The Rise And Rise Of Native! Why Three-Quarters Of All Ads Will Be Native By 2021

The Rise And Rise Of Native! Why Three-Quarters Of All Ads Will Be Native By 2021
B&T Magazine
By B&T Magazine
SHARE
THIS



A new study has found that old school digital ads are fast being replaced by native advertising – ads that look, feel and read like the content that surrounds them.

The study by news site Business Insider’s research division BI Intelligence found that by 2021 some 74 per cent of all ads in the US market will be native.

BI Intelligence said its research was based on data from the Interactive Advertising Bureau (IAB), PwC and global insights firm IHS.

The report found that it’s Facebook’s and Twitter’s prediction for native ads that is driving the growth in native, particularly native video ads.

Native-ad-chart

The key takeouts from the report included:

• Native-display ads, including social native and native ads in-feed on publisher websites, will make up the bulk of native ad revenue over the coming five years.

• Native display ad revenue in the US will rise at a five-year compound annual growth rate (CAGR) of 17 per cent during this time period to eclipse $US36 billion. The rise of native video ads, particularly on social platforms, will be one of the main drivers of this growth.

• Social platforms generate most of their revenue from native ads and will continue to dominate overall native ad spending through 2021. Social platforms like Facebook, Instagram, Twitter, and Snapchat’s dominance on mobile devices, where the entire experience is within a feed, will help propel social’s contribution to overall native ad revenue through 2021.

• The report found that sponsored content, where an advertiser pays for a piece of content, will be the fastest-growing native format over the next five years. However, it also found that the high cost to produce these ads and the limitation in inventory could possibly be limiting to the format.

 

Please login with linkedin to comment

ADMA Advertising Standards Bureau Chloe Uy creative directors MasterChef Australia

Latest News

Creating Efficiencies in the Age of Consumer Privacy
  • Marketing

Creating Efficiencies in the Age of Consumer Privacy

In this opinion piece, Jess Miles, Country Manager ANZ of Integral Ad Science, reflects on the questions surrounding consumer data. The ability to collect consumer data online has revolutionised digital advertising by enabling customised targeting strategies and data collection. This reliance on data has been the cornerstone of many audience targeted strategies enabling marketers to […]

Opinion

by Kathleen Farmilo

Kathleen Farmilo
Jye Smith Named President Of Vibewire Board
  • Media

Jye Smith Named President Of Vibewire Board

After ten years of board leadership of the young entrepreneurial collective Vibewire, Founder & Co-CEO of Disruptors Co. Gavin Heaton is passing the torch to fellow strategy and creative leader Jye Smith, Founder and Director of branding and design studio DOUBLESTAR CO, who will now take over as Board President.

Australian CDP Lexer Raises $33.5M In Funding
  • Technology

Australian CDP Lexer Raises $33.5M In Funding

Lexer, the Customer Data Platform for brands and retailers, today announced it has raised AU$33.5 million in Series B funding, bringing its total funding to AU$43 million. The round was led by Blackbird Ventures and King River Capital, with Series A investor January Capital also participating. Blackbird’s Rick Baker will join the Lexer board. The […]