According to a three year study carried out by leading ad technology platform Nativo , the overall native spending in on the rise in the world. the total increase is over 600% from 2014 to 2016. Nativo gathered data from over 600 brands. this is the first time such a comprehensive study has been undertaken.
This is the first time that a native ad spending has been broken down in this detail , this study has eye opening results as it creates benchmarks for the industry. “What was most surprising from the study is how within specific verticals, adoption between major competitive advertisers also highly varied,” according to Justin Choi, CEO of Nativo.
While the native ads are rapidly growing , the social media sites such as Facebook are promoting social ads as an alternative to the native reach, the other platforms also provide great content options. the social media platforms have huge followers and the reach is immense so the brands make targeted campaigns for them while getting huge returns. “From a technology perspective, we’ll see these initiatives increasingly housed together in more holistic tech stacks, but they remain distinct functions along the supply chain,” Choi said.
Key Findings Of The Study:
- Year over year, Food & Drink grew their share of native ad spend the most by 9%. Food & Drink is followed by Travel and Business, which both grew their share by 4%.
- Automotive (OEM), Tech B2B, Entertainment, Tech B2C and Finance and Insurance, all early adopters of native advertising in 2014, saw their aggregate share of budget decline by 20%, from 57% in 2014 to 37% in 2016.
- Conversely, slower vertical adopters of native — Business, CPG, Travel and Food & Beverage — grew by 24% to reach 45% aggregate share of budget in 2016.
- Combining all related campaigns (OEM, After-Market, etc.), Automotive remains the most active vertical year over year.
- Top performing verticals in terms of engagement include CPG, Entertainment, Travel, Food & Drink, and Tech B2C.