MediaRadar, an advertising sales intelligence platform, released the results of a study examining native advertising trends in 2016. The study, “Leaders and Lessons in Native Advertising,” examined thousands of native ads from 12,965 brands.
In December 2015, the Federal Trade Commission (FTC) released its first-ever native advertising guidelines. At that time, only 29% of publisher sites examined were compliant. That number has increased by 119% year-over-year, however, with 63% of digital publishers having modified their native advertising to adhere to the FTC guidelines. Still, it still leaves 37% of digital publishers that are not native compliant.
Adoption and demand for native ad content was extremely high, with an average of 610 new advertisers using native content solutions each month.
Renewal rates and campaign duration for native remain low overall. Based on 2016 data, native renewal rates are at only 33% across all media sites. An even smaller portion of those (20%) renew less than 20% of the time. The average native campaign duration is only two months.
However, sites with more established native programs have a 49% renewal rate. This includes sites with native programs where more than 50 brands are placing native buys.
The top-five categories in native advertising from January to December 2016 include: 1. media and entertainment (3,198 brands using native campaigns); 2. professional services (2,017 brands); 3. finance and real estate (1,246 brands); 4. technology (1,231 brands); and 5. retail (1,153 brands).