Native Video Ads vs. Display Ads: Which Works Best?

We’ve got a quick question for you. 

Would you rather watch a video ad that fits right into your feed or check out a flashy banner ad hanging out on the sidebar? 

You can pick either one, but which one really does the job? 

Regarding Native Video Ads vs. Display Ads, one keeps you engaged longer, while the other is all about getting the most clicks to reach more people.

What we found is more interesting. 

Feature	Native Video Ads	Display Ads
Appearance	Blends naturally with platform content	Clearly separate from content
Format	Videos that fit into the user experience	Images, GIFs, animations
Engagement	Higher engagement since they feel organic	Users may ignore them
Disruptiveness	Less disruptive and feels like part of the platform	Can be intrusive
Best For	Storytelling and engagement-driven marketing	Quick attention-grabbing promotions

Understanding Native Video Ads and Display Ads

Ads! They are everywhere. When you scroll a website, watch a video, or read a book online, those ads just pop up out of nowhere.  

But have you ever noticed the difference between them? Some ads stand out, like banners, while others just blend in so well that you hardly realize they’re ads.

 That’s the difference between Display Ads and Native Video Ads.

What Are Display Ads?

Display ads are basically the ads you see everywhere, but online ones. 

You can spot them as banners, pop-ups, or sidebars on different websites, apps, and social media platforms. These ads look so different from the content you are watching. You can recognize them in a snap. 

👉 Example: You’re reading news on Forbes and see a banner at the side promoting a video production site. That’s a display ad!

[Source: Breaking News| Forbes]

Key Features of Display Ads:

• Contain images, text, and sometimes animations
• Clearly separate from website content
• Found on websites, apps, and social media
• Can be static (still images) or animated (GIFs, videos)
• Banner ads, sidebar ads, and pop-ups

What Are Native Video Ads?

Native video ads are the ones that mix right in with the stuff you’re already watching.

Native video ads aren’t like display ads that look like obvious promotions. They feel more natural within the user experience. You usually see them pop up in your news feeds, squeezed in between social media posts. These ads even come up right before or after a video you’re checking out.

👉 Example: You’re scrolling through random news sites, checking out all sorts of quirky stuff happening around the globe. You notice some sponsored ads that are pretty much the same kind of content you’re reading about. That’s a native video ad!

[Source: TIME]

Key Features of Native Video Ads:

• Blends naturally with the platform’s content
• Doesn’t feel intrusive or disruptive
• Can be skippable or non-skippable
• Found in social media feeds, article sections, and video platforms
• Engaging and storytelling-based rather than direct promotion

Relatable Reads: Video Ads vs. Image Ads: Which Performs Better for Your Marketing? – LocalEyes

Performance Metrics: Native Video Ads vs. Display Ads

Fine, these ads are coming right into our screens, but do we actually like them all the same? Which ones are you most likely to click on? 

There is a reason to ask these questions. 

Native video ads and display ads have very different impacts on audiences. That’s why we will analyze their “popularity” through the matrix.

Viewability: How Often Are the Ads Seen?

Native Video Ads: Higher viewability rates
Display Ads: Lower viewability 

What Stats Say:

• Native video ads get counted as viewed two seconds after they start playing, while display ads need to be visible for at least one second.
• Native ads get 53% more views compared to regular display ads.

Why?
Native video ads appear naturally in feeds and articles. It is really hard to ignore. On the flip side, display ads sit on the sides or top of a page. You can easily scroll past them quickly.

Click-Through Rates (CTR): How Often Do People Click?

Native Video Ads: Higher CTR
Display Ads: Lower CTR due to “banner blindness”

What Stats Say:

• The average CTR for native video ads is 0.16% on desktop and 0.38% on mobile. It’s only 0.5-1% for display ads.
• Native video ads generate 30% more clicks than display ads. 
• Display ads have a high “banner blindness” rate, meaning people just don’t pay attention to them, even when they can see them.

Why?
Native video ads don’t feel like the usual boring ads. People are way more likely to interact with them. Display ads? Those usually get ignored because everyone knows they’re just trying to sell something.

Engagement: How Much Interaction Do the Ads Get?

Native Video Ads: Higher engagement
Display Ads: Lower engagement

What Stats Say:

• Native video ads drive more engagement than display ads.
• Social media native video ads are way more effective, bringing in 34% better returns than display ads.
• Native ads are 18% more likely to boost purchase intent than regular banner ads.

Why?
Native videos feel like part of the content. Display ads, however, are often seen as interruptions, leading to less interaction.

User Trust: How Much Do Users Trust These Ads?

Native Video Ads: More trust
Display Ads: Less trust

What Stats Say:

• Most people online, about 85%, think native ads feel more trustworthy than display ads.
• 43% of marketers believe that display ads are the least effective option out there.

Why?
Native ads blend with the content. It looks more organic. Display ads feel pushy or irrelevant. You will not trust display ads at first glance. 

Check out The 10 Most Effective Types of Video Advertising to Grow Your Business – LocalEyes 

Advantages and Disadvantages of Native Video Ads and Display Ads

There is no denying that both native video ads and display ads have strengths and weaknesses. The right choice depends on your marketing goals. 

Advantages of Native Video Ads

• Users interact more with native video ads
• People actually see native video ads more
• Native video ads get click-through rates
• Native video ads feel like part of the content
• They don’t interrupt the user’s experience
• Users trust native video ads due to their organic format
• Viewers remember native video ads more
• Native video ads seamlessly fit into mobile browsing

Disadvantages of Native Video Ads

• Producing and running native video ads can be costly
• They require creative teams and high-quality video content
• Native video ads take more time to create
• Unlabeled ads may trick users, causing trust issues.
• Native ads mix in with other content, making it harder to track conversions.
• Content that works on Facebook might not work on a news website, requiring customization for different platforms.

Advantages of Display Ads

• You can easily create a display ad within minutes using simple graphics and text.
• Display ads are generally cheaper than native video ads
• You can target specific demographics, locations, and interests using Google Ads
• Display ads appear across millions of websites and apps
• Display ads are very easy to measure through CTR, impressions, and conversions
• Display ads are perfect for retargeting users who have already visited

Disadvantages of Display Ads

• Display ads have a very low CTR
• Many users ignore display ads because of banner blindness
• Display ads are often blocked by ad-blocking software
• Pop-ups and auto-playing ads annoy users
• People rarely interact with static display ads

Which One Is Better?

Feature	Native Video Ads	Display Ads
Engagement	⭐⭐⭐⭐⭐ (High)	⭐⭐ (Low)
Cost	⭐⭐ (More expensive)	⭐⭐⭐⭐⭐ (Budget-friendly)
Trust	⭐⭐⭐⭐ (Higher trust)	⭐⭐ (Often ignored)
Ease of Setup	⭐⭐ (Takes time)	⭐⭐⭐⭐⭐ (Quick & easy)
Ad Blockers	⭐⭐⭐⭐ (Rarely blocked)	⭐⭐ (Easily blocked)
Best For	Brand awareness, storytelling, engagement	Fast visibility, direct promotions, retargeting

Case Studies and Examples: Native ads vs display ads examples​

Now, let’s see real-world examples of brands successfully using Native Video Ads and Display Ads to achieve their marketing goals.

Netflix’s “Narcos” Facebook Native Video Ads

Goal: Promote the launch of a new season of Narcos by creating hype and engagement.

Strategy:

• Netflix released short, documentary-style native videos
• Added historical footage and actor interviews
• The ads blended naturally into Facebook and Instagram feeds
• Viewers didn’t immediately recognize them as ads

Results:

• Millions of organic shares, boosting viral reach
• Increase in show viewership

Taco Bell’s Snapchat Native Video Ads

Goal: Promote new menu items and reach Gen Z audiences.

Strategy:

• Taco Bell created interactive native video ads on Snapchat
• Users could see themselves with fun Taco Bell filters
• The ad format felt like a normal social media experience

Results:

• Massive brand exposure with high user interaction

Amazon Retargeting Display Ads

Goal: Convert users who viewed a product but didn’t purchase.

Strategy:

• Amazon used Google Display Network (GDN) and Facebook retargeting ads
• These ads popped up on various websites, making sure Amazon’s products stayed on everyone’s radar.

Results:

• Increased product sales
• Significant reduction in abandoned cart rates

Coca-Cola’s Banner Display Ads

Goal: Maintain brand awareness across multiple digital channels.

Strategy:

• Coca-Cola ran highly visual display banner ads
• Added their iconic red branding and catchy slogans
• These ads were displayed on popular news websites, blogs, and mobile apps
• It was not for direct sales but constant brand exposure

Results:

• Billions of impressions worldwide
• Strong performance in global markets

Relatable Reads: Short-Form vs. Long-Form Video: Which Drives Better Results for Your Business? – LocalEyes

When to Use Each Ad Type?

It really depends on who you’re trying to reach and where you’re putting your ads. Those factors will help you figure out what kind of ad format you should go for.

When to Use Native Video Ads:

• To capture attention and create brand awareness
• When targeting social media users only
• If your ad requires storytelling
• When you want higher engagement and shares
• If you have a higher budget and creative resources
• To improve brand trust and credibility

Best Platforms for Native Video Ads:

• Facebook In-Feed Video Ads
• Instagram Reels & Stories
• TikTok Ads
• YouTube Ads
• Snapchat Video Ads
• Native Advertising Platforms

When to Use Display Ads:

• When you need fast, cost-effective visibility
• If you want to retarget website visitors
• To drive direct conversions and clicks
• For a broad audience reach on news and blog sites
• When you want easy-to-track performance
• When you have a limited budget

Best Platforms for Display Ads:

• Google Display Network (GDN)
• Facebook Audience Network
• Programmatic Display Advertising
• News Websites & Blog Networks

Which One to Choose?

Goal	Best Choice
High engagement & storytelling	Native Video Ads
Fast, low-cost brand visibility	Display Ads
Social media marketing	Native Video Ads
Google & website advertising	Display Ads
Higher CTR & interaction	Native Video Ads
Retargeting website visitors	Display Ads
Longer brand recall & trust	Native Video Ads
Easier to set up & track	Display Ads

Frequently Asked Questions