A new study released by IHS Inc. and Facebook’s Audience Network found that by 2020 in-app native advertising revenue will generate almost two-thirds (63.2 percent) of mobile display advertising revenue and will amount to $53.4 billion.
Mobile advertising has grown faster than any other medium in the last four years and is now a significant proportion of online advertising revenue.
“Initially, we saw mobile advertising struggling to match the success of mobile app usage and consumer spending,” said Eleni Marouli, principle analyst at IHS Technology and co-author of the study. “Now, native advertising is booming and today’s most successful mobile marketers have already made the switch. The future of mobile advertising is native.”
The IHS study, we’re told, is the first to provide market sizing and future projections of the in-app native advertising market across regions.
“When analysing mobile advertising revenue by company, two patterns can be observed,” Marouli said. “Companies which focus on mobile in-app advertising command the majority of the mobile advertising market, and companies which focus on native advertising as a primary revenue stream are the most successful at monetizing through mobile.”
This does not suggest that non-native, mobile web advertising is not growing, but rather that native in-app advertising is outpacing all other mobile advertising formats.
To check out the full report, click here.
