Native display ads to spike by a third in 2017 | Ad Tech | News | Rapid TV News
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Native digital display ad spending in the US will grow 36.2% this year to reach $22.09 billion, according to eMarketer’s inaugural forecast.

emarketer programmatic adsFor the first time this year, native ad spending will make up more than half (52.9%) of all display ad spending in the US, the firm said.

“Growth of native digital display is being driven by publishers’ pursuit of higher-value and more mobile-friendly inventory, as well as by advertisers’ demands for more engaging, less intrusive ads,” said eMarketer principal analyst Lauren Fisher.

An overwhelming portion of US native display ad spending goes to social networks, driven mainly by Facebook. This year, native social network display ad spending will reach $18.59 billion, representing 84.2% of all US native display. Importantly, social’s share of native is falling and will drop to 82.2% next year, as non-social (specifically in-feed and sponsored content) grows faster.

“We’re seeing a huge ramp up in non-social publishers adopting in-feed ads and video,” Fisher said. “This, coupled with continued advancements on the programmatic native front, will accelerate non-social native ad spending.”

Since native advertising is largely purchased on social platforms, it’s also almost entirely mobile. Native mobile display ad spending will reach $19.50 billion this year, representing 88.3% of all native advertising – with that share growing. And native mobile will represent 64.5% of all US mobile display ad spending this year.

“Greater demand for native formats such as in-app rewarded video ads, and greater momentum around redesigning the mobile experience for a more in-feed and mobile-first world will also draw greater ad dollars to native inventory on mobile devices,” said Fisher.

Nearly all US native display ads are purchased programmatically, thanks to the heavy influence of social ads, the vast majority of which are transacted via APIs. This year, native programmatic will represent 84.0% of all native digital display ad spending, or $18.55 billion. However, excluding social, programmatic accounts for under half of all native non-social display ad spending.

“It’s been a slow start to enabling programmatic buying for non-social native display ads, but with the majority of buying platforms quickly moving to accommodate native ads, we see that changing in the next several months,” Fisher said.