Native advertising accounts for an average 20% of total current publisher revenues, with publishers expecting it to represent as much as 30% within a year, according to the State of Native Advertising 2014 report from Hexagram and Spada. Blog posts (65%), articles (63%) and Facebook (56%) are the most popular forms of native advertising, while the most popular way of signposting content is via use of the tags ‘sponsored’ (64%), followed by ‘brought to you by’ (34%) or ‘featured’ (29%).
A large majority of publishers (84%), agencies (81%) and brands (78%) believe that native advertising adds value for customers. The survey also found that sponsored content is viewed positively by 56% of brands and 50% of agencies.
A continuing need for transparency and a duty of care to consumers were cited as crucial for the reputation of native advertising – 79% of publishers already clearly label native advertising campaigns. As a result, the majority of publishers (82%) and brands (71%) surveyed had not received complaints as a result of native advertising campaigns.
“It is imperative that brands and agencies also recognise that it will not serve their interests to invest in advertising that deceives consumers under the guise of impartial editorial,” says Chris Ingham Brooke, CEO of Hexagram. “Brands, agencies, publishers, regulators and the ad tech community must work together, and in consultation with consumers, to establish best practice around when and how it is appropriate to label sponsored content and other forms of native advertising.”