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Native Advertising Revenue is Rapidly Growing: No Signs of Slowing Down

Native Advertising Revenue is Rapidly Growing: No Signs of Slowing Down

Posted by on October 18, 2017

Native Advertising Revenue is Rapidly Growing: No Signs of Slowing Down

Without a doubt, native advertising is the way to go if you want your ads to be seen without disrupting the flow of your website. They not only ensure readers will stick around long enough to check out what you have to say, they don’t leave a bad taste in people’s mouths, causing them to go elsewhere for content.

By embedding ads directly into the surrounding content, your audience is consuming brand information and offers without even realising it. It is simply a fantastic way to tell your story to people, leveraging a  partnership with an audience and publisher to drive engagement.

Given the high success rate of native ads, it’s no wonder revenue is on the rise thanks to their increasing usage.

The days of banner ads and popups are coming to an end – according to research by Solve Media, you’re “475.28 times more likely to survive a plane crash than you are to click on a banner ad.” And thanks to ad blocking software, obvious and intrusive ads are more and more likely to never be seen.

What sort of potential is there with native ads in the ecommerce world?

We know digital advertising is huge – we also know native advertising is an incredibly valuable tool when used in conjunction with digital ads. It’s now clearer than ever that native advertising, when used on digital platforms, is very powerful.

In a study done by IAB Australia, researchers found that digital advertisements grew to nearly 50% of Australia’s total advertising market in 2016. Pair this with the fact that consumers are 25% more likely to engage with native ads than their traditional counterparts and you have a recipe for success.

These days, people are consuming content almost 24/7. Look almost anywhere and you’ll find someone with their nose to their phone, either reading the news or a blog, or browsing social media – each of these platforms are perfect for embedding native ads.

Mobile devices have an average click-through rate of 1% while more traditional ads are only getting a rate of 0.15%. This may not seem like much but when you’re working with ad revenue, this is huge.

Native Content

Things are only going to improve

A study conducted by AdsNative found that 92.3% of publishers polled saw their native ad revenue increase in the past year alone. This shouldn’t come as a surprise seeing as how native ad spending is predicted to reach over $59 billion in 2018.

So what does this mean for B2B businesses looking to boost sales through native advertising? Staying up to date is incredibly necessary.

Look at Google and Facebook for example – reports by IAB/PwC showed that “103% of the industry growth in the United States in the first half of 2016” came from these two tech giants alone. This is because companies with a proven ability to effectively utilize personalised ads on mobile are at the top of the food chain.

Today, Facebook’s mobile native ads are bringing in close to 80% of their ad revenue.

It’s not hard to see why native ads bring revenue

Nearly everyone has a smartphone on them at all times. Because of this, it’s the most used tool for consuming content.

Pair this with the fact that people are reading more than ever, and that native ads inherently tap into the reader’s brain on a subconscious level, and it’s easy to see why they’re so successful.

Studies have shown that native ads require the use of both hemispheres of the brain, while banner ads and popups are simply “seen” and not “read”. This is due to the fact that native ads are viewed the same way as editorial content.

With new studies and finding coming out all the time regarding the effectiveness of native ads, it would be a huge disservice to your business if you were not taking advantage of them for revenue.

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