Digital advertisers and marketers have struggled for years to clearly define native advertising. Analysts differ greatly in their opinions, with some defining them simply as “ads in a format that is native to the platform on which they are run,” while others counter that native ads are “a specific mode of monetization that aims to augment user experience through relevant content delivered in-stream”. Touted as the “best” ad format available, publishers on all digital channels struggle to differentiate their native ads from others, resulting in the format’s lack of scale and adoption.
All of the confusion regarding native advertising has left digital publishers, advertisers, marketers, and others wondering how native advertising will fare in the future. How will mobile native ads function? And how can brands successfully utilize native ads?
In order to answer those questions, Business Insider conducted a report on native ads’ impact on the mobile advertising industry. Finding that native ads aim to be premium, they predict that native advertisements will raise mobile advertising prices across the board, but that they won’t scale well due to the need for individual publishers to create their own advertising solutions. Furthermore, BI finds that brands aren’t only focused on native ads, but would like publishers to offer better tracking and audience data, in order to better measure their ROI.
Through both desktop and mobile channels, the market for native ads is growing. eMarketer projects that the market for social native advertising will be valued at $4.57 billion in 2017, vs. $6.4M in display ads. Companies that are able to utilize native advertisements well, such as Buzzfeed, which charges approximately $92.3K per native advertising campaign, have grown exponentially.
Native advertising advocates continue to promote native ads’ higher CPMs and greater effectiveness at delivering against core marketing objectives; however, detractors of native advertising continuously bring up its lack of scale as a limiting factor. Each publisher must develop their own advertising infrastructure, resulting in huge fixed costs before any revenue can be realized. As technology and more standardization occur in mobile advertising, scale will become less of a barrier.
Aarki works to help mobile app publishers to develop native advertising solutions, in the form of branded rich media advertising experiences. Our own research has shown that these mobile native advertisements result in higher brand recall, brand resonance, message recall, and time spent in the ad. As leaders in mobile rich media, we’re proud to partner with premium publishers to enable them to scale and minimize the upfront production costs with our rich media platform, Aarki Studio.