As digital marketing continues to evolve, native advertising is becoming an increasingly popular strategy for businesses of all sizes. Native ads are online advertising that matches the form and function of the platform on which they appear.
It allows them to blend seamlessly with the user experience, resulting in higher engagement rates and better overall performance. Its features make them less disruptive and more engaging for users.
In this blog post, we’ll explore 10 key statistics that highlight the potential of native advertising in 2023. Before analyzing these statistics, we will discuss the key benefits of native advertising to businesses.
Table of Contents
Key Benefits Of Native Advertising
- Higher Engagement Rates
One of the most significant benefits of native advertising is that it typically generates higher engagement rates than traditional banner ads. It is because native ads are designed to blend in with the user experience and provide valuable content that users are more likely to interact with.
When done well, native ads can be almost indistinguishable from the organic content on a website or social media platform, leading to higher engagement and a better overall user experience. Thus, overall benefitting the organization.
- Increased Brand Awareness
Native advertising can also help businesses increase brand awareness by getting their message from a wider audience. Unlike traditional banner ads, which users often ignore or block, native ads are designed to be more informative and engaging.
These ads can help businesses connect with potential customers more effectively. Over time, this increased exposure can help businesses establish themselves as trusted authority in their industry, leading to increased brand recognition and loyalty.
- Better Customer Targeting
Another benefit of native advertising is that it allows businesses to target their ads more effectively to the right audience. Unlike traditional banner ads, which are often displayed to a broad audience, native ads can be tailored to specific demographics and interests.
It not only improves the effectiveness of the ad but also ensures that businesses are not wasting their advertising budget on audiences that are unlikely to convert. This targeted approach can help businesses maximize their advertising dollars.
- Better User Experience
Native advertising is designed to blend seamlessly with the user experience, providing a better overall user experience. Unlike traditional banner ads, native ads are not seen as intrusive or annoying, making them less likely to be ignored or blocked.
By providing a better user experience, businesses can improve their brand reputation and create a more positive relationship with their target audience. This approach allows ads to blend seamlessly, resulting in higher engagement rates and better overall performance.
- Improved Advertising Performance
Finally, native ads have been shown to improve overall advertising performance. Studies have found native ads have higher click-through rates, lower bounce rates, and longer viewing times than traditional banner ads.
This improved performance translates into better return on investment (ROI) for businesses, making native advertising a valuable strategy for businesses of all sizes. Hence, people will use it widely in 2023.
Key Statistics Useful For Native Advertising
#1 Native advertising spending is expected to grow in 2023
According to eMarketer, spending on native advertising in the US is expected to reach $52.75 billion by 2023. It represents a significant increase from the approximate $47 billion spent on native ads in 2022.
#2 Native ads have a higher click-through rate (CTR) than traditional display ads
Research shows that native ads have an average CTR of 0.3%, significantly higher than the 0.05% average CTR of traditional display ads. It is because native ads are designed to match the look and feel of the platform on which they appear, making them more engaging and less disruptive to users.
#3 Native ads are more effective than banner ads
Studies have shown that native ads are 52% more effective than banner ads at driving purchase intent. It is because native ads are designed to fit seamlessly into the user experience, while banner ads are often seen as intrusive and annoying.
#4 Native ads are better at driving brand awareness
Research has found that native ads are 18% more likely to lift brand awareness than traditional banner ads. It is because native ads are less disruptive and more engaging, leading to a better overall user experience.
#5 Native ads are more likely to be shared
Studies have shown that native ads are 20% more likely to be shared than traditional banner ads. It is because native ads are designed to be informative and engaging, making them more shareable and likely to go viral.
#6 Native ads are more effective on mobile devices
Research has found that native ads are 15-30% more effective on mobile devices than desktop computers. It is because mobile users are likely to engage with content designed specifically for their device and screen size.
#7 Native ads are effective across all industries
Research has found that native ads are effective across various industries, including finance, technology, automotive, and healthcare. It is because native ads are designed to match the look and feel of the platform on which they appear, making them more engaging and relevant to users.
#8 Video native ads are particularly effective
Studies have shown native video ads are particularly effective at driving engagement and purchase intent. Research has found that video native ads have an average CTR of 1.55%, which is significantly higher than the CTR of traditional display ads.
#9 Social media is the most popular platform for native advertising
Research has found that social media platforms, such as Facebook, Instagram, and Twitter, are the most popular platforms for native advertising. It is because social media platforms offer a highly engaged audience and a variety of well-suited ad formats for native ads.
#10 Native ads are becoming more sophisticated.
As technology evolves, native advertising is becoming more sophisticated and personalized. It includes using artificial intelligence (AI) and machine learning (ML) to deliver users more relevant and targeted ads.
In conclusion, native advertising is a powerful tool for businesses looking to improve their online marketing performance. From higher engagement and click-through rates to improved brand awareness and shareability, native ads offer a range of benefits that traditional banner ads can’t match.
By matching the look and feel of the platform on which they appear, native ads offer a better user experience. By staying up-to-date with the latest trends and best practices, businesses can unleash the full potential of native advertising.
Note: All the statistics are derived from various data analysis reports.