The Evolution of Native Advertising: A Startup’s Guide to Driving Growth

Native advertising is not just for established giants; it’s a powerful tool for startups looking to make a significant impact. Originating from a 1910 Cadillac advertorial in The Saturday Evening Post, native advertising has grown into a sophisticated strategy used by top brands like Michelin, Mercedes, Land Rover, Nestlé and Red Bull.

Today, it’s equally essential for startups seeking to build brand awareness and engage with their target audience.

This guide will help startups understand native advertising, its benefits and how to craft effective native ads to propel their growth.

What Is Native Advertising and How Can Startups Use It?

Native advertising involves the paid placement of content that blends seamlessly with the platform it appears on, making it feel natural and engaging to readers. For startups, this means creating ads that promote a product or service and provide real value to the audience. Since native ads match the style and tone of the publication, they are less intrusive and can drive better engagement compared to traditional ads.

Native advertising offers a unique opportunity to reach new audiences through established media outlets, gaining credibility and visibility without the need for a large-scale advertising budget.

Linking Startups and Publishers: A Collaborative Effort

In a competitive media landscape, publishers need exceptional content to attract and retain audiences, creating an opportunity for emerging companies. The key is collaboration between brands and publishers: startups bring unique marketing goals and audience insights, while media outlets bring journalistic expertise and an in-depth understanding of their readership.

This partnership is facilitated through brand content studios – dedicated departments within media organisations focused on crafting native advertising. These studios help ensure that native ads are not only aligned with editorial standards but also effectively engage the audience. For startups, working with these studios means creating ads that resonate with readers while meeting the high expectations of both parties.

Addressing Sceptics of Native Advertising

Scepticism about native advertising often drives innovation and maintains high standards, ensuring that these ads uphold quality journalism. Despite concerns, research shows native ads can outperform traditional ads in engagement. For instance, studies by Sharethrough and IPG Media Lab reveal that even when readers know content is sponsored, native ads still achieve higher engagement rates. Additionally, Stanford University research indicates that while consumers recognise native ads, these ads continue to influence behaviour significantly.

High-quality native advertising is a win-win for everyone: It provides valuable content to readers, compensates journalists for their work and helps businesses connect with new customers effectively. As advertising evolves, native formats offer a balanced approach that serves both consumer interests and commercial goals.

Strategies for Startups to Create Effective Native Advertising

Crafting effective native advertising requires a blend of creativity, strategic planning and a deep understanding of both the brand and the audience. Here are key strategies to ensure success:

  • Know Your Audience: Understand who you are targeting and what resonates with them. Tailoring your content to address their specific needs and interests can make your native ads more effective.
  • Align with Content Style: Ensure that your native ads match the tone and format of the host publication. This alignment makes your content feel like a natural fit rather than a disruptive ad.
  • Focus on Quality: High-quality content is key. Invest in compelling writing, visuals and multimedia to deliver value and capture attention.
  • Maintain Transparency: Clearly label your native ads to build trust with readers. Transparency about the sponsored nature of the content helps avoid any potential backlash.
  • Tell a Story: Use storytelling to create a connection with your audience. Engaging narratives can drive emotional responses and increase engagement.
  • Include a Strong Call to Action: Direct readers on what steps to take next, whether it’s visiting your website, signing up for a newsletter or making a purchase.
  • Monitor and Optimise: Utilise analytics to track the performance of your native ads. Adjust your strategy based on what works best to maximise your results.

Native Advertising Examples

The Guardian and Unilever

The Guardian and Unilever's sustainable living campaign featured native content about environmental sustainability, aligning with The Guardian's editorial focus on green issues and providing readers with valuable information while promoting Unilever's sustainability initiatives.

Johnson & Johnson and the Rwanda Ministry of Health

Johnson & Johnson partnered with the Rwanda Ministry of Health to raise awareness about the efforts of Rwandans in addressing mental health. The content includes images of the local community, structured around text blocks and videos featuring statistics and interviews.

Entrepreneur and Intro

Entrepreneur collaborated with Intro to establish the “Ask an Expert” initiative, enabling the audience to schedule personalised one-on-one video calls with world-class experts, offering Entrepreneur's audience the opportunity to connect with mentors.

The New York Times and Netflix

The New York Times partnered with Netflix to create a multimedia campaign centred on women in prison, promoting the series "Orange Is the New Black". The piece, focusing on female incarceration, blended seamlessly with the publication's investigative journalism style, and it was one of the first to come from the Times’ Brand Studio unit, which was built to create native ads for advertisers.

Looking Ahead: The Future of Native Advertising for Startups

Native advertising will continue to be a crucial tool for startups, with projections indicating it will become a $400 billion industry by 2025. The future of native advertising lies in its ability to adapt to changing consumer behaviours and technological advancements. For startups, staying ahead will involve leveraging data insights, maintaining authenticity, and aligning brand values with audience interests to drive meaningful engagement.

Embrace native advertising as a dynamic and effective way to enhance your startup’s visibility and connect with potential customers in an engaging, impactful manner.