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The Future of Native Advertising for Luxury Markets



In an era where authenticity and relevance are paramount, native advertising seamlessly blends promotional content with the platform's natural context.


Native advertising, especially in the luxury sector is paramount to crafting a brand message without coming across as trite. By delving into the synergy between consumer market research and native advertising, we uncover how this strategic alliance creates authentic, impactful, and resonant campaigns.



The Rise of Native Advertising


Native advertising has witnessed remarkable growth as consumers seek more engaging and less intrusive forms of advertising.


In 2012, we witnessed the advent of digital native advertising and since its inception, the adoption of the medium has grown exponentially.


Unlike traditional banner ads or pop-ups, native ads fit seamlessly into the user experience, aligning with the look and feel of the platform.


Non disruptive ad experiences are ones which do not interrupt the user as they consume the content which they originally intended to consume, they are ads which blend in with the look and feel of the site.



The Impacts of Native Ads for Luxury Marketers


This approach leads to higher engagement rates and improved user satisfaction.


Native ads can be especially crucial for marketers as it marks the moment when a reader has finished consuming content and they are looking for what to do next.


As luxury consumers today are becoming more demanding with brands and more skeptical of modern advertising strategies, marketers are rising to meet this challenge with more bold, meaningful content which integrates into the passion points of their target audiences and meets them where they are in the purchase journey.


Luxury brands have recognized the potential of native advertising to convey their brand message in an organic and relevant manner.


According to a study by Sharethrough in collaboration with IPG Media Lab, consumers looked at native ads 53% more frequently than display ads, and native ads registered an 18% higher uplift in purchase intent and a 9% uplift in brand affinity than banner ads.




The Importance of Native Ads in the Luxury Sector


In the realm of luxury hospitality and tourism, where exquisite experiences and personalized services are paramount, native advertising holds tremendous potential.


More so, it is projected that by 2025, native advertising spend is projected to increase by 372% from 2020 with a total value of $402 billion


Luxury consumers value authenticity and exclusivity, making native advertising a fitting medium for reaching this discerning audience.


A well-crafted native ad allows luxury brands to tell their story in a way that resonates with the consumer's aspirations, immersing them in the allure of a destination or experience.



Future Trends to Look Out For in Native Advertising in the Luxury Sector


As more luxury brands start to implore native advertising, campaigns will need to keep ahead of trends so as to stick out amongst the noise.



1. Programmatic Purchasing - Traditionally, buying native ad space was done directly through a publisher. However, in 2020, more than 90% of native ads were bought through the programmatic buying model which enables more flexibility by managing the buying and selling of digital ads through software.


Since the ads are not purchased on a website, this results in more cost-efficient purchases, with higher transparency, more effective target marketing, and the implementation of real time data.



2. Valuable Content - As more luxury brands implement native advertising, consumers will become more aware of, and inundated with, more choice, and more quality choices.


It is easy to piggyback on the publication's credibility, however many publishers must ask if the content would be considered as an editorial irregardless of the ad spend. Therefore, it is paramount to provide not just content but rather valuable content that will break through the noise.


Since the native advertising format is often well received by consumers, it is an opportunity to provide engaging and valuable content to affluent consumers.


According to a study by Time Inc., 93% of consumers under the age of 35 prefer brands who put effort into their native adverts and create something unique, and over half of the participants preferred native ads which told a story over selling a brand.



3. Mobile Usage - More affluent consumers are utilizing their mobile phones for consuming various types of content. According to a report from eMarketer, 88% of native ads are on. mobile devices.


Even though social media is a key tool for native advertising, native ads on social media has been on the decline, with a 3% decrease in the past year. This indicates that non-social mobile ads are expected to increase.



4. Interactive Content - Since brands are looking for engagement, interactive content has a higher appeal. For example, a New York Times article, 'Women Inmates', which was written as part of a partnership with Netflix for the launch of Orange is the New Black, is a prime example of a piece of native advertising with interactive imagery to captivate audiences.



5. Audio Articles - Articles which can also be consumed audibly are on the rise and data shows that the medium works wells for building trust and habit with younger readers, especially as it adds a personal element to the content. This can also be translated to podcasts which are created together with partner brands.



Conclusion


In the future, successful native advertising will be about creating seamless, valuable, and relevant experiences for users. As technology evolves and consumer behaviors change, staying adaptable and innovative will be key for brands looking to leverage the power of native advertising effectively. In the evolving landscape of luxury, native advertising emerges as a potent strategy. As native advertising continues to shape the luxury sector, those who understand the art of blending marketing seamlessly with the consumer experience will thrive in this dynamic and competitive market.


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