MediaRadar’s most recent consumer trend report reveals significant growth in native advertising. Since January 2015, the demand for native has nearly tripled.The report shows 11,402 total native advertisers last year alone. Resulting in a 74% increase in Q1 YOY (16-17).
However, despite popularity, renewal rates for Native Advertising run low (33% across all media). Like most things, there are exceptions, we see sites with more established native programs have a higher renewal rate of 49%. This could be why Media & Entertainment, Professional Service and Financial are among the top product categories focusing their efforts around native in 2016.
Consumer trends also play a role in the rise of native. With a constant evolving digital audience, it is important to understand how they are reacting to ads across all platforms.
Here are 3 reasons why Native ads have shown continued success with consumers:
- They provide a less distracting viewing experience.
- They connect to this seamless form of advertising for a longer period of time, increasing potential for CTR
- They appear more transparent and trustworthy, allowing the consumer to clearly identify the advertiser
Audience impact can have a tremendous influence in the world of digital advertising. If it continues to be favorable to consumers, it is safe to assume that native will continue to grow throughout the rest of 2017.