Research from Business Insider Intelligence finds that native ads perform better than non-native ads and so command higher prices.
The report from BI Intelligence examines each of the different native ad formats and looks at spending trends for each. BI finds that spending on native ads will reach $7.9 billion this year they predict that it will grow to $21 billion in 2018. According to BI, Social will remain the biggest slice of this spending but native-style display will grow its share rapidly.
According to the report’s author, Mark Hoelzel, key takeaways include:
- Social native ads will account for the biggest share of native ad revenue during this time period, but native-style display ads will grow the fastest.
- Social-native, including Facebook News Feed ads and promoted tweets on Twitter, will draw a majority of native ad revenue between 2013 and 2018.
- Native display ads, like the splashy native ads on Yahoo’s news pages and apps, will see the fastest ramp-up.
- Sponsored content, like some of the paid stories and sections on BuzzFeed and The New York Times (and Business Insider), has also attracted considerable attention.
- Native ads perform better than traditional display. This is particularly true on mobile. Desktop native click-through rates (CTRs) averaged a respectable 0.15%, while native-mobile ads had CTRs over 1%, according to recent data from Polar Media Group and Celtra, respectively.
- Consumers hold a generally positive attitude toward native advertising, according to survey data, but advertisers and publishers must ensure that ads are relevant and are purchased by trustworthy brands to avoid the risk of any mainstream backlash.