A fresh report from Nativo is revealing a 600 percent growth rate in native ad spend. One caveat, however: the growth and spend figures fluctuate widely by vertical.
The study’s three-year perspective provides digital marketers with detailed data about specific verticals and their native investments. To produce insightful benchmark data, Nativo analyzed three years (Q12014 to Q42016) of native ad spend on their signature True Native (in feed, click-in native ad units) and Native Video formats.
“Nativo’s Business Intelligence team analyzed ad spend across their entire marketplace, identifying key trends from major verticals such as Automotive, Travel, CPG, Health & Fitness, Finance, and Insurance, Tech (both B2B and B2C), Entertainment, and Food and Beverage,” reads the report summary shared.
Overall, native spend is on the rise and increased 600 percent during the study period.
Key findings about specific verticals include:
- Year over year, Food & Drink grew their share of native ad spend the most by 9 percent.
- Food & Drink was followed by Travel and by Business, which both grew their share by 4 percent.
- Automotive (OEM), Tech B2B, Entertainment, Tech B2C and Finance and Insurance, all early adopters of native advertising in 2014, saw their aggregate shares of budget decline by 20 percent, from 57 percent in 2014 to 37 percent in 2016.
- Slower vertical adopters of native — Business, CPG, Travel and Food & Beverage — grew by 24 percent to reach 45 percent aggregate share of budget in 2016.
The report notes that the top performing verticals in terms of engagement include CPG, Entertainment, Travel, Food & Drink, and Tech B2C.
“Native spend continues to grow rapidly overall, but beneath that linear trajectory we’ve witnessed a lot of fluctuations vertical to vertical,” said Casey Wuestefeld, the Vice President for Campaign Operations at Nativo. “The data indicates that while advertisers are committed to increasing their investment in native, they are still experimenting where content strategies fit within their overall marketing mix.”