format. |
Native Ads vs Display Ads: Which One to Choose?
Still unsure whether native ads or display ads are right for you? Now, we’ll explore different situations when each format will work best for your campaign goals!
When to Use Display Ads?
Display ads are a versatile tool for driving visibility and engagement. Below are the specific situations where display ads can be most effective for your marketing strategy!
#1 Broad targeting to raise awareness
If your brand is looking to increase visibility, display ads are ideal options. The bold, contrasting nature of the ads will give a strong first impression to target customers.
Because they appear on almost every web page and app, your brand will be seen by as many people as possible.
For example, a beauty clinic can use display ads on beauty blogs and lifestyle websites to showcase its services. The goal is to make people feel familiar with the brand.
#2 Targeting a Niche Audience
Since display ads segment audiences by demographics, interests, or location, they are suitable tools to reach niche groups. The precise targeting ensures the ad reaches users who are most likely to be interested in the product.
If your product is a premium yoga mat designed for serious practitioners, for instance, display ads enable you to target websites often visited by yoga enthusiasts.
#3 Retargeting Previous Site Visitors
Re-engaging visitors who leave your site without buying is a great strategy to keep your products in their consideration. Display ads are an ideal option because they can show personalized ads based on previous interactions with the site.
For example, a visitor browsed a specific pair of shoes on your site but didn’t purchase them. Display ads can then showcase those shoes when they visit other websites. This targeted approach serves as a reminder for them to return and complete their purchase.
When to Use Native Ads?
Native ads are ideal for integrating your brand into relevant content, building trust, and driving more meaningful interactions. In the following sections, you will know when native ads can be the most effective choice.
#1 Having a Tight Budget
Native ads are more cost-effective compared to traditional display ads. Since their ability to blend into content increases engagement, they generate higher CTR which drives down CPC.
Furthermore, native ads are purchased on a cost-per-thousand (CPM) basis. This means you’re paying for the ad to be displayed a certain number of times, regardless of whether someone clicks on it. This often costs less than paying for clicks (CPC), where you’re charged each time someone engages with the ad.
#2 Amplifying Brand Content
It has become harder for advertisers to amplify their messages using SEO because it takes a long time for content to appear in search results and improve rankings. Thus, advertisers can opt for native ads to reach target audiences faster through various websites.
Unlike SEO, native ads blend into the content users are already engaging with, making them more likely to be seen and interacted with immediately.
#3 Focusing on Social Media Advertising
Social media platforms such as Facebook, Instagram, and LinkedIn are suitable for native ads to integrate. According to Outbrain, 53% of consumers trust native ads on social media. Thus, you should run native ads if you promote products mainly on social media.
A sponsored post in your Instagram feed or an in-feed ad on Facebook can all look like a genuine recommendation. This seamless integration leverages the close connection users feel with these platforms.
Wrap Up
Both native ads and display ads have their specific advantages. While display ads are more effective at creating awareness, targeting niche audiences, and retargeting visitors, native ads are best at driving organic engagement and ensuring brand trust.
Knowing the exact differences between these two ad formats will help you select the best one for the specific needs of your campaigns. This brings us back to your goals, audience, and budget before connecting with the target market through your ads.
