Native advertising is expected to grow to take up 65% of the ad spending on display next year, up from 48% three years ago, according to reports by eMarketer. U.S advertisers will spend more on native display, increasing the expenditure by 25% to get to $43.9 billion.
Native ads will also grow in their share of non-social digital ad spending for display to 34% next year, up from last year’s 26% according to the forecast. Most app ad creatives prefer to but non-social native ads programmatically.
Facebook will benefit the most from the growth in native ad expenditure with 96% of it going to social, digital display.
eMarketer describes native advertising like digital ads which match a specific user experience design and look like the platform’s content. The company thinks that this format is overtaking digital media as brands look to get to an audience that has changed the way it consumes information from mobile and social media platforms. Native formats are gaining popularity on apps, but according to eMarketer, the traditional display is still trading programmatically. The company is not expecting that native ads will completely take over the display, but in-stream video inserts will become popular.
Social ads affect non-social native campaigns which may be sold more programmatically. Advertisers are getting more experience with self-serve ads outside of social media platforms. Buy-side platforms like Bidtellect allow the advertiser to reformat their assets and distribute them to other channels.
The forecast by eMarketer rings true with previous research that showed significant growth in native ads on mobile. It is expected that by 2020, 89% of native ads in the U.S will be on mobile. Additionally, 88% of native will be sold on self-serve platforms by 2020, a one percent increase from last year. Native’s share that will come from social will decline by 3% to 74% next year.