What Is Native Advertising? How It Works and Examples (2025)

Native advertising is a powerful strategy that seamlessly integrates promotional content within the user experience. Learn how to boost ecommerce sales with these tactics.

Brands that run native advertising campaigns have the advantage of communicating with potential customers when they’re browsing online. 

Native ads—which slot within existing content on a social media platform, search engine, or publication—don’t disrupt the user experience, making them more interesting to online shoppers.

This type of ecommerce advertising is big business, too. According to eMarketer, native ads accounted for 63.1% of total display-ad spend in 2024. 

Read on to learn how to create native advertising that converts, alongside best practices and real-world examples of native campaigns.

What is native advertising?

Native advertising is paid media that matches the form, function, and tone of the environment where it appears. A native ad is made to blend in with the same font and visual style of the surrounding article or social post. 

Where traditional ads might distract or disrupt the reader’s experience, a native ad offers the opportunity to blend the content of a trusted editorial brand with your own. It’s clearly labeled “Sponsored” as per FTC rules so readers know it’s a paid advertisement. 

Native ad formats overview

Native ads now span everything from marketplace listings to overlays on streaming TV. Below is a quick overview of the most common and emerging formats. 

Recommendation widgets

These appear at the end or in the sidebar of an article with labels such as “From around the web” or “You may also like.” Content-discovery networks like Taboola and Outbrain personalize each tile with past browsing data to lift click-through rate (CTR).

Promoted listings 

These are sponsored product tiles that surface inside marketplaces such as Amazon, Walmart, and Instacart. Shoppers treat them like organic results, so bids are tied to return on ad spend (ROAS).

In-feed ads

Social media platforms like Facebook, Instagram, LinkedIn, and Pinterest offer in-feed native ads. These appear in a user’s news feed and look like the content a user would typically see posted by their family and friends, only it’s from your brand. 

Native video ads

These ads appear as vertical or square video that autoplays inside the feed. Some common examples are TikTok Spark Ads, Instagram Reels, or Reddit in-feed clips.

Here’s an example from smol, a cleaning retailer who runs native video advertising campaigns in the “CleaningTips” Reddit forum.

Paid search ads

Google and Bing label these ads “Sponsored,” but their typeface and layout mirror organic listings. You can target specific keywords and bid to appear at the top of potential customers’ search results. These are ideal for bottom-funnel buyers, and their effectiveness is measured in cost per acquisition (CPA) and average order value (AOV).

Sponsored content 

Sponsored content is another type of native advertising whereby a publisher shares content a brand has paid to be included in. It’s typically not distinguishable from other content other than a small note labeling it as “Native” or “Sponsored” content.

BuzzFeed, for example, published a sponsored pet article on its website. There’s a short disclaimer before the article begins, explaining the publisher may collect compensation for promoting it.

BuzzFeed posts sponsored content on its website.

Programmatic native display

Real-time bidding pipes—supply-side platforms (SSPs) and demand-side platforms (DSPs)—buy widget-style native spots across thousands of sites. Algorithms handle the placement—you set the budget, creative, and conversion goals. 

Connected-TV (CTV) native overlays

CTV ads appear on apps like Netflix and Roku when someone hits play or pause. CTV ad spending is projected to reach over $33 billion in 2025, so it’s clear that reaching cord-cutters is becoming more effective. 

These ads have high attention seconds. Viewers can’t skip a pause-screen overlay, and clickable CTAs can drive them toward product pages. 

Native audio or podcast host-reads

If you’ve ever listened to a popular podcast, chances are you’ve heard this type of ad before. It blends into the show’s normal character—same mic, same tone, and even featuring the host’s personal anecdotes.

Viewers trust the host they tune into weekly, so the recall and purchase intent with these ads can be higher than other spots. These are also easy to track. You can give the host a unique discount code and script to follow so they stay on brand. 

Augmented-reality (AR) lenses and filters 

AR lenses on Snapchat and Instagram let shoppers “try on” sunglasses, “place” a couch in their living room, or play with branded face filters. The experience feels like a native camera effect, but each share spreads the ad to a new circle of friends.

Among Snapchatters, 81% agree that AR can be a fun way to learn about new products, and they are 1.6x more likely than other app users to use the app to invite friends to shop with them.

Programmatic native advertising and automation

Programmatic ad tech now powers almost every dollar flowing into display. Emarketer projects that this type of automation will account for 96.8% of all new display-ad dollars in 2025. Native units, like widgets and sponsored listings, are riding the wave.

To take advantage of this shift, you can tap DSPs to book native inventory at scale and in real time. Algorithms handle the bid shading, creative rotation, and AI-based language tweaks. 

DSP vs. SSP workflow

There are two workflows associated with programmatic ads:

• DSP: The advertiser’s dashboard for bidding on impressions
• SSP: The publisher’s dashboard for auctioning inventory to the highest-value buyer 

Here is how the standard workflow goes. Mind you, this all happens in less than 100 milliseconds:

• A user lands on a publisher page. The SSP sends an ad request with basic info (like URL, device, and location) to an ad exchange.
• The ad exchange contacts DSPs. It shares the request with several DSPs, each checking if the user matches their target audience. 
• DSPs place their bids. For example, a DSP might offer $3.80 for 1,000 impressions (known as cost per mille, or CPM) within 24 hours. 
• The winning bid is selected. The higher bidder is chosen, and the SSP notes it.
• The ad appears. A native ad shows up on the page, tracks user interactions, and you record any clicks or sales. 

Open, closed, and hybrid platforms

Native ads are bought through four types of deals:

• Open auction (open exchange): Any verified advertiser can bid in real time. Offers the largest audience and lowest cost, but the highest risk of ad fraud. Good for general outreach.
• Private marketplace (PMP): Invite-only bidding where selected advertisers compete for premium spots. Costs more, but gives better control over where ads appear. Great for targeted placements on sites matching your brand.
• Preferred deal: Direct, one-to-one agreement at a fixed price. You get priority access, but ad volume isn't guaranteed. Useful for seasonal campaigns needing stable pricing.
• Programmatic guaranteed: Ad spots, impressions, and prices are all confirmed beforehand and usually reserved for special placements, like connected TV ads or homepage takeovers during big sales events like Black Friday. These get top priority from publishers.

Regulatory compliance and disclosure guidelines

Native ads only work long-term if you stay on the right side of the law, and the rules have tightened. Here are two frameworks every business should know before using native advertising: 

FTC requirements for ecommerce brands

The Federal Trade Commission enforces Section 5 of the FTC Act, which bans deceptive or unfair advertising practices. Native ads are no exception.

There are specific scenarios in which you need to be transparent about an ad:

• Ads that mimic news articles, blogs, or editorial content
• Sponsored content presented as regular site features
• Promotional content in content-recommendation widgets
• Embedded ads that appear indistinguishable from unpaid articles

Some key points to follow, according to the FTC, are:

• Clearly label ads. Ads should never pretend to be anything other than ads. Consumers must easily recognize content as advertising, not editorial or impartial content. Use words like "Ad," "Advertisement," "Sponsored," or "Paid partnership."
• Place disclosures where consumers first look. Usually this means above or immediately below headlines or thumbnails. For widgets or content grids, disclosures should be above or beside each ad.
• Cover every format. If you’re advertising on a podcast, the host must acknowledge the sponsorship at the start of the segment before any CTA. Adapt your disclosures according to the format you’re using for native ads. 

IAB creative standards

The Interactive Advertising Bureau sets the industry standard for file size, layout, and measurement. When you align with these guidelines, publishers will approve your ads faster, and you’ll remain compliant. 

The IAB’s Native Advertising Playbook 2.0 suggests:

• Follow file size and animation limits. Keep static or lightly animated ads under 150 KB. Short-form videos should be under 6 MB and no longer than 15 seconds (unless the publisher permits longer).
• Stay within character limits. For example, keep headlines fewer than 60 characters, descriptions fewer than 110 characters, and brand names fewer than 25 characters. Publishers can reject ads exceeding these limits.
• Measure transparently and safely. Report native ads by device, creative type, and viewable CPM.

How to create native ads

Native ads win attention, but only when every piece works in sync. Follow these steps to creative high-converting native ads. 

1. Choose the right native advertising channels.
2. Craft a compelling native advertisement.
3. Set a duration for the campaign.
4. Optimize landing pages for conversion.
5. Set clear KPIs to monitor performance.

1. Choose the right native advertising channels

Much like with any ecommerce advertising strategy, targeting the right audience makes or breaks the success of your native advertising campaign. 

Native ads can run across publications, social media channels, and search engines. Choosing a channel with an audience that overlaps with your customer base increases the likelihood your advertising dollars will generate a positive return on investment (ROI). 

That’s why ecommerce growth consultant Barry Hott recommends the tactic. “Look for and hire creators for their ability to make interesting relevant content for your audience, not their audience size, how pretty they are, nor their ability to show a product beautifully,” he says. “Have your brand/product featured in great, relevant content related to the problems your audience faces."

Dig deep into customer personas and identify where they hang out online—be it trendy news sites like BuzzFeed or social media platforms like Instagram. Use post-purchase surveys, live chat, and onsite surveys to ask existing customers which publications they read most often. Shortlist the most popular for your native advertising target list. 

Once you identify your chosen native ads channels, consider utilizing Shopify Audiences. It combines data from millions of Shopify stores and connects you with people most likely to buy your products.

2. Craft a compelling native advertisement

While effective native ads don’t draw away from the experience of a reader, the ultimate goal is to drive targeted website traffic to your online store. Intrigue and mystery entice people to do that. It’s the virtual equivalent of closing a loop—those viewing your native ad must click it to understand its full context. 

A simple method is to ask a question related to the paid content and the landing page you’re sending readers to. Let’s put that into practice and say you’re running a native ad on a Vogue article about celebrity makeup routines. You could send readers to your foundation shade finder quiz with a headline like “Are you wearing the wrong shade of foundation?” 

3. Set a duration for the campaign

Your first native advertising campaign won’t run indefinitely. Mastering any new advertising format takes trial and error—there’s no exact science to attracting new customers and convincing them to make a purchase.

If you’re running native ads on a platform like Facebook, set a short duration, such as two weeks, for your first campaign. This will give the advertising algorithm time to display your content and collect enough data to make smarter targeting decisions next time.

4. Optimize landing pages for conversion

No campaign is a success until someone completes an action on your website. Whether you’re basing success on email sign-ups or sales, don’t let your hard work go to waste by sending people to an underperforming landing page.

The average landing page conversion rate hovers between 1.5% and 2%. Lean on the following ecommerce conversion rate optimization (CRO) tips to optimize your landing page:

• Leverage social proof, such as user-generated content, expert endorsements, and five-star ratings.
• Improve site speed by reducing code bloat and unnecessary redirects.
• Write detailed product descriptions that help online shoppers visualize your product. 
• Show your commitment to charitable causes with carbon-neutral shipping options using
  Shopify Planet.

Smoke Cartel is one merchant that implemented these CRO tactics. The store switched to Shopify servers to improve site load times—a move that increased their click-through rate from 0.8% to 1.2%. “It’s just a fraction of a difference, but it means thousands of additional dollars,” owner Sean Geng says.

5. Set clear KPIs to monitor performance

Key performance indicators (KPIs) tell you how successful your native ads campaigns are in reaching their goals. Set yours before launching any new ads to ensure you’re optimizing for the right objectives. 

The most popular KPIs to monitor native ad performance include:

• Cost per mille (CPM): The cost per 1,000 impressions 
• Cost per click (CPC): The cost of each click to your online store 
• Click-through rate (CTR): The percentage of people who view your native ad and click through. The higher this metric is, the better—it indicates that people who see your campaign are interested enough to want to learn more. 
• Conversion rate: The percentage of people who purchase after seeing a native ad 
• Return on ad spend (ROAS): The total value of sales as a percentage of ad spend 

Don’t just settle for a big-picture analysis when evaluating your native ad performance. Break down data by ad format, target audience, and messaging to see which variations drive the best results. These variations deserve the most budget. 

Advanced measurement and attribution

Chances are, you’d rather tell leadership something like, “Native ads drove $83 in revenue for every $10 we spent,” rather than “native ads are probably working.” Accurate measurement is the only way to do that, and it involves two layers of analytics:

• Attribution windows that decide when a conversion still deserves credit
• Incrementality tests that prove whether the ad truly caused that conversion

Post-view vs. post-click windows

• Post-view: This is when a user sees but doesn’t click your ad, then converts within X days. Common post-view windows can range anywhere from 1 to 30 days. 
• Post-click: This window refers to when a user clicks your ad and purchases within X days. 

The purchase cycle logic for both is similar. A shorter window (less than 3 days) is more typical for impulse or low-AOV items. Shoppers usually convert quickly after first touch. 

A longer attribution window is typical for high-ticket items like furniture or luxury goods. Shoppers may need multiple sessions, device hops, or a payday before they buy. 

Incrementality testing

Incrementality testing answers the big question: “Would I have made this sale without the ad?” It involves a controlled experiment (test versus control group) that shows how many customers converted only because they saw your ad. 

Platform dashboards use last-touch attribution and credit themselves for every sale they were near. That inflates results and can push budget to channels that don’t really move the needle. That’s why incrementality testing helps stop wasted ad spend. It’s useful for impression-heavy, lower-click channels where traditional reporting falls short: display, video/YouTube, Facebook, CTV/linear TV, and even direct mail.

To run these tests, a platform like Measured is your best bet. The platform can automatically ingest data, execute experiments, and provide budget reallocation recommendations based on your results. 

Native advertising examples

Bombas

Bombas is an apparel brand that worked with Taboola on a native advertising campaign. Their goal was to launch a holiday campaign for their revamped collection of slippers. 

Bombas created native ads for online publications like NBC News. Imagery blended seamlessly with the “Related content” section beneath NBC News articles and the headline evoked emotion, promising shoppers would get the best slippers for a lazy Sunday.

The results of Bombas’ native campaign were impressive. According to Taboola, the retailer saw a 50% increase in return on ad spend. Almost 40% of their holiday conversions from the slippers category derived from these campaigns.

Bombas’ native advertising on the NBC News website.

Brooklinen

Brooklinen is a brand that sells luxury bed products through their direct-to-consumer website. 

In a bid to increase revenue, the brand worked with native advertising platform Outbrain to produce two campaigns. The first campaign targeted a new audience with zero knowledge of the brand, while the second retargeted a group of people who had already engaged the brand but didn’t purchase. 

Outbrain reports that the native advertising campaign achieved its goal and got a better ROAS than traditional social campaigns. The native ads converted 15% more users than traditional social platforms, with three times lower cost-per-clicks.

Brooklinen’s native advertising on two different websites: A Cup of Jo and Business Insider.

Bloomberg

On Reddit mobile, every post starts with the avatar, username, and subreddit line. Bloomberg uses the exact header lines so the unit occupies the same real estate as an ordinary post. 

The single word “Promoted” appears where Reddit normally shows the post’s timestamp. It’s obvious enough to satisfy FTC rules but doesn’t yank the reader out of the scroll.

Reddit’s “r/popular” mix often surfaces finance, business, and market news. A discounted Bloomberg subscription (“stories that affect your wallet”) aligns with those interests, so the ad feels like a logical next read rather than a random sales pitch.

It’s also mobile-friendly. Large typography (“$149/first year”) and high-contrast colors remain legible on small screens. The gold-bar visual signals “investing” at a glance, perfect for a thumb-scrolling audience that decides in under a second.

Best practices for native advertising in ecommerce

Optimize native ads for mobile devices

Cater to mobile users with native mobile ads that are responsive across all devices. This means:

• Large fonts that are visible on smaller screens
• Headlines that don’t get truncated on mobile devices
• Images where the subject is clearly visible when the photo is minimized

If you’re running native mobile ads, lean on the advanced targeting features many platforms offer. Meta allows merchants to target users accessing the platform on specific devices across both Facebook and Instagram. 

This gives you a greater ability to run campaigns with different imagery, copy, and ad formats suited to the screen size each ad set will load on. Segmenting ad sets this way also ensures consistency with cross-device ad targeting.

Reflect the channel in your ad

“Traditional display ads or commercials tend to interrupt the user’s experience, but our native ads are designed to blend in with the platform they’re on, making them more engaging,” says Wendy Wang, owner of F&J Outdoors. “The key is to create ads that resonate with the platform they’re on and with your target audience. An effective native ad doesn’t feel like an ad—it blends in with the natural content flow and provides value.”

Take these native advertisements beneath a HuffPost article. Both images and headlines are in HuffPost style, as demonstrated by the organic content just beneath. The only way to differentiate these snippets is the “Sponsored” label.

Create personalized landing pages for native ads

The audience for your native advertising campaign may have a need related to what you offer, but they have yet to identify you as a candidate to solve their pain points. 

Create personalized landing pages that emphasize your value, personalize your qualification process, and incentivize the consumer to hand over their email address. You’ll likely need an incentive to drive the user into taking action, such as:

• Discounts or promotions
• Free product demos
• Exclusive product bundles 
• Price quotes 

Personalization platforms like Nosto also integrate with your Shopify store and tailor the shopping experience using customer data you’ve already collected. If an existing customer lands on your ecommerce store through a native ad, for example, Nosto can alter the landing page content to display products relevant to their previous purchase.

Retarget existing audiences

Retargeting campaigns display advertisements to people who’ve already interacted with your brand. Platforms like Meta, Twitter, and Google support retargeting campaigns that reach people who’ve already visited your ecommerce site, accessed specific product pages, and added a product to their shopping cart. 

Use this customer data to your advantage when running retargeted display ads. You can show potential customers the same items they’ve already expressed an interest in. Oftentimes, a small nudge is all these shoppers need to convert—which is why retargeted shoppers are more likely to click an online advertisement than those with no previous brand engagement. 

“I run native ads entirely on Google because my customers tend to convert best based on search intent,” says Lou Haverty, owner of Tank Retailer. “With Google Ads, I can use keywords to retarget customers with native shopping ads when they are searching for high buying intent keywords. 

“As an example, my retargeting native ads had two conversions in the last seven days, at a cost of $70.53 per conversion. That may sound high, but my products cost $1,000 to $3,000 on average, so that is a pretty cheap [customer acquisition cost].”

Pawz runs retargeted native ads on Facebook.

Native advertising trends for 2025

AI-generated creative & dynamic copy

Generative AI tools are becoming part of the default workflow. Forrester found that 91% of US ad agencies are currently using or exploring generative AI (GenAI). A separate McKinsey survey shows regular GenAI use jumped from 33% of firms in 2023 to 71% in 2024, with marketing one of the top two functions.

New dynamic creative optimization (DCO) engines like Meta Advantage+ and Google’s Performance Max now plug GPT-style models into product feeds, auto-swapping copy, price, and imagery in seconds. This also lets brands A/B test at scale. For example, you can run multiple variant tests (A/B/C/D…), reworking copy for region, weather, and stock levels, then letting platforms drop the losers within a defined timeframe. 

Privacy-first contextual targeting (cookieless)

Contextual targeting and first-party data are the top strategies US advertisers will use to maintain targeting effectiveness amid growing privacy laws, per eMarketer. With more states enforcing privacy laws and experts predicting that nearly all US browsers will be cookieless in the long run, a new era is imminent. 

Pair first-party Shopify Audiences segments with context engines like Outbrain and Taboola to overlay purchase intent on page topics. No IDs are needed. A first-party approach that lets you deliver relevant messages without cookies is key to high native ad performance in 2025.

How do you spot native advertising?

Native advertising can be tricky to spot, especially since the goal is to blend in with a page’s existing content. “The key to creating native ads that convert lies in relevance and seamless integration,” says John Webber, founder of Carved. “It is crucial to align the ad content with the look, feel, and tone of the platform it appears on.” 

The biggest telltale sign of native advertising is a disclaimer, such as “Sponsored By” or “Ads” beside the native ad. 

Take Google search results, for example. Native ads are designed to look like organic listings, but you can differentiate paid advertisements from organic results by looking at the “Sponsored” tab above the paid listing:

Sponsored listings on Google search results for “Shopify agency.”

Drive targeted online traffic with native advertising 

Search, social, and display ads remain vital digital marketing tools in the ecommerce toolbox, but to keep your pipeline fresh and flowing, native advertising belongs in the mix.

Use these native advertising guidelines to create a valuable stream of customers who are ready to discover what you have to offer and become tomorrow’s loyal customers.

“Native ads are about building relationships, not just driving clicks. Be authentic, offer value, and spark engagement,” says Kiran of Goldspot Pens. “It’s like being a friend rather than a salesperson.”

Native advertising FAQ

How does native advertising differ from traditional advertising?

Native advertising differs from other types of advertising because the goal is for paid placements to blend seamlessly with existing content. Native ads don’t distract from the viewing experience.

How much does native advertising cost?

One report found that cost per mille (CPM), or cost per 1,000 impressions for native advertising ranges between $4 and $20, depending on the format used.

How can I effectively integrate native advertising into my marketing strategy?

The easiest way to start native advertising is on a social media platform like Facebook. The platform’s targeting features allow you to produce native ads in a user’s feed and give merchants greater control over their ad targeting, appearance, and budget.

What factors should I consider when choosing a native advertising platform for my business?

• Audience size
• Customer persona overlap 
• Ad formats available 
• Price
• Bidding options 

How can I measure the success of my native advertising campaigns?

• Cost per mille (CPM): The cost per 1,000 impressions 
• Click-through rate (CTR): The percentage of people who view your native ad and click through
• Conversion rate: The percentage of people who purchase after seeing a native ad