Native Ad Buying is Up 74% Since Last Year as Both Programmatic and Print See Declines


According to new numbers released by, MediaRadar brands running programmatic ad campaigns has declined by 12% for Q1 2017. That amounts to 5,000 fewer advertisers pr ads purchasing ads via programmatic than the first quarter of 2016, with numbers falling 12 percent, year over year.

The drop is attributed to more advertisers instead choosing direct ad buying due to concerns involving brand safety and fraud that have dogged the reputation of programmatic.

The shift shows advertisers wanting to place more emphasis on the importance of their ad partnerships and an insistence on having greater control over where their ads show appear.


 

Takeaways from the report:

Native advertising saw the largest growth

With a jump of 74% YoY in Q1 2017, native advertising saw the largest increase of any ad format measured by MediaRadar. Even though native ads are more costly, they perform with higher click-through rates.

“Consumer advertising is shifting as audience consumption patterns evolve,” Krizelman said. “Advertisers will keep spending more on native because it outperforms traditional ad units. Audiences look at native ads more frequently than non-native, and buyers are investing accordingly.”

The report additionally included numbers on where native ads performed best.


 

Big brands are looking more for quality over quantity

JPMorgan is the example of choice when earlier this year it started curating where its ads appear rather than leaving it to chance with programmatic. That meant the brand reduced the number of sites on which its ads appear from 400,000 to 5,000. According to JPMorgan there was limited impact on ad visibility and cost following the move.

Print continues decline

Print ad pages declined by 8 percent, year on year while estimated print spending has declined by 6 percent from the first quarter of 2016 to the first quarter of this year.

“There has been a noticeable drop in ad pages and spend from the start of 2016 to now,” said Todd Krizelman, CEO and co-founder of MediaRadar. “That being said, there are still a considerable amount of pages being bought. Niche and enthusiast titles are on the rise, with some regional titles flourishing.”

Video to increase

While programmatic native advertising continues to expand, video offers the biggest opportunity for growth as consumers and brands continue to the shift to mobile, desktop devices still play an important role in native video advertising.

 

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