Native ads to drive 63 percent of mobile display ad spend by 2020



By 2020, media buyers will spend $84.5 billion on mobile advertising, with mobile accounting for 75.9 percent of all digital ad spend globally, as revealed in a new study by Facebook and IHS Inc.

Third-party in-app native advertising will be the fastest-growing ad format in digital advertising and is anticipated to grow at a 70.7-percent between 2015 and 2020 while Native ads will drive 63.2 percent of all mobile display advertising at $53 billion by 2020.

This rise is reportedly due to higher engagement rates in native ads driving up 3 times more retention rates compared to traditional banners. According to Facebook Audience Network, CPMs are seven times higher for native units compared to banners and third-party in-app advertising will continue to grow as more publishers shift to programmatic selling, native ad formats and mobile commerce.

Since the first quarter of 2015, the use of native ad units by apps in the network has increased by a multiple of 10 and Facebook recently announced that 83 percent of the ads running on Facebook Audience Network are native.

Facebook’s success in mobile advertising is due to its continued adoption of native ads by advertisers. To date, Facebook dominates the mobile display market, with 44 percent market share globally.