Small businesses should create a native advertising strategy in 2019 to get ahead of the curve and engage with customers with high-quality content and online experiences they won’t associate with traditional, outbound advertising.
In this article, we explore how native advertising is beneficial to small businesses and examine how much they should spend on native advertising. Use this guide to jump-start your native advertising efforts in 2019.
The Value of Effective Native Advertising
Before your small businesses invests in native advertising, you need to understand its value and what real, effective native ads looks like.
If effectively planned and executed, native advertising can be a positive experience for consumers that drives high-quality traffic to your website.
According to a report by Hubshout, a majority of people are more likely to click on sponsored articles than banner ads. Specifically,
68% of people say they have read a sponsored or promoted article at some point.
73% of people who have read sponsored or promoted content think it has as much or more value than organic content.
Almost all people (85%) say native ads do not impede their user experience on websites.
The New York Times is an excellent example of how well-done native advertising can provide an appealing, positive experience for readers.
The only distinguisher of its sponsored nature is the small “paid post” banner at the top.
A positive native ad experience is similar to high-quality content marketing, in that it provides value to the consumer through the quality and and relevance of the content – its text, production, and presentation.
When executed well, native advertising can attract and retain consumers’ attention in the same way as content marketing.
Small businesses that understand the value and appeal for native advertising need to consider how it can fit in their advertising strategy.
Native Advertising Expands Audience and Brand Awareness
Native advertising can expand your audience, drive traffic, raise brand awareness, and boost conversion rates.
Specifically, native advertising provides visibility and awareness that produce positive brand association. These include:
Paid search ads that place you at the top of high-value search engines results pages (SERPs)
Content that provides expert advice or information that attracts customers
As more people use ad blockers and traditional ads receive less attention, native advertising provides a solution for brands trying to break through the noise.
How Much Should Your Small Business Allocate to Native Advertising?
Creating a marketing budget for your small business depends on a variety of factors:
Digital and social media channels your target customers prefer
Revenue and budget
Small businesses with annual incomes under $5 million and revenue margins of 10% to 12% typically spend 7% to 8% of their revenue on marketing, but only one-fourth of that budget is typically dedicated to brand development such as native advertising.
Native advertising, though, requires significant investment. To produce content that people will engage with and genuinely enjoy, your small business needs to invest significant time and budget to its production.
Of course, budgets aren’t always flexible or negotiable. If you have a hard budget ceiling, give careful consideration about how how you divide your native advertising budget. It’s better to publish a small amount of high-quality content than large quantities of content that get low results.