With the way people consume content increasingly turning towards mobile devices, the advertising world as we know it is changing. According to eMarketers “UK Native Advertising: Growing Pains as Fledgling Format Seeks Maturity” report, display ad performance has significantly worsened over the past years and UK marketers are spending more heavily on digital ads. Despite firmer guidelines on native ad trading, mobile display ad spending is predicted to rise in line with growing mobile devices penetration worldwide. According to the IAB’s “UK Digital Adspend Study” April 2015, UK mobile display ad spending accounted for £769.3m with content and native being its predominant format (46%), followed by standard display (32%).
UK mobile display ad spending
According to GSMA “The Mobile Economy: 2015” report, in 2014 there were over 3.6bn mobile users with over 6.8bn mobile devices sold. In line with these findings, eMarketer further predicts that consumers will spend more time using the web and apps on their mobile phones this year, compared to computers. Just as users turn towards their mobile devices, so are advertisers. In 2014, 70% of all digital and native ad spending went towards mobile initiatives. Native ad technology platform Polar delivered benchmarks that suggest mobile is driving native advertising more significantly in the UK with 27% of native ads versus 20% worldwide. Native ads also have a higher click-through rate (64%), according to Polar.
Mark Rosner, Chief revenue officer, of mobile marketing company AppLovin, says:
“Native ads are a massive market on mobile that can’t be ignored. 63% of companies are increasing their native ad budgets this year, and research firm Statista thinks the market could be worth $8.8bn by 2018. With these tips, you can start adding another stream of revenue to your app and begin tapping into this highly lucrative opportunity.”
Indeed, Yahoo found that more consumers visually engage with native ads on mobile devices (85%) versus 64% of standard display ads. But whilst the mobile consumer prefers shorter to longer content, advertisers need to think carefully about the content they produce. Rosner adds:
“Throughout every step of the native ad development process, you need to think about the user experience first. This is key to creating the native ad experience; otherwise, you’ve just given them another big banner ad to look at. Everything – from the frame to the design to the frequency to the timing – should keep the user in mind.”
Continued engaging and immersive content will be key drivers to win new customers as competition in the mobile native ad space grows.