Native ads — or ads that take on the look and feel of the content surrounding them — are taking over digital advertising. By 2021, native display ad revenue in the US, which includes native in-feed ads on publisher properties and social platforms, will make up 74% of total US display ad revenue, up from a 56% share in 2016, according to new BI Intelligence estimates based off historical data from the Interactive Advertising Bureau (IAB) and PwC, as well as IHS. The rapid uptick in native’s share of display ad revenue can largely be attributed to the dominance of social platforms like Facebook and Twitter — which were early champions of native and rely almost entirely on native formats — as well as the introduction of new programmatic technologies that are making it easier for publishers and advertisers to scale native campaigns. In a new report from BI Intelligence, we break out native ads into three categories: social native, native-style display, and sponsored content (also referred to as premium native). We provide forecasts for how revenues from these formats will grow over the next five years and look at what factors, in particular, are driving up spending on each of these ad units. As a note, because revenues from these three types of native content can overlap, we do not provide an overall native forecast. Finally we lay out some of the challenges that face properties that rely on native ads, namely ad frequency and Scalability issues. Here are some key takeaways from the report: In full, the report: Interested in getting the full report? Here are two ways to access it: Site highlights each day to your inbox. Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.
Native advertising is predicted to make up 74 % of total US display ad revenue by 2021 , compared with 56 % in 2016 , according to a report by consumer electronics . The paper , based on historical data from the Interactive Advertising Bureau , PwC and IHS , said native display advertising , which included native ads in - feed and social native , would increase at a compound annual growth rate of 25 % to nearly $ 36bn , while social platforms would continue to dominate native ad spending , and sponsored content was set to be the fastest - growing native format , despite its higher cost of production .