Native advertising, or third-party ads that match the format and feel of the media in which they appear, are the most popular form of display advertising in the US. The ads, which can support either brand awareness or direct response goals, will account for nearly $44 billion or 62.7% of total US display ad spending in 2019, according to eMarketer – a healthy 24% jump since last year. Facebook dominates the native advertising market, but virtually all social media platforms show native ads almost exclusively, accounting for 96% of social digital display ad spend.
If done well, native ads usually perform better for advertisers and offer a more seamless experience for the user. Several studies have shown that users consider native ads less intrusive, more engaging and more shareable. Given these benefits, it is not surprising that advertisers are doubling down on native advertising. So much so that eMarketer had to revise its growth estimates upward for the category for both 2018 and 2019. The publication predicts that native ads will become even more mobile and less social in the next two years, given that nonsocial native display ads had the fastest growth rate of any channel in the category.
In a nod to its growing importance, eMarketer broke out video in their estimates of US native digital display ad spending for the first time this year. Native video ads are growing roughly in line with the video ad market as a whole and the publication expects advertisers to spend 38.7% of their US digital video ad budgets on native formats in 2020.
Here at Net Conversion, we have had some notable successes with native advertising, especially with native video ads. Their visual appeal and rich storytelling features appeal to consumers, while the sophisticated targeting and customization options are very attractive to advertisers. If you have not leveraged native ads in your marketing yet or have questions about them, don’t hesitate to reach out to your Net Conversion account manager!