Mar 29, 2017

Online ad spending going native

Most of the money spent on digital display advertising will soon go to native ads — where the advertising is designed to look like editorial content — according to a new eMarketer forecast. That kind of ad spending has grown to $22 billion, most of it spent on social-media platforms.

Why this matters: A recent survey found that trust in ads is rising while trust in news sinks. Ads that are designed to look like news could confuse readers.

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Data: eMarketer; Chart: Andrew Witherspoon / Axios

Why it's happening: Publishers are creating more native ads because other types of digital display advertising aren't working. Advertisers are reacting to the rise of ad blockers and increased frustration with banner ads. And Google and Facebook are eating the digital display market, leaving publishers no choice but to try to monetize through engagement with native ads instead of trying to reach the most viewers with broad display ads.

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