Native Advertising Continues to Grow, Driven by Performance and Efficiency


 

According to a Business Insider report, native display ad revenue is expected to reach $36.3 billion by 2021, representing a 17% compound annual growth rate from 2016. With the underlying goal of taking on the look and feel of the content within which it appears, specifically to create a better consumer experience, it is no wonder native ads would find success in an industry besieged by buzzwords such as “banner-blindness” and “ad-blocking”.

However, as measurement is everything in digital advertising and advertisers demand performance, no ad type can simply get by on good looks alone. So how do native ads perform? Does the improved consumer experience really result in measurable impact?

Chart showing Native Ad growth

To answer these questions, let’s review a recent native campaign and compare the results to that of the average display campaign during the same period. The campaign, promoting a DIY home & garden brand for 12-weeks during Q2 2016, ran native display ads programmatically through the DataXu platform across thousands of sites via partnership with TripleLift.

When the dust settled, it was revealed that the native campaign not only out-performed standard display, but it did so more efficiently as well. In comparison, the native campaign saw a 210% improvement in click-thru rate, as well as a 19% improvement in cost per click. Furthermore, despite no active optimization toward viewability, the native campaign reached 63% in-view as measured by IAS, which equates to a 52% improvement vs industry benchmarks.

Native display is shown to be more effective than standard display.

Upon review, it is no wonder native advertising is expected to grow so consistently in the next several years. With access to billions of global monthly impressions from thousands of publishers, DataXu has recognized the strength of native advertising and will continue to make this exciting and powerful ad type available to our clients.