This study, conducted by IHS and commissioned by Facebook Audience Network, provides the first market sizing and future projections of the in-app native advertising market across regions. While first party in-app native, like those seen on Facebook, will continue to be the largest revenue driver, third party in-app native will continue to grow, at an annual average rate of 70.7% and will account for 10.6% of all mobile display advertising at $8.9bn by 2020. However, the paths to adoption of native advertising vary for different types of mobile publishers. A flexible approach which puts the user experience at the heart of the advertising strategy is crucial for the success of native.
- By 2020, 75.9% of all digital advertising revenue will be mobile at $83.8bn
- By 2020, 63.2% of mobile display advertising will be native, which will make up $53.4bn in advertising revenue
- Third party in-app native advertising is growing quickly. It is forecast to increase at a 70.7% compound annual growth rate between 2015 and 2020, amount to $8.9bn and account for 10.6% of mobile display advertising.
- North America is the leading region in third party in-app native advertising both in absolute and relative terms; APAC will record the largest increase in the next five years at a 177.0% compound annual growth rate between 2015 and 2020.
- Utilities, news and social apps are the champions of in-app native advertising, while games are more hesitant to adopt new ad formats.
- The key challenges to adopting native advertising by app developers and publishers are: 1) lack of awareness of native ad formats 2) restricted infrastructure and technology 3) limited scale 4) low sophistication of native ad formats 5) no universal pricing and measurement
List of Tables and Charts:
- 2015: Smartphones per 100 population
- World: Cumulative mobile app downloads (bn)
- Global mobile share of display advertising (%)
- Global mobile display advertising share by company in 2015
- World: native share of total mobile display advertising (%)
- 3rd party in-app native share of mobile display
- World: advertising CAGR 2015-2020
- North America: advertising revenues ($m)
- Regional share of global 3rd party in-app native advertising revenue (%)
- North America: 3rd party in-app native ad revenue & share of mobile display
- Europe: advertising revenues ($m)
- Europe: 3rd party in-app native ad revenue & share of mobile display
- Asia-Pacific: advertising revenues ($m)
- 3rd party in-app native advertising CAGR 2015-2020 (%)
- APAC: 3rd party in-app native ad revenue & share of mobile display
- Typology of mobile apps and publishers
- CPM uplift by publisher type
Number of Pages: 21
Number of Tables and Charts: 17
Director, Media and Advertising
Jack Kent leads IHS Markit’s Media and Advertising research, heading up a team of analysts covering Games, Cinema, TV Channels & Programming, Home Entertainment and Advertising research.