The State Of Native Advertising in 2017
 
2016 was a groundbreaking year for native advertising. It had its ups and downs, but one thing is for sure – native is growing, so much in fact that according to Red Branch Media, 56% of total U.S. display ad revenue was in 2016 spent on native advertising alone, and Business Insider Intelligence predicts this will increase to 74% by 2021.
 
In this post we take a look at the state of native in 2017 by sharing trends and analysis from the past year mixed with regular updates throughout the year, to make sure it stays relevant and up to date. Use this article as supporting data and to keep up with the latest trends.
 
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Data Supporting Growth of Native in 2017

 

  • When engaging with content accompanied by companion display ads, users demonstrated 17% more purchase intent. – Source (August 18)
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  • Branded content has 69% unaided awareness and 51% persuasion, in a recent IPSOS + Polar report. – Source (August 18)
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  • Digital Content Marketing revenues are projected to grow at a 22% compound annual rate from 2017 to 2021 reaching $24b in 2021. – Source (August 18)
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  • Norwegian division of MediaCom recently reported that its revenues increased by 23% due partly to the production and distribution of commercial content such as native advertising. – Source (August 11)
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  • [On a survey of agencies, what one thing should brands do this Christmas] 42.9% of respondents named branded content as the preferred technique, followed with 28.6% saying Influencer campaigns. – Source (August 11)
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  • Finance specialist Dianomi serves 3.5 billion ad units/monthly. – Source (August 4)
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  • A Nativo & comScore study explored the pairing of native ads pair with on-site branded content. The results, the pairing drives an increase in unaided awareness 11%, online ad recall 18% and purchase intent 13%. – Source (August 4)
    • ^ This might seem obvious but in planning campaigns, factor this in. Consider more of publisher amplification than off-network.

     

  • The number of advertisers buying native formats has leaped 74% between the start of 2016 and Q1 2017. – Source (July 14)
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  • Time Inc study reveals 2/3 consumers trust branded content more than traditional advertising. – Source (June 30)
    • ^The same study concluded that 92% believe brands have expertise on topics and add value to content.
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    • 89% believe custom content is a great way for brands to break through the clutter.
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    • 88% indicating that custom content feels like a good way for new brands it hasn’t heard of to reach them.
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    • 90% of those polled like the idea of custom content as a way for brands to engage them.
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    • 84% agreeing that custom content is a way for brands to engage them, and 72% wanting video and infographics to better explore a story or data.
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    • Gen Z-> 93% saying they want to see brands do something new, unique, or creative to get their attention.

     

  • Branded Content on YouTube sees 85% increase in viewership. I.e. brands are getting better at creating content.
    Source (June 9)
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  • Since employing the Taboola Feed on its pages last month, the New York Daily News saw a revenue increase of 26% and engagement of 40% on mobile. – Source (May 24)
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  • 1/3 of millennials have purchased from a brand after seeing a sponsored post. – Source (May 22)
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  • Media companies social branded content posts, grew 77% in the last 6 months – Source (May 18)
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  • Via the Polar + IPSOS Connect study. Consumer awareness of a brand increased to 69% after engaging with branded content, while purchase intent was 51%. – Source (May 17)
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  • MindEdge’s recent study show that 61% of millennials recognize that terms like “promoted” and “sponsored” refer to native ads. – Source (May 11)
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  • Google DFP has had a 7x increase in native impressions since May 2016, with average CTRs are 4x higher than traditional banner ads. – Source (May 10)
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  • AdsNative polled its customer base of 7,500 web and mobile publishers on the state of native advertising in Q1. – Source (April 26)
    • More than 90% of publishers saw native ad revenue increase in Q1.
    • Programmatic trends: 49% planning to grow programmatic guaranteed, 34% pushing their vendors to run first-price auctions, and 17% looking to implement server-side header bidding.

     

  • Branded Content 100 publishers globally will collectively generate $3 billion in branded content digital revenue in 2017. – Source (April 19)
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  • “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%.
    ” – Source (April 10)
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  • More than 80% of affluent millennial internet users in India want branded content, compared with 73% worldwide. – Source (March 30)
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  • Facebook makes up 84.2% of all US Native Display. – Source (March 21)
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  • AsiaPAC made up 43.4% of Yahoo’s monetized impressions – Source (March 1, 2017)
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  • 60.7% of respondents awarded positive ratings to native content in a BurdaForward study. – Source (February 14, 2017). Readiness to buy increases by 50% (breakdown by vertical) – Source (February 10, 2017)
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  • Between October 2016 and December 2016, the use of native video grew 3.75x, according to Bidtellect’s video run-rate on its platform – Source (February 8, 2017)
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  • From July 2016, the number of brands doing both native video and display grew nearly 3x by the end of 2016. The average split for marketers is 80% standard native and 20% native video – Source (February 8, 2017)
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  • Polar unpacks the $50 content advertising ecosystem with their view that content advertising will grow from 6.6% in 2016 to 13.7% of the digital ad market by 2021. The write up is full of ammo and stats on native and the various layers. – Source (January 31, 2017)
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  • Programmatic Native grows almost 90% in 2016, but overall adoption remains low – source (January 25, 2017)
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  • “Premium Branded Content will be a $20 Billion Market by 2021”
    “Top 100 publishers globally make up 50% of the market, they will generate $3 billion in 2017 and $10 billion by 2021.”- source (January 19, 2017)
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  • Yahoo also has monetized 74.5b impressions in the second half. As a point of comparison TripleLift mentioned they had traded 23b impressions/month in 2016. Traded vs monetized is different. – Source (January 18, 2017)
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  • Facebook Audience Network serve ads to 1 billion people each month, 83 % native – source (January 12, 2017)
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  • The number of video ad impressions through Google’s Programmatic Direct has doubled from January to September 2016. – source (December 16, 2016)
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  • The number of programmatic direct details executed by retail advertisers grew 2.8 times Q4 2014 to Q4 2016, Google anticipating a 150-200% jump again this Q4 (2016) – source (December 16, 2016)
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  • BuzzFeed expects branded content and agency services to drive nearly all of its $250 million in revenue forecast for this year (2016). – source (December 11, 2016)
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  • Social networks currently account for 39% of the respondents’ native ad budgets, but that is up 14% over 2015 – source (December 5, 2016)
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  • Nearly half (48%) of newspaper media are carrying some form of native advertising and another 39% are likely to turn to the channel as an advertising option (2016)
    “Native advertising’s share of overall advertising revenue at many of the world’s leading newspapers are expected to grow to 25% by 2018” – source (October 31, 2016)
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  • Native ad spend in the UK grew 29.9% in first 6 months of 2016 to 451M pounds. – source (October 25, 2016)

 

Further reading for predictions of native in 2017

  • Native Ad Institute
    An article by the Native Ad Institute from Jan 18, 2017 with predictions about the future growth in 2017.
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  • SAT Press Releases
    An article by SAT Press Releases on future growth of the native market (From London Jan 30,2017) “Global investments in native advertising will reach $85.5b in 2020, a +213% growth from 2016.”
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  • Red Branch Media
    “In 2016, 56% of total U.S. display ad revenue was spent on native advertising. Business Insider Intelligence predicts this will increase to 74% by 2021”.

 

 

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