For years, brands invested heavily in glossy creative. Ads had to look polished, cinematic, and on-brand. But scroll through TikTok, Instagram Reels, or YouTube Shorts today, and you’ll notice something different: the ads getting the most attention often look like the videos made by everyday people. Think iPhone footage, rough cuts, a friend talking straight to camera.

According to Forbes, consumers looked at native ads 53% more often than display ads, with an 18% higher lift in purchase intent and a 9% lift in brand affinity.

On platforms like TikTok, Instagram, and YouTube Shorts, content that feels native, often unpolished and styled like user-generatedcontent, outperforms traditional creative. What appears less polished to the eye is proving more effective across every stage of the funnel.

Why Native-Looking Ads Deliver Good Results

Capturing Attention in Social Media Feeds

In a feed environment, the first few seconds determine whether someone keeps watching or scrolls past. Highly polished creative often signals “advertisement” immediately, which can trigger ad fatigue or skipping behavior. Native-looking ads, on the other hand, mirror the format and tone of surrounding content. Because they feel like part of the feed rather than an interruption, users are more likely to pause, watch, and engage. This ability to capture attention without resistance makes native ads especially powerful at the top of the funnel, where visibility is the foundation for brand recall and awareness.

Relevant article: Ad Fatigue in Digital Marketing: Why It Happens and How to Fix It.

Building Trust with User-Generated Content (UGC)

Nielsen’s research shows 92% of consumers trust recommendations from peers more than brand communication. UGC-style ads tap into this bias, presenting products in everyday contexts that feel relatable. Emarketer reports that 28.4% of ecommerce marketers see UGC visuals as the most impactful factor in purchase decisions, with 62% of consumers using UGC to judge value for money.

Driving Conversions with Native Advertising

Emplifi found that UGC generates nearly 4x higher engagement rates on Instagram and contributes up to 50% of online revenue in categories like fashion and apparel. The ability to quickly produce and test variations means brands can identify effective hooks, CTAs, and formats faster - making performance media more efficient.

Aligning with Algorithms

Social platforms optimize for engagement, not polish. Content that looks native is more likely to earn comments, shares, and favorable placement in algorithms, further amplifying reach at no additional cost. A study by sharethrough found 32% of consumers were willing to share a native ad with friends or family, compared to just 19% for banner ads.

Should We Rely on Native Ads More Than Product Ads in Paid Search and Paid Social?

The rise of native-looking ads has led many marketers to question whether traditional product ads are becoming obsolete. While UGC-style creative offers strong engagement and relatability, relying solely on it would be a mistake.

Product ads, especially in Paid Search and Paid Social, remain essential for high-intent moments. When users actively search for products or browse shopping feeds, clear product-focused creative ensures they see pricing, availability, and value propositions upfront. These ads capture demand that already exists, something native ads alone can’t replace.

Native ads shine in generating awareness, sparking interest, and nudging undecided shoppers. But product ads remain unmatched when it comes to driving last-click conversions, promoting sales, and capitalizing on peak shopping intent. Think of native ads as demand creation, and product ads as demand capture. Without product ads, brands risk losing shoppers who are ready to buy but need clarity on offers or trust signals like reviews and delivery options.

The most effective strategy combines both: native-looking ads to fuel the funnel by building attention and trust, and product ads to convert that attention into revenue. This balance ensures marketers aren’t over-indexing on relatability at the expense of clarity, or vice versa.

How Should Advertisers Run Native Ads and Product Ads Together for the Best Results?

The shift toward native-looking, UGC-style ads doesn’t mean abandoning polished product ads. It means running them in tandem to reflect how consumers actually move through the funnel. Here’s how advertisers can achieve that balance:

Design Creative for Every Stage of the Funnel

High-production assets and product-focused ads still matter for bottom-funnel intent and brand storytelling. UGC-style ads complement this by excelling in the middle and upper-funnel, where relatability and authenticity drive discovery and trust. A mix of both ensures you capture attention, nurture interest, and convert efficiently.

Build a Modular Creative Testing Framework

Break creative into testable components - hooks, demos, testimonials, CTAs - so both native and product ads can be optimized quickly. Instead of betting on a single polished asset, test multiple variations across formats to find the right balance.

Relevant article: Crucial A/B Test Ideas to Boost Paid Advertising Performance

Partner with Micro-Creators and Customers for Native Content

Use micro-creators and customer content for authentic UGC, while maintaining strong brand-controlled product ads. Micro-creators help you scale relatable ads affordably, while product ads lock in purchase-ready shoppers.

Relevant article: AI vs. Human Influencers: What BrandsNeed to Know in 2025 and Beyond

Measure Both Native and Product Ads with Incrementality

Move beyond vanity metrics. Track metrics like thumb-stop ratio and incremental conversions for native ads, and incremental ROAS for product ads. Together, they reveal which mix truly drives additional sales instead of just claiming credit.

Read our guide: Mastering Incrementality in 2025 and Beyond

Build Creative Velocity into Operations

Success depends on speed and iteration. Run continuouscycles of native and product ad testing instead of treating campaigns asquarterly launches. This operational agility ensures your mix evolves withplatform algorithms and consumer expectations.

Native Ads and Product Ads as a Full-Funnel Strategy for Growth

Native-looking ads have proven their strength across the funnel. They capture attention in crowded feeds, feel more trustworthy because they echo peer recommendations, and often convert more efficiently than polished creative. By blending into the flow of content, they align with platform mechanics and make it easier to drive engagement that sometimes extends into earned reach.

Marketers who build systems to test and scale this type of content can stay ahead of shifting consumer behaviour and platform trends. Relying only on high-production campaigns risks missing the speed and relatability that audiences now expect. A balanced mix - where polished creative strengthens brand storytelling and native-looking ads drive performance - helps ensure both immediate results and long-term impact.

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Want to see how native-looking ads can drive full-funnel performance for your brand? Reach out to us!

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About Crealytics

Crealytics is an award-winning full-funnel digital marketing agency fueling the profitable growth of over 100 well-known B2C and B2B businesses, including ASOS, The Hut Group, Staples and Urban Outfitters. A global company with an inclusive team of 100+ international employees, we operate from our hubs in Berlin, New York, Chicago, London, and Mumbai.