Why Native Advertising Spend Is On The Rise

By Emma Flanagan

Native advertising budgets continue to rise. Advances in ad-technology, the growth in mobile advertising and the launch of programmatic native all point to a significant increase in native spend in the future.

Here's why.

Association of National Advertisers (ANA) published a report at the end of 2014, stating that 63% of marketers were planning on increasing their native budgets. New data launched from BI Intelligence indicates that native spend is on the increase and set to reach an estimated �10.7 billion by the end of 2015. Other studies show that by 2018 the native ad space will be worth a staggering �21 billion in the US alone - quite an increase from the modest �4.7 billion spent in 2013.

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Why is native advertising ad spend increasing?

Performance of native

The main reason for growth in native spend is simply down to performance. Data compiled by DoubleClick and Opera Celtra found that desktop native ads outperformed traditional display ads; display ads only provide an average 0.9% click through rate (CTR). Compare this to standard native CTRs of up to 3% and it's a significant difference.

Mobile native advertising increase

Native is the best ad medium for mobile. Feeds are fast becoming the most effective way for brands to distribute content and mobile advertising is all about the feed. Mobile users surf on average 58 minutes per day on their smartphone and 27% of digital content is consumed via mobile, compared to 22% in early 2014.

In-feed native ad placements perform exceptionally well on the small screen, particularly if you compare them to the performance of display on most mobile devices. Data shows that mobile native outperform traditional mobile display ads - providing a 1% higher CTR.

Programmatic native advertising: scale and efficiency

The future for native advertising is in programmatic trading. [http://www.adyoulike.com]Programmatic native advertising works by serving native ad placements across sites on an impression basis, using real-time data and technology so that only the most relevant native advertisement is displayed to a specific user.

It promises to boost user experience, scale content distribution and reduce time management of native campaigns. The advent of programmatic RTB 2.3 means that more and more digital ad spend is going to move in the direction of native campaigns.

Add value to your digital campaign

As a brand, it is important to create a campaign that is valuable - to both the brand and the end consumer.

Native adds value to any campaign and enhances the overall site experience. Recent research conducted by the Interactive Advertising Bureau (IAB) found:


Business - 45%

Entertainment - 44%

General news - 27%

Overall - 38%


The report also found that sponsored content actually increased favourability amongst brands. 55% of users believe it boosts the brand as an authority, 55% argue this makes the brand appear more trustworthy and 56% said the content appears more relevant to the site.

In-feed native has the power to be relevant, authoritative, authentic and trustworthy - everything a good digital ad should be.

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