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Native Ads for Affiliate Marketing

Native Ads for Affiliate Marketing

Quick answer: Native ads are paid ads designed to look like the content around them, like the recommended-story boxes under news articles. Affiliates use them to send cold traffic to a page that warms the reader up before an offer. They're cheap per click, low in intent, and for gambling offers each network sets its own rules by country.

I'm Rihards, founder of Seven Affiliates, and I've spent five years in iGaming. Native ads are the format people either swear by or swear at, often in the same week.

A native ad is a chameleon. [Looks around for the chameleon. It's on the keyboard.] Its whole job is to match the branch it's sitting on. That's the strength of the format and also the reason regulators keep a close eye on it, because a chameleon you can't spot at all is a problem.

Native ads at a glance

QuestionShort answer
What are they?Paid ads that match the look of the surrounding content
Where do they appear?Recommendation boxes and in-feed slots on publisher sites
What do you pay for?Usually the click
Visitor intentLow: they were reading something else
Gambling allowed?Depends on the network and the country
Main ruleIt must be recognisable as an ad

A summary of what follows. The intent rating is my own view, and the rest is sourced below.

What are native ads?

The US Federal Trade Commission describes native advertising as "content that bears a similarity to the news, feature articles, product reviews, entertainment, and other material that surrounds it online" (FTC).

The tracking tool We Can Track gives the affiliate version: "Native ads are paid advertisements that match the form and function of the content surrounding them. In affiliate marketing, they are used to promote affiliate offers through content-style placements on publisher websites" (We Can Track).

You've seen them. They're the row of headlines under a news article with a small label above it. The headline looks like a story, the picture looks like a story, and the click takes you somewhere that would like to sell you something.

How do affiliates use native ads?

As the first step of a three-step path. The ad earns a click, a content page earns interest, and only then does the offer appear. Sending native traffic straight to an operator rarely works, because the reader wasn't shopping for anything.

The middle step is where native campaigns are won or lost. Skip it and you're paying for people to bounce.

That content page has to be worth reading on its own. Our guides to affiliate landing pages and the affiliate funnel cover how to build it.

How do native ads compare with push and search?

They sit in the middle. Search visitors asked for something. Push visitors were interrupted. Native visitors were reading, got curious, and wandered over.

NativePushPaid search
What triggers the adThe page being readA notificationA typed search
Visitor's moodCuriousInterruptedLooking for an answer
IntentLow to mediumLowHigh
Needs a warm-up pageNearly alwaysNearly alwaysLess so
What you test mostHeadlines and imagesShort messagesKeywords

A comparison from my own experience, not published data.

Our push notification ads guide covers the neighbouring format, and the traffic sources guide has the full comparison. The chameleon, for the record, considers push ads a bit loud.

What do native ads cost?

It varies by network and country. We Can Track puts typical native click prices at roughly 20 to 60 US cents, "depending on the network" and the targeting, and notes that the largest networks "tend to be on the higher end".

Source: We Can Track. A cheap click is only cheap if it converts.

The click price is half the sum. What matters is whether a click earns more than it costs, and with low-intent traffic that gap is thin. Our traffic arbitrage guide covers the maths.

Can you run gambling offers on native ad networks?

Sometimes, in some countries, and you check before you build anything. Each network writes its own policy. Outbrain's is a good one to read because it's public and specific.

It says: "Promotions of gambling, or of sites where gambling is facilitated, are generally prohibited. The exceptions are when targeting the United Kingdom and the United States, where certain forms of gambling, such as online casinos, sports betting, and fantasy sports, are accepted" (Outbrain advertiser guidelines).

Outbrain's gambling ruleDetail
Default"generally prohibited"
ExceptionsCampaigns targeting the United Kingdom and the United States
Forms named as accepted there"online casinos, sports betting, and fantasy sports"
Also acceptedFree game apps, physical casinos as destinations, state-run lotteries

This is one network's policy as published when I checked. Policies change and other networks differ, so read the current version for the network you plan to use.

A network accepting gambling is only the first gate. The country's own advertising law still applies, and so do the offer's terms. Our compliance guide covers the first and your account manager covers the second.

What are the disclosure rules for native ads?

The reader has to be able to tell it's an ad before they click. The FTC puts the principle plainly: "it's deceptive to mislead consumers about the commercial nature of content."

It then closes the obvious loophole. Advertisers "are responsible for ensuring that native ads are identifiable as advertising before consumers arrive at the main advertising page". The FTC's phrase for ads that hide what they are until after the click is "deceptive door openers".

LabelThe FTC's view
"Ad" or "Advertisement"Likely to be understood
"Paid Advertisement"Likely to be understood
"Sponsored Advertising Content"Likely to be understood
"Promoted" or "Promoted Stories"Should not be used: "at best ambiguous"
A logo with no textNot a clear disclosure

Source: FTC, Native Advertising: A Guide for Businesses. This is US guidance. Other countries have their own rules, usually pointing the same way.

So the chameleon is allowed to match the branch. It still has to wear a name badge. [Chameleon looks annoyed. Wears the badge.]

How do you start with native ads without wasting the budget?

Small, tracked, and with permission in writing. The order matters more than the creative. A brilliant headline for an offer that doesn't accept native traffic is a brilliant way to earn nothing.

StepWhy
1. Confirm the offer accepts native trafficNot every offer does
2. Read the network's gambling policy for your countryRejection after you've built pages is expensive
3. Build the content page firstIt does most of the converting
4. Set up tracking with a sub ID per headlineSo you know which ad earned the deposit
5. Test several headlines at a small budgetMost will lose, and that's normal
6. Scale only what earns more than it costsClicks aren't the goal

Our guides to affiliate link tracking and affiliate metrics cover steps 4 and 6.

Native traffic at Seven Affiliates

Whether native traffic is accepted depends on the offer. We're building a curated network of private iGaming offers, and each one has its own terms on traffic types and countries, agreed with your account manager.

Ask before you launchWhy it matters
Does this offer accept native traffic?Get the answer in writing
Which countries can I target?It has to match the network's policy too
What can my ad and content page say about the offer?Offer terms are private, so check first
Which deal type suits cold traffic?We offer CPA, RevShare and Hybrid

RevShare with us is calculated on NGR, 35% by default, with no negative carryover. Our CPA vs RevShare guide covers which deal fits paid traffic.

FAQ

What are native ads in affiliate marketing?

Native ads are paid advertisements that match the look of the content around them, such as recommended-story boxes on news sites. Affiliates use them to send readers to a content page that leads to an affiliate offer.

Do native ads work for affiliate marketing?

They can, when the click leads to a useful content page and the campaign is tracked closely. The traffic is low intent, so sending it straight to an offer usually performs poorly.

How much do native ads cost?

We Can Track puts typical native ad click prices at roughly 20 to 60 US cents depending on the network and targeting. Actual costs vary by country and niche.

Can you advertise gambling with native ads?

It depends on the network and country. Outbrain, for one, says gambling promotions are generally prohibited, with exceptions for campaigns targeting the United Kingdom and the United States.

Do native ads have to be labelled as ads?

Yes. The FTC says native ads must be identifiable as advertising before consumers arrive at the main advertising page, using clear terms such as Ad or Advertisement.

Running paid traffic and want offers that fit it? See how the Seven Affiliates iGaming affiliate program works, then apply here.

Written by Rihards, founder of Seven Affiliates.

Five years in iGaming affiliate marketing. Has lost the chameleon again.