Three forces influencing the convergence of programmatic and native advertising

As our industry gathered for AdExchanger’s Industry Preview 2017 in New York last week, the latest developments in programmatic and native advertising remained top of mind for everyone.

The opportunity for how to increasingly use the two together in what is known as Programmatic Native advertising was especially of interest. The concept takes advantage of the best of both worlds, making it easier for marketers to embrace native advertising through existing Ad Exchange and DSP relationships.

Three central forces have reshaped and invigorated the landscape and brought us to this point:

Yahoo: The growth of mobile inventory

eMarketer reports that 267 million people in the US, over 90% of the online population, now own a mobile phone. Advertisers follow the eyeballs, and 70% of all U.S. ad inventory is now mobile, which drove advertisers to spend 51% of their budgets on mobile last year. This number is projected to increase to 75% within three years.

As mobile grows, so do native ads. The format seamlessly integrates into a user’s mobile feed, providing a less invasive experience that helps users discover new brands naturally. Beyond a superior user experience, our publisher and advertiser partners also report how well native performs for them on mobile.

Reinforcing this sentiment, we found that native ad experiences receive three times more attention and tend to drive returns in excess of display banner ads.

Yahoo: Programmatic advertising is how you scale

Programmatic advertising has hit a tipping point with more than half of all spend last year executed on programmatic ad platforms.

With native adoption on the rise, two of the questions we often hear is how to apply familiar programmatic ad technologies to native and how to measure and optimize performance across channels at the most granular level possible to scale the business.

Advertisers and publishers should look to partner with effective programmatic DSP and ad exchange partners who offer full support for native and integrates omnichannel measurement to allow advertisers to see the complete picture of all their programmatic advertising efforts.

Yahoo: The effects of improved protocols

The industry greatly aided overall adoption of programmatic native advertising in 2015 when the IAB published the OpenRTB 2.3 protocol, which now sets a standard for how native ads can be bought and sold through a real-time auction. This has enabled native advertising to enter the world of programmatic ad efficiency.

Many of the industry’s DSPs and ad exchanges already support the protocol, and at Yahoo we’re seeing strong interest and adoption growth from both publishers and advertisers to take advantage of this.

Tremendous value and real momentum

It was great to see so many industry leaders come together last week at AdExchanger’s Industry Preview. Many of the on-stage presentations and hallway and lunch conversations revolved either directly or indirectly around Programmatic Native advertising. Collectively, it’s clear we’re identifying this as something that has tremendous value and real momentum.

At Yahoo, we have long advocated for a cleaner and less invasive ad experience. We’re encouraged by the direction native advertising is taking us as an industry and are laser-focused on activating as much native supply as possible for all of our partners.

To get started, or further refine efforts already under way, publishers and advertisers should connect with their DSP and ad exchange partners to discuss how they can maximize this opportunity.