Native advertising was established to make ads appear more natural on a web page. Rather than making it overtly obvious that the ad is not part of the original page, native advertising uses the page’s design and layout to design the ad so that it appears as just a part of the webpage. Programmatic native advertising takes this to the next level by targeting a person based on specific data parameters, with the goal of providing the right message to the user in the context of the page/ and or platform that they are on. This provides relevant and helpful information to the user at the right time.
Increase demand for more native experiences will drive programmatic native spend, reaching $24 million by years end, compared to 13.24 billion in 2016 – eMarketer
In 2018 native digital display ads will make up more than half of all digital display ad spending in the United States. This stems from both publisher and advertiser demands. Publishers are pursuing higher value and more mobile friendly content while advertisers are interested in more engaging, less intrusive ads. This is a trend that programmatic media buyers need to pay attention to as it will be front and center in 2018 media plans. With the advances of machine learning and AI native advertising will become even smarter and which will likely increase the already enticing engagement metrics. Also, it is easier for publishers to guarantee a viewable and fraud free experience providing brands with a more reassuring level of transparency.
Native Gained Popularity Through Social Media Platforms
Native advertising has gained traction through social media platforms, the trend having started with Facebook. In 2017, 84.2% of native display ads appeared on social platforms, which resulted in a $18.59 billion spend. Because most people consume social media on their phones, the focus native advertising development is equally been mobile heavy. In 2017, $19.5 billion was spent on native mobile display which encompasses 88.3% of all native advertising, and the share is only growing. However, the social platform trend is slowly shifting as other publishers outside the social platform walled gardens are incorporating in-feed ads and videos allowing media buyers to scale their native programmatic ad buys, especially for those brands who are seeking higher rates of engagement. In the coming months, it is projected that more non-social publishers will quickly move to accommodate native programmatic ad buying.
As non-social sites incorporate programmatic native ads, social platforms continue to incorporate these ads to accommodate demand from both publishers and advertisers for this advertising format, and we predict that the trend will be that in 2018 native programmatic advertising will continue to take share away from display ads. The numbers back up this trend. It is estimated that the total ad spend will reach $24 billion which will make up more than 50% of all display ad spending in the United States.
Read about the other nine trends that we are predicting will be the key to success for programmatic buying teams in 2018 here.
If you haven’t already, there is no time like 2018 to get on the programmatic bandwagon. If you need to get started Digilant University has all the information you need to get up to speed on native advertising and more than 30 other topics. Need more information, you can also reach out to us here.