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Are Digital Advertisements Becoming More Popular for Audience Development?

Native advertising revenues grow significantly; Digital advertisements popular on mobile devices; Facebook’s Audience Network moves to mobile

Today we’re seeing increases in a variety of digital advertisements that some publishers have been using as part of their audience development strategy.

We begin at Media Post, which is reporting on native ad data from AdsNative. “More than half of publishers don’t believe that Google and Facebook “own” the digital advertising market. That’s one of the findings of a recent survey conducted by AdsNative, which polled its customer base of 7,500 Web and mobile publishers on the state of native advertising in Q1. The survey found that 53.9% of publishers don’t believe ad budgets are going to just a handful of players.”

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“Also, 92.3% of those polled saw native ad revenue increase in the last year, 66.7% use data management platforms (DMPs) to allow advertisers to segment by behavioral targeting, 69.2% are getting the most revenue from direct sales, 84.6% do outstream video, and 68.9% are monitoring ad blockers but haven’t been greatly affected by them yet.”

The article continues with a look at future expectations for native ads. “The survey also asked about programmatic trends, and found 49% planning to grow programmatic guaranteed, 34% pushing their vendors to run first-price auctions, and 17% looking to implement server-side header bidding.”

We’re seeing the growth of native digital advertisements as we’re also seeing an increase in search ad revenue. Search Engine Journal reports, “According to a report from iab, total revenue from search ads has hit a new high which can be attributed in large part to the success of mobile ads. As a result of an unprecedented level of spending on mobile search ads, the search ad format accounted for $35.0 billion in revenue in 2016 — up from $29.5 billion in 2015.”

“Mobile ad formats are doing so well this year they are selling a combined 51% of digital ads compared to desktop digital ads. This has led to an unsurpassed $72.5 billion in total digital ad spending.”

The article continues with a breakdown between mobile and desktop ads. Here’s a look at those stats:

  • “Desktop Search accounted for $17.8 billion in 2016 revenues, down 13% from the $20.5 billion 2015.”
  • “Mobile revenues increased 77% from $20.7 billion in 2015 to $36.6 billion in 2016.”

Finally, we take a look at digital advertising through Facebook, and the changes being made in hopes of competing with Google. Forbes reports, “Facebook recently announced a plan to bring the Facebook Audience Network to mobile web pages to challenge Google. The deal drew immediate praise from industry watchers, with some calling it a game-changer.”

“By offering rivals Amazon.com, AppNexus, Index Exchange, Media.net, Sonobi, and Sortable access to FAN, Facebook brings more advertiser demand to companies competing head-to-head with Google’s fearsome DoubleClick empire.”

“And as competition drives the value of content higher, digital advertising rates must follow. That’s a win for digital advertising companies. It just so happens the best of breed are Google and Facebook, which are very big and on track to get much bigger.”

We’re clearly seeing a lot of momentum going into digital advertising from various directions. As the growth of media consumption continues to grow, we’re sure to see more attention going towards digital advertisements.

Do you need help building out a strong digital advertising or audience development strategy? If so, please schedule a time to chat with us. Mequoda has comprehensive experience building effective audience development strategies that are proven to drive more qualified website traffic.

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