Nearly two-thirds (63.2%) of all mobile display ads will be native by 2020, summoning $53 billion in total advertising spend, according to a new research study conducted by global business analyst IHS Technology and commissioned by Facebook's Audience Network.
As part of its research methodology, IHS conducted a series of in-depth interviews with leading publishers, app and game developers, trade associations, agencies, music services, ad networks and tech vendors in 25 countries across Europe, Asia-Pacific and the Americas.
"For publishers, this can mean longer time spent on your property and increased revenue. For advertisers, native can mean more value for your business. On Audience Network alone, where 83% of the content is native, we see CPMs seven times higher for native ads compared to banners," Facebook in a statement said.
Here are some highlights from the research:
- By 2020, 75.9% of all digital ad spend will be mobile.
- Native advertising will generate 63.6% of all global mobile display advertising and amount to $53 bilion by 2020.
- In APAC, native advertising will amount to $14.1 billion by 2020 ($3.6bn third party native).
- APAC will record the largest increase in native advertising spend in next five years at a 177% compound annual growth rate between 2015-2020.
- Third party in-app native ads, like those served on outside publishers through Audience Network, will continue to grow at an annual average rate of 70.7%, and account for 10.6% ($8.9bn) of all mobile display advertising at by 2020.