'Native' Expanding At Twice The Rate Of Display, Will Rise To 42% Of Social By 2017

Native advertising formats -- ads that mimic the native non-advertising content on a publisher’s page -- now represent more than a third (35.7%) of all advertising sold by social media outlets in the U.S., according to new estimates released this morning by media marketplace analyst and forecaster BIA/Kelsey. The analysis, which is an update to its U.S. Social Local Media Forecast, projects native formats will rise to 42% of social media spending in 2017.

"Display remains the most prevalent form of social advertising throughout our forecast," states Jed Williams, vice president-consulting at BIA/Kelsey. "At the same time, native advertising formats are quickly emerging as alternatives to display that can generate better engagement and performance. The rapid growth in native is further accelerated by the widespread usage of social networks on mobile devices."

The update estimates that native formats rose 77% from $1.4 billion in 2012 to $2.4 billion this year, and will expand more than 20% per year over the next four years to nearly $5 billion in 2017.

During that same period, conventional display ads in social media will rise at a compound annual growth rate of 12.6% to $6.8 billion in 2017 from $4.3 billion this year.

1 comment about "'Native' Expanding At Twice The Rate Of Display, Will Rise To 42% Of Social By 2017".
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  1. Alison Morris from Triggit, December 18, 2013 at 7:01 p.m.

    This comes as no surprise based on the exceptional performance we've seen from native ads on Facebook this year - specifically News Feed ads on the Facebook Exchange. In comparison to right-hand-side ads which a user can easily learn to ignore, News Feed ads drive up to 5x higher click-through-rates (CTR) at a significantly lower CPC, inherently providing an immediate lift in advertiser ROI. What's important to keep in mind if we want native ads to continue expanding, is that static vs dynamic News Feed ads perform very differently, and not all FBX vendors can serve dynamic ads consistently, and at scale. Without the relevancy of dynamic ads, these native ads won't perform as we'd expect. Check out this study: http://bit.ly/I1H4g5

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