Native Ad’s Appeal

As discussed in an earlier blog post, in-app native advertising growth is skyrocketing, and projected to take nearly two-thirds of the mobile display ad revenue by 2020.  Let’s dive in and take a little closer look at why this method of advertising is catching so many people’s attention.

Engagement is a key indicator of a successful ad, and advertisers often look for ways to increase engagement with their consumers.  Herein lies a huge advantage for native advertisements; they engage with consumers at a rate 60% compared with just 20% for standard banner ads.  This means lower retention rates, lower CTR’S and lower eCPM’s for banner ads compared to native ads.  Further, native ads are less likely to fall victim to “banner blindness” in which consumers simply disregard the advertisement.

Challenges remain, though.  Scale is somewhat limited still, and there is no universal pricing or measurement standard for native ads.  We expect that as the industry flourishes, improved and more highly sophisticated formats will enhance their usage.  To see the full article, click here.

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