Around the Web: Mostly-Mobile Native Ad Spend Expected to Increase 36% in 2017

By the Editors

On March 21, Fast Company published a “1 minute read” about native advertising, also known as “sponsored content” or “paid posts.”

According to writer Jeff Beer (who referenced a study by eMarketer), native digital display advertising is on the rise. In 2017, spending on native advertising is expected to grow 36.2% to reach a total of $22.09 billion. The majority of that, about 88.3%, is projected to be mobile.

“As marketing opportunities continue to splinter across a myriad of platforms and channels, at the same time as traditional interruptive ad intervals are ever avoided like a consumerist plague, brands need to find a way to get their messages across in ways we might actually want to see it.” — Jeff Beer, staff editor, Fast Company

Marketers are willing to allocate the resources because the ads seem to be catching viewers’ attention. Beer references The New York Times. In 2014, the company saw their online readers spent about as much time reading sponsored content as they did news articles. In that year alone, the publisher sold $18 million in advertiser-sponsored content.

Emarketer predicts that native advertising will comprise more than half of all digital display ad spending this year. Music marketing in particular is expected to increase (as an example, Beer cites a partnership between Spotify and The North Face). As non-social publishers increasingly adopt this approach, expect to see the social network—i.e., Facebook—share of all native ads drop by about 2%.

According to eMarketer principal analyst Lauren Fisher: “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.”

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