When Facebook IPO'd, everyone said it would fail unless they figured out how to monetize mobile - which according to the media, was impossible. But then the same people who lambasted the company shut up once they came to know that Facebook had already done it, and they hadn't even realized.
Facebook cleverly managed to put ads in your mobile newsfeed that looked so much like a regular status update, that you might miss the small "sponsored" that watermarked a corner of the post. These types of ads are called Native Ads, defined as a form of paid media where the ad experience follows the natural form and function of the user experience in which it is placed.
The problem is that many users hate Native Ads, as they find them deceptive. This is unfortunate as native ads tend to provide a better, more engaging user experience, and the fact of the matter is that branded content is here to stay. In fact, native ads tend to be more successful than others, and usually have a team of creative content producers working behind the scenes. They can be used to convey nuanced messages about brands to a customer, something that a banner ad may not be able to accomplish.
Additionally, native ads are created keeping in mind the possibility that they will go viral, something that will never happen to display ads. However, the question of how native ads will fare when it comes to scaling them is one that is yet to be determined. This is in stark comparison to banner ads, that scale very well.
All in all, looking at the bigger picture, when choosing between native ads and traditional ad formats, native advertising appears to be the better option in the long run.
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