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The digital environment afforded by social networks has created an opportunity to understand more clearly the impact of social media native advertising on advertising processing outcomes. Thus, the current study integrates native advertising with engagement literature to compare engagement outcomes between feed and banner placements before analyzing engagement outcomes of sponsored social media posts by advertising objective. This work aims to contribute to advertising effectiveness literature arguing for the importance of engagement as a measure of effectiveness.

Facebook advertising data were collected from a convenience sample of 10 Facebook advertisers that accounted for roughly $414,000 in advertising spend. Panel data, which are also called longitudinal or cross-sectional time-series data, used 26 months of data from the 10 advertisers to measure relationships between native advertising exposure and digital consumer engagement with advertising by advertising objectives of brand awareness, link clicks, conversions, post-engagement and video views.

Exposure to native advertising was a strong predictor of advertising processing and consumption using the three variables of interest: clicks, comments and shares. Ads reaching consumers while natively consuming content in their feed resulted in statistically significant improvements in impressions and clicks when compared to banner ads. Exposure to native ads was significantly related to all engagement outcomes of interest, except for advertisers who chose post-engagement as their advertising objective.

The results suggest that for advertisers seeking clicks, post-engagement objectives should likely be avoided. For this group, impressions were not related to link clicks but were related to comments and shares. Native advertising placements in the feed, however, are generally more effective than banner ads on Facebook for advertisers seeking engagement.

This research is one of few studies to use longitudinal advertising data to explore engagement effects using real-world data collected from a diverse set of Facebook advertisers over a 26-month period. This study shows that interactive marketers using a social media feed to reach consumers can expect positive outcomes in advertising consumption, affective and cognitive processing and advocacy, but those outcomes may vary by advertising objective.

Given the uniqueness of the data set, the findings contribute to native advertising literature and to the literature on digital consumer engagement with advertising in social media. The study also provides empirical support for the efficacy of native advertising.