Native advertising growth continues, despite the fact that many marketing agencies still say that they would struggle to be able to explain exactly what it is to their clients. In fact, in general, there was a lot of uncertainty regarding the display advertising method, with the majority saying they were unsure whether any regulation existed for the industry.
Sponsored posts, sponsored content, and even paid ads on the likes of Google search pages can be considered forms of native advertising, and although the content has stirred up something of a backlash, with some marketers and readers decrying it as dishonest and false, it has proven to be effective. It has also proven to be a long term marketing technique, despite the fact that numerous surveys and questionnaires in the past have shown that many people do not fully understand what it is.
A survey commissioned by Adyoulike shows that 83% of 20 media agencies in the UK already offer native advertising services to their clients. The remaining 17% said that they will be offering it soon. Furthermore, sponsored advertising now accounts for just over 9% of display advertising budgets and experts predict that this figure will rise to 15% by next year.
However, some confusion remains over what might still be considered an emerging strategy. Although 77% said that they were fully confident that they could adequately explain the concept to clients, 23% said that they were not very confident or only slightly confident. The survey questioned 500 senior executives and members of marketing personnel; the group that should have the greatest idea of what native advertising really is. If the same question were asked of marketers and marketing teams from other industries, the figures would likely be much lower.
Even those that are not aware of the term native advertising may well be using the platform already and major organisations clearly see the benefit of incorporating this method of advertising into their own strategies and practices.
It has been announced that Amazon is buying Twitch, a service that enables gamers to stream their content live for the world to see, for just shy of $1bn. Twitch CEO Emmett Shear has said that “our entire website, in some ways, is a native advertising unit for videogames.” He went on to say that while the company will do a lot more to assist partners in convincing users to buy links, they will not convert to a platform that sells games directly.