Two years ago, the Federal Trade Commission issued lengthy guidance on proper disclosure and other advisories targeting native online advertising. The FTC was not degrading the merits of this advertising strategy but simply wanted to ensure that advertisers and publishers communicated with honesty and transparency.

The following is an overview of the current state of native advertising, including data supporting its popularity among marketers.

Total Ad Revenue Forecasts

The data is clear that online advertisers have turned much of their attention to native spots in lieu of less visible and less engaging traditional ad placements. Business Insider recently predicted that 74 percent of all ad revenue earned by online publishers will result from native advertising by 2021.

Native-style display ads, sponsorship campaigns and social network spots are the three primary categories contributing to current and future spending on native advertising.

Digital advertisingNative Spending Soars on Social Media

Increased use of sponsored posts that appear in user timelines is a main reason that native display spending has grown rapidly on social media. Facebook, Twitter, and Instagram are among popular channels for delivering native ads. The following graphic from eMarketer shows that over $22 billion was spent in total native display advertising in 2017, including $18.59 billion on social network placements. This number represents significant growth from 2016, when $16.21 billion was spent on native digital display.

Projections for 2018 indicate no signs of slowing down for social network native either. The eMarketer forecast calls for $23.22 billion in spending on social network native display ads, and a total of $28.24 billion in online native display.

Primary Native Advertising Formats

A recent Native Advertising Institute and FIPP study of revealed the primary formats that marketers turn to in for native campaigns. As seen in the graphic below, written content is cited by 69 percent of respondents as a key native component, which with overall emphasis on content marketing. Advertorials, which appear like regular editorial posts on a site or blog, are a primary form of written native advertising.

Also not surprising is the high response for video content. Video consumption by users and production by companies continues to soar. Thus, native video content aligns efficiently with natural interests of users who prefer video marketing content over must other types. Multi-media and multi-platform campaigns were also highlighted by the majority of marketers as integral to their native advertising efforts.

Digital advertising

As the data shared here clearly reveals, native advertising is not only thriving now, but it is expected to continue to take over as the dominant digital advertising format into the future.

 

Align your campaigns with relevant publishing partners and targeted audiences with natural interest to achieve success with native campaigns. As an expert in digital strategy, Response Mine can help you grow your business today!

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