Amid the buzz and hype surrounding the native advertising industry, a helpful piece was released last week by BI Intelligence and the IAB providing more specific data on the spends and growth trends for this fast growing space.
In summary, the three core advertising spend areas; social native, display-style native, and sponsored content, are all set for significant growth over the next 5 years with an anticipated 35% compound annual growth rate (CAGR), going from just under $5b in 2013 to over $21B in 2018.
Confidence in the market and an aggressive forecast for growth should come as no surprise as many see native advertising as a long-awaited second coming for the traditional display space, while anyone invested in social media native ads.. or social media advertising in general, should go celebrate right now.
What’s interesting for Social native is that, similar to how paid Google keyword ads boost organic efforts, paid social native has a significant effect on native social efforts. Great news for social marketers.
It was also interesting to see that the NY Times is attributing significant growth revenues to their own published advertorials, known as “sponsored stories”.
As always, the warning signs for native ads are clear – make sure there’s clear delineation of ads VS editorial content, that the advertiser is well established, and as we like to say, “keep it real” with useful and engaging content.
Link to Business Insider here though you will need to signup to download the report… they include a nice summary.