While Google and the FTC aren’t fans of native advertising, brands and content publishers are, and for many consumers and online audiences, as long as they know when content has been sponsored by an advertiser, they’re accepting of it. Today, more and more content publishers view native advertising as an important revenue stream that they depend on to pay the bills and keep their sites running.
The State of Native Advertising 2014 report, published by native advertising exchange provider Hexagram in partnership with Spada, a research and public relations firm, reveals statistics about the companies that are investing in native advertising and how it’s working for them. Based on the findings in this study, publishers are happy with native advertising and expect it to continue to grow.
Key publisher-related findings about native advertising from respondents in this study include:
- 85% of content publishers believe that native advertising represents a new and viable revenue stream.
- 84% of content publishers believe that native advertising adds values to their audiences.
- 62% of content publishers are already offering native advertising.
- 10% of content publishers expect native advertising revenues to increase by 10% within one year.
Comparing these statistics with the study’s findings about advertisers, Hexagram found that there is a significant gap between publishers and the ad agencies that are responsible for purchasing a variety of ad space for their brand clients. For example, the study revealed that 41% of brands are already using native advertising with 66% of them creating the sponsored content themselves rather than working with an agency to do so. Furthermore, 62% of content publishers are already publishing sponsored content but only 32% of agencies are offering native advertising to their clients.
Interestingly, only 11% of brand and agency respondents to the Hexagram survey had negative views of publishers that publish sponsored content, yet only 14% of brand marketers believe that native advertising is less effective than traditional forms of advertising. The top two reasons that brand marketers invest in native advertising rather than traditional advertising are because they believe native advertising delivers a more relevant message (67%) and increases consumer engagement (63%).
You can see all of these statistics and more in the infographic from Hexagram below and follow the link above to download the full The State of Native Advertising 2014 report.
Are you using native advertising to generate revenues on your site? Leave a comment and share your thoughts on native advertising in 2014 and beyond.
Image: Cavell L. Blood