Top 5 Local Ad Stats of the Week: Native Advertising

With programmatic ad buying increasingly pulling ad dollars from other media – and now projected to overtake search advertising revenues by 2016 – publishers have been singing the praise of native advertising in order to compete.  For instance, Forbes reported that BrandVoice, the publication’s native ad platform, will account for 20% of total advertising revenues this year, up from 10% last year.

While publishers – for obvious reasons – are heavily promoting native advertising as a whole, there is some powerful research that highlights the validity of this execution for branding and performance metrics. Given the solid ROI seen by advertisers, the native space continues to grow with much help from social media. On the other hand, some native ads, particularly sponsored articles, are driving significantly lower engagement than regular articles.

Here are five stats that paint the picture of the native advertising space, which may have some interesting implications for local:

  • Native advertising spend is expected to reach $2.3B in 2014. (eMarketer)
  • Consumers looked at native ads 53% more frequently than display ads. (IPG Media Labs/Sharethrough)
  • Approximately 80% of those surveyed said marketers use native ads to boost consumer engagement with their brands and “leverage publisher brand equity to achieve brand lift.” (Online Publishers Association)
  • U.S. native social advertising revenues to grow, from $1.6 billion in 2012 to a projected $4.6 billion in 2017. (BIA/Kelsey)
  • On a typical article, two-thirds of people exhibit more than 15 seconds of engagement; on native ad content, engagement plummets to around one-third. (Chartbeat)

Be sure to check back next Friday for our next edition of Top 5 Local Ad Stats of the Week. Have a great weekend!

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