How native advertising is set to dominate digital media
Native advertising is predicted to make up over 50% the display media bought across Europe by 2020.
We may only be a few months in to 2016 but it’s already shaping up to be a breakthrough year for native advertising. A new report forecasts a massive €13.2 billion native ad spend around Europe by 2020 – spectacular growth of 156% compared to the €5.2 billion companies spent on native ads in 2015.
In Britain alone, the market was worth £1.2 billion last year. That figure is set to more than double to £2.8 billion by 2020, according to the study, carried out by Yahoo and Enders Analysis and unveiled at the Mobile World Congress in Barcelona.
The move to mobile
That’s sweet music to the ears of online publishers who are currently struggling against a number of advertising headwinds, most notably the marked trend among consumers away from the larger screens of laptops and PCs to the much smaller screens of mobile devices.
Display advertising is challenged on smaller screens, so native in-feed advertising makes far more sense from both viewabilty and user experience perspectives.
Additionally, surveys are finding that consumers actually appreciate native as adding value, compared to blaring and brash display ads they’re not overly fond of – one reason fewer people are clicking them.
A true native execution is the ultimate ‘opt-in’ advertising and a world away from the intrusive splurges which shield entire homepages or launch a video that’s impossible to switch off. If the reader choses to engage with on-site, clearly labelled sponsored content, that’s exactly what they get.
The future is native
The new study found that native advertising will amount to 52% of all display advertising in European markets by 2020, and – reflecting the swing to mobile – native ads for mobile will soar from €1.5 billion last year to €8.8 billion in less than four years’ time.
So, it’s increasingly looking like publishers and advertisers are embracing a native future together, with everyone benefiting – even consumers!