Native ad spend to reach $22bn this year in the US, comprising 52.9% of display ad investment

native ads

The native advertising market which includes digital display ads, video advertorials, print and online branded content is slated to make up more than half of all digital display ad spending in the US this year, with recent estimates stating it will grow 36.2% this year to reach $22.09bn.

The growth is set to make up 52.9% of all display ad spending in the US, according to a recent report by eMarketer.

“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, author of a new report that highlights the forecasts.

The report suggests that the slice of native ad spend on social is falling, yet still expected to reach $18.59b. Facebook and other social networks are considered be the drivers for much of the US native display ad spending representing 84.2% of all US native display.

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

Notably, native advertising is largely purchased on social platforms, it’s also almost entirely mobile which is slated to reach $19.50b this year, representing 88.3% of all native advertising and that is growing. The eMarketer suggests that native mobile will take up 64.5% of all US mobile display ad spending this year.

Native programmatic makes up 84.0% of all native digital display ad spending, or $18.55b, nearly all US native display ads are purchased programmatically. Because of the heavy influence of social ads, the vast majority of which are transacted via APIs.

“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.

However, excluding social, programmatic accounts for under half of all native non-social display ad spending.

Laurie Fullerton

Laurie Fullerton is a writer based in Boston, MA with a background in business, sports, community, medical and travel writing. She has been a newspaper editor in the Boston-area, a sports writer covering yacht racing and a community reporter. She has been reporting for The Drum since October 2015.

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