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Native Advertising Meaning
Product placement (embedded marketing) is a precursor to native advertising. Instead of embedded marketing’s technique of placing the product within the content, in native marketing the product and content are merged. Because of this merger of advertising and content, the legal status of native advertising is uncertain,and the Federal Trade Commission held a workshop on advertorials and other disguised advertising in 2013.
Online Native Advertising Forms
The Interactive Advertising Bureau (IAB), the primary organization responsible for developing ad industry standards and conducting business research, published a report in 2013 detailing six different categories for differentiating types of native advertisements.
- In-Feed Ad Units: As the name denotes, In-Feed ads are units located within the website’s normal content feed, meaning they appear as if the content may have been written by or in partnership with the publisher’s team to match the surrounding stories. A category that rose to popularity through sites like Upworthy and Buzzfeed’s sponsored articles due to its effectiveness, In-Feed has also been the source of controversy for native marketing, as it is here the distinction between native and content marketing is typically asserted.
- Search Ads: Appearing in the list of search results, these are generally found above or below the organic search results or in favorable position, having been sold to advertisers with a guarantee for optimal placement on the search engine page. They usually possess an identical appearance as other results on the page with the exception of disclosure aspects.
- Recommendation Widgets: Although these ads are part of the content of the site, these do not tend to appear in like manner to the content of the editorial feed. Typically delivered through a widget, recommendation ads are generally recognizable by words which imply external reference, suggestions, and tangentially related topics. “You might also like”; “You might like”; “Elsewhere from around the web”; “From around the web”; “You may have missed”, or “Recommended for you” typically characterize these units.
- Promoted Listings: Usually featured on websites that are not content based, such as e-commerce sites, promoted listings are presented in identical fashion with the products or services offered on the given site. Similarly justified as search ads, sponsored products are considered native to the experience in much the same way as search ads.
- In-Ad (IAB Standard): An In-Ad fits in a standard IAB container found outside the feed, containing “…contextually relevant content within the ad, links to an offsite page, has been sold with a guaranteed placement, and is measured on brand metrics such as interaction and brand lift.”
- Custom / Can’t be Contained: This category is left for the odd ends and ads that do not conform to any of the other content categories.
Native Advertising Platforms
Native advertising platforms are classified into two categories, commonly referred to as “open” and “closed” platforms, but hybrid options are also utilized with some frequency.
- Closed platforms are formats created by brands for the purpose of promoting their own content intrinsically on their websites. Advertisements seen on these platforms will not be seen on others, as these ad types are generated for its sole use, and structured around exhibiting ad units within the confines of the website’s specific agendas. Namely, advertisements distributed on closed platforms originate from the platform’s brand itself. Popular examples include Promoted Tweets on Twitter, Sponsored Stories on Facebook, and TrueView Video Ads on YouTube.
- Open platforms are defined by the promotion of the same piece of branded content across multiple platforms ubiquitously, but through some variation of native ad formats. Unlike closed platforms, the content itself lives outside any given website that it appears on, and is usually distributed across multiple sites by a third party company, meaning that the advertisements appearing on open platforms namely are placed there by an advertiser.
- Hybrid platforms allow the content publishing platforms to install a private marketplace where advertisers have the option to bid on the inventory of ad space either through direct sales or programmatic auction through what is known as Real-Time Bidding (RTB). Therefore, advertisements distributed on hybrid platforms are placed there by the platform itself, the space having been sold to an open platform advertiser.
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