According to a new eMarketer report, native digital display ad expenditure will be responsible for over half of all digital display ad spend in the US in 2017.
Indeed, US native digital display ad spending is estimated to increase by 36.2% to $22.09 billion. That means it will make up almost 53% of all display ad expenditure in the US.
Lauren Fisher, Analyst, eMarketer explains that rise in native digital display is largely due to a push by publishers trying to create premium, mobile inventory whilst advertisers are calling for ads that are more engaging and less intrusive.
A large number of US native display ad spend is already attributed to social, driven by Facebook. Native social network display ad spend is estimated to reach $18.59 billion, representing 84.2% of all US native display in 2017.
However, social’s share of native is dropping slightly. Fisher adds:
“We’re seeing a huge ramp up in non-social publishers adopting in-feed ads and video. Coupled with continued advances on the programmatic native front, this will accelerate non-social native display spending.”
Much of native advertising is mobile. Indeed, native mobile display ad spend is projected to increase to $19.50 billion this year, which represents 88.3% of all native advertising. In 2017, native mobile will make up 64.5% of all US mobile display ad spending.
Due to the success of social ads, a very large majority of US native ads are purchased programmatically. This year, native programmatic will represent 84% of native digital display ad expenditure, eMarketer says.
“It’s been a slow start to enabling programmatic buying for non-social native display ads, but with the majority of buying platforms quickly moving to accommodate native ads, we see that changing in the next several months,” Fisher explains.