The global native advertising market is set to experience an extraordinary surge in the coming years, with projections indicating that the market will exceed USD 650 billion by 2032. With a staggering anticipated compound annual growth rate (CAGR) of 375% between 2022 and 2032, the native advertising sector is poised for unprecedented expansion.
The global sales of native advertising are expected to reach USD 100 billion by the end of 2022, marking a significant leap from the US$ 94 billion valuation in 2021. The sector’s rapid growth is driven by a range of factors, notably the increasing penetration of smartphones and internet access worldwide, which continues to create vast opportunities for advertisers and marketers.
Native advertising, often referred to as sponsored content, is a form of digital advertising that integrates seamlessly with the platform on which it appears. Unlike traditional ads, native ads match the format and function of the host platform, making them less intrusive and more engaging for users. This strategy allows brands to deliver highly effective, targeted content in the form of videos, articles, images, and more, tailored to the specific context of the platform.
The demand for native advertising has been growing due to its ability to drive higher engagement, improved campaign performance, and a more organic connection with audiences. As more businesses, particularly small and medium enterprises (SMEs), recognize the power of native advertising for brand promotion, the market is witnessing a significant increase in demand. The increasing reliance on mobile and digital channels for brand promotion has only amplified this trend.
Key Market Drivers
- Rising Smartphone and Internet Penetration: The surge in mobile device usage and internet access globally is one of the primary factors contributing to the rapid growth of native advertising.
- Engaging and Customizable Content: Native advertising provides an immersive advertising experience by blending content seamlessly with organic media, resulting in higher engagement and better performance metrics.
- Shift Towards Digital Marketing: As companies increasingly move away from traditional advertising models towards digital solutions, native advertising offers a promising, highly effective alternative.
- Effective Use of Consumer Data: Leveraging consumer data allows for highly targeted advertising, further enhancing the impact and efficiency of native ads.
Regional Insights
- North America: The North American market is expected to dominate the global native advertising industry, driven by a high level of internet penetration, the growing popularity of social media platforms, and the increasing demand for mobile advertising solutions. The U.S. and Canada are key players in this market, with new platforms such as Clubhouse offering additional opportunities for native advertising.
- Western Europe: In Western Europe, the widespread use of smartphones, which are increasingly replacing traditional desktop computers for internet access, is expected to bolster the demand for native advertising. As mobile usage continues to rise, native ads are becoming an integral part of the digital ecosystem.
Key Companies Profiled
Sharethrough, Inc.; AdPushup Inc.; Taboola, In; IAB Playbook; Instinctive Inc; Nativo, Inc.; Triple Lift, Inc.; Outbrain Inc.; StackAdapt Inc.; Revcontent, LLC
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Key Segments Profiled in the Native Advertising Market Survey
By Type:
- In Feed Ad Units
- Search Ads
- Promoted Listings
- Recommendation Units
- Promoted Listings
- In-Ad, Custom Content
By Platform:
- Closed Platform
- Open Platform
- Hybrid Platform
By Region:
- North America
- Latin America
- Western Europe
- Eastern Europe
- APEJ
- Japan
- Middle East and Africa
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