Native content has gone from strength-to-strength in recent years, with the trend set to continue according to Facebook – who predict the arena will be worth $53 billion by 2020.
IHS Technology undertook the research on behalf of the social media company, in a study titled The Future of Mobile Advertising is Native. It predicts the ad market will increase to comprise of nearly two-thirds mobile display ads by 2020, and in the next five years 75.9 per cent of digital ad spend will be mobile-based.
What does this mean for the Asia-Pacific region? A lot it seems, with the area predicted to have the largest regional increase in native ad spend. The study predicts we will undergo a 177 per cent annual growth rate within the next five years, worth $14.1 billion.
Facebook comments of the finds: “The growth of the native ad market – to $53 billion by 2020 – is a mandate against bad ads. Native is the best experience for people because it respects their experiences, especially on mobile. For publishers, this can mean longer time spent on your property and increased revenue. For advertisers, native can mean more value for your business.”
But as to why native content is proving so popular comes down to engagement. The study determined that engagement is between 20 to 60 per cent higher with native ads in comparison to standard banner ads. Native is also believed to achieve higher retention and click-through rates.
Big Mobile CEO told AdNews that with native content growth will also come developments within the arena. "What is considered native and what is considered rich-media format display will start to blur considerably [in the next five years to 2020]. Brands are advertising to stand out. They need to not just get an ROI in terms of performance, but they need to get attention.”
