For every advertiser, the primary aim is to effectively reach out to potential customers with their products or services. There are various types of advertising models available in the market to achieve this goal, and two of the most common ones are native ads and display ads.
Since both these ad types are widely used, there is often confusion among advertisers about which one to choose for their business. In this article, we will be discussing the key differences between native ads and display ads to help you make an informed decision.
What are Native Ads? 5 Key Benefits:
Native advertising is a form of online advertising that matches the form and function of the platform on which it appears. In simple terms, native ads are the ones that are non-disruptive and fit in perfectly with the look and feel of the website or app they are being displayed on.
You may have come across native ads on social media platforms like Facebook, Twitter, and Instagram, where they appear as regular posts from brands but are advertisements.
They are called “native” because they blend in with the rest of the content on the website or app and don’t look like traditional ads. Even though they are advertisements, native ads are less likely to irritate users as they don’t intrude on the user experience.
At Growth Hackers, we see native ads are like a friendly guest at a party: they join the conversation naturally without interrupting the flow. Native ads have many advantages like:
1. Offer a better user experience
The fact that native ads don’t interrupt the user experience is their biggest advantage. Since they are designed to look like regular content, users are more likely to pay attention to them and even click on them. This is why native ads have a higher click-through rate than other ad formats.
2. Are less intrusive
As we mentioned before, native ads are less intrusive and don’t interrupt the user experience. They are designed to look like regular content and not stand out as an ad.
This makes them more effective as users are more likely to pay attention to them. Even though they are ads, users don’t feel like they are being bombarded with marketing messages. You may have come across native ads on social media platforms like Facebook, Twitter, and Instagram, where they appear as regular posts from brands but are advertisements.
3. Can be customized
Native advertising can be customized to match the look and feel of the website or app it is being displayed on. This makes it more effective as it doesn’t look out of place and blends in with the rest of the content. At Growth Hackers, we design native ads on a weekly basis that perfectly match each platform’s style, boosting effectiveness without disrupting the user experience.
This is one of the reasons why native ads are more effective than banner ads, as they can be designed to fit in with the overall look and feel of the website. Even if users don’t click on the ad, native ad campaigns are more likely to remember it as it doesn’t look like a traditional ad.
4. Foster trust
Native ads also help foster trust as they appear on websites and apps that users already trust. This is because users are more likely to believe a message from a source they trust.
It has already been established that users don’t like ads that interrupt their user experience. This is why banner ads are often ignored as they disrupt the user experience. Before working with Growth Hackers, one of our tech clients relied on intrusive ads; after we help them use native advertising strategically, they built trust and connected with their audience more effectively.
On the other hand, native ads are less likely to be ignored as they appear on websites and apps that users already trust. This fosters a sense of trust between the user and the brand, essential for any business.
5. Can be targeted effectively
Native ads can be targeted effectively to reach the right audience. They can be targeted based on users’ interests, demographics, and even behavior. Growth Hackers once ran a native ad campaign for one of our B2C clients where precise targeting delivered higher engagement and conversions than any previous efforts.
This ensures that your ad reaches the right people who are more likely to be interested in your product or service. It also helps save money as you don’t have to pay for ads that your target audience will not see.
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What are Display Ads? 4 Advantages:
Display advertising is a type of online advertising that uses visuals like images, videos, or animations to promote a product or service. Display ads are also known as banner ads and are one of the most common types of online advertising.
They are usually placed on websites, apps, or social media platforms and can be in the form of text, images, videos, or even animation. Businesses often use display ads to raise brand awareness or promote a new product or service.
At Growth Hackers, we’ve helped startups, small businesses and enterprise companies harness display ads to boost visibility and capture attention across websites, apps, and social platforms. Display ads have many advantages like:
1. Can be highly effective
Display ads can be highly effective in raising brand awareness or promoting a new product or service. This is because they are visually appealing and can capture the attention of users easily.
Plus, they can also be placed on websites or apps that receive a lot of traffic, ensuring that your ad reaches many people.
2. Can be customized
Display ads can be customized to target a specific audience. For example, you can target users based on their location, age, gender, interests, or even the type of device they are using. This ensures that your ad reaches the right people and is more likely to generate leads or sales.
3. Are relatively affordable
Display ads are relatively affordable compared to other types of online advertising like search engine marketing (SEM) or social media marketing (SMM). You only have to pay when someone clicks on your ad (CPC), making it a cost-effective option for businesses.
Additionally, display ads can be a great complement to your SEO or SMM campaigns as they can help in increasing brand awareness and generating leads or sales.
4. Make sense for most businesses
Display advertising makes sense for most businesses, especially if you want to raise brand awareness or promote a new product or service. For example, if you launch a new product, you can create a display ad campaign to target potential customers and generate leads.
Even if you are not looking to promote a new product or service, you can still use display ads to reach a wider audience and drive traffic to your website.
Growth Hackers once helped a growing business launch a display ad campaign that brought new customers and increased traffic almost immediately. Or, if you are looking to drive traffic to your website, you can place display ads on high-traffic websites or apps.
6 Key Differences Between Native Ads and Display Ads
Now you know what native ads and display ads are. It’s time to take a look at the key differences between these two types of online advertising:
1. Intrusiveness
The first difference between native ads and display ads is the level of intrusiveness. Native ads are less intrusive than display ads since they fit the host website or app’s interface. On the other hand, display ads are more intrusive as they usually stand out from the rest of the web page content.
The old saying goes, “one man’s meat is another man’s poison.” The same thing goes for online ads. While some people may find native ads less intrusive and more relevant, others may find them difficult to distinguish from normal content.
2. Targeting
The second difference between native ads and display ads is the targeting options. Native ads offer more targeting options than display ads. This is because native ads are usually served through programmatic buying, which uses data-driven targeting.
On the other hand, display ads are often sold through direct deals between publishers and advertisers. As a result, they offer fewer targeting options. Before partnering with Growth Hackers, one of our beauty clients missed their ideal audience. After we analyzed targeting options, we used the right ad format to hit the mark every time.
3. Performance
The third difference between native ads and display ads is the performance. Native ads tend to perform better than display ads in click-through rate (CTR) and conversion rate. This is because native ads are less intrusive and more relevant to users.
When it comes to cost-per-click (CPC), display ads perform better than native ads. This is because display ads are often sold through direct deals, which gives advertisers more control over who sees their ads and how much they pay for each click.
At Growth Hackers, we’ve seen firsthand that native ads often drive higher engagement, while display ads deliver cost-effective clicks, helping brands optimize performance.
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4. Format
The fourth difference between native ads and display ads is the format. Native ads come in various formats, such as in-feed, in-article, and in-ad. On the other hand, display ads are only available in the form of banner ads. Even if there are other display ads, such as interstitials and sliders, they are not as common as banner ads.
The interactive elements of native ads make them more engaging than display ads. This is why native ads have a higher CTR than display ads. Further, the ad placement of a native ad is also more flexible than that of a display ad (banner ad).
5. Pricing
The fifth difference between native ads and display ads is the pricing. Native ads are usually priced on a cost-per-impression (CPM) basis. This means that advertisers only need to pay when their ad is shown to users. On the other hand, display ads are usually priced on a cost-per-click (CPC) basis. This means that advertisers need to pay each time a user clicks their ad.
6. Availability
The last difference between native ads and display ads is availability. Native ads are available on various platforms, including social media, news websites, and video streaming platforms. On the other hand, display ads are only available on a limited number of platforms, such as websites and apps.
The ad blocking software is also a factor that affects the availability of display ads. According to a report by PageFair, 26% of internet users use ad blockers. This number is expected to grow in the future, further reducing the availability of display ads.
Final Words on Native Ads vs. Display Ads
In today’s digital advertising, native ads and display ads are the two most popular types of online advertising. Each of them has its advantages and disadvantages.
As a business owner, you need to carefully consider your needs and objectives before deciding which type of online ad is right for you. If you want to generate more leads and sales, native ads would be a better choice. If you want to create brand awareness or reach a wide audience, display ads would be better.
At last, we want to say that there is no winner between native and display ads. It all depends on your needs and objectives. You need to decide which type of targeting is more important for your business objectives in your marketing strategy.
Whichever you choose, just make sure that your ads are well-designed and relevant to your target audience. Thanks for reading!
Growth Hackers is an award-winning display advertising agency helping businesses from all over the world grow. There is no fluff with Growth Hackers. We help entrepreneurs and business owners effectively use native ads and display ads, generate qualified leads, optimize their conversion rate, gather and analyze data analytics, acquire and retain users and increase sales.
We go further than brand awareness and exposure. We make sure that the strategies we implement move the needle so your business grow, strive and succeed. If you too want your business to reach new heights, contact Growth Hackers today so we can discuss about your brand and create a custom growth plan for you. You’re just one click away to skyrocket your business.
