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BizReport : Trends & Ideas archives : February 03, 2015

Two-thirds of marketers plan to increase spend on native advertising in 2015

Measurement and transparency may be challenges facing marketers who engage in native advertising but that is not stopping nearly two-thirds of marketers who plan to spend more on the format this year, according to the Association of National Advertisers.

by Helen Leggatt

Native advertising, an advertising method in which the advertiser attempts to gain attention by providing messaging in the context of the user's experience, is increasing in popularity despite associated challenges. According to the Association of National Advertiser's (ANA) latest report, "Advertising is Going Native", for which 127 client-side marketers were polled, more than half said their company employed native advertising in the last 12 months and nearly two-thirds (63%) expect to increase budgets for the ad method in 2015.

"Native advertising is proving to be a win for marketers, consumers, and publishers. Marketers win because their messages have a better likelihood of being seen and read versus traditional advertising. Consumers win because marketing messages have more contextual relevance than traditional advertising. And publishers win with the business development potential," says Bob Liodice, President and CEO of the ANA.

Marketers agree, however, that clear disclosure is vital so that consumers are able to tell the difference between native advertising and editorial and the onus lies with both the marketer and publisher to enforce this. Just 13% of marketers feel that such disclosure is unnecessary. According to the ANA's survey, "disclosure/transparency is the single biggest issue about native advertising that keeps respondents up at night".

However, for 68% of respondents, native advertising continues to account for a very small percentage of overall ad budgets - just 5%. Challenges surrounding measurement could well "impede further growth of native advertising" says the ANA, unless the industry is able to employ deeper insight into the impact of the ad method.

Image via Shutterstock


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