FAQ: What’s the Difference Between Sponsored Content and Native Advertising?

“What’s the difference between sponsored content and native advertising?”

The digital marketing world is a mystery to many. As soon as you think you have a solid understanding of how advertising works, you learn that there are a variety of online advertising strategies to conquer and different scenarios in which to use each one.

When our clients hear terms like “sponsored content” and “native advertising,” they often ask us what the difference is and how to know which ad strategy to use. Our response is that you can test the various forms of advertising fairly easily—but first you have to understand the nuances of each one.

Native advertising is an umbrella term for ads that mirror the environment in which they appear. So, if you’re doing a location-based search in Google, the paid ads at the top are considered native ads because they look similar to the organic results also on the page.

Native ads come in many different forms. We deal primarily with paid search ads—such as pay per click (PPC) ads —but there are several other types out there you can use in your digital strategy. This could include:

• Promoted listings on e-commerce sites
  
• Social media display ads
  
• Recommended content on news or entertainment sites
  
• Location-based ads within apps
  

These are just a few examples of native ads you could utilize in your marketing campaign.

Sponsored content involves paying a person, account or company to promote your business using intentionally targeted content. Oftentimes, the business doing the marketing (you) writes a blog or creates a campaign idea and pays another platform to post it. It’s made to look organic, but there’s always an underlying marketing motive to the messaging.

The goal of sponsored contentis to widen your audience reach and gain brand exposure. There’s also the added benefit of tying your name to a reputable or popular source. You’ll often see this advertising in the form of:

• Professional bloggers writing about a certain product
  
• Social media influencers promoting a brand
  
• “Listicles” (list-articles) that appear organic but slip a brand name or product in the content
  

While sponsored content falls under the umbrella of native advertising, not all native ads are sponsored content.

Like any facet of digital marketing, there’s a time and a place for everything. The same goes for sponsored content and native ads. When deciding what type of advertising strategyyou want to employ, you need to determine the goal of this campaign.

If your goal is to…

Get more brand exposure : Sponsored content is the way to go if you aim to familiarize more people with your company’s name. If a well-known company or industry blogger mentions your name in his/her content, you’re reaching a much wider audience than you would on your own.

Gain more high-quality leads: Stick to native advertising like PPC. These ads show up when searchers are looking for your specific products and are ready to buy in, so your ad will be in the right place at the right time.

Quickly sell a particular product: It depends. If the product is well known and people are already searching for it, PPC is the best option. However, if it is a newer, lesser-known product, sponsored content by an industry-trusted brand can help bring immediate attention to your item.

Promote a certain location: Use location-based native ads. No matter what platform you’re using, ads that target your products/services within a specific location will be more appealing to consumers in that area, especially for local small businesses.

No one ever said advertising would be a walk in the park. Choosing the right type of ads based on your marketing goals is just one of those hurdles. And making the right decision starts with understanding the differences between sponsored content and native advertising.