Native Ad Spend Poised for Continued Growth, Majority Share of Digital Display Market

March 24, 2017

This article is included in these additional categories:

Advertising Trends | Creative & Formats | Digital | Programmatic & RTB | Social Media | Spending & Spenders

US native digital display ad spending is predicted to continue to climb through this year and next to exceed $28B, per new eMarketer estimates. In so doing, native ads are expected to take a majority share of all digital display ad spending this year, per the forecast..

The vast majority of native display ad spending is expected to be allocated to social media: last year, 86% of the $16.2B market went to native social display ads, and that share should only drop slightly this year (84%) and next (82%).

Growth rates should remain high though soften over time, as one would expect: after a 36% rise this year, native ad spending is projected to climb another 28% in 2018.

These projected increases are supported by survey data indicating expected increases of more than 20% for custom content/native advertising, and reflect some changes in the nature of advertising, as marketers seek more relevant and less disruptive ads. Thanks to largely mobile social platforms, native mobile is growing rapidly as well, comprising almost 9 in every $10 spent on native display advertising this year.

Native programmatic is also rising in popularity due to the impact of social ads bought this way; as such, the vast majority (84%) of native digital display ad spending is bought programmatically. Removing the admittedly large influence of social media in native display, only a minority of spending is programmatic.

About the Data: eMarketer defines native display as “digital display ads that follow the form, feel and function of the content of the media on which they appear.”

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