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Native advertising spend to double in Asia Pacific by 2018

Source: Adyoulike

Source: Adyoulike

Spend on native advertising in Asia Pacific is expected to almost double over the next three years.

In a report titled ‘Native advertising is eating the world’ by Adyoulike, a native ad network based in Europe, spend on paid ad content that resembles editorial will grow from $8.6 billion this year to $16.9 billion by 2018 based on data from PricewaterhouseCoopers, eMarketer and IAB US.

In the APAC markets measured in the study, China’s native ad market is expected to grow from $2.6 billion to 5.12 billion, Japan’s from $2.22 billion to $4.36 billion by 2018 and Australia’s from $0.78 billion to $1.53 billion.

Native advertising is also expected to grow rapidly in Indonesia, up from $0.55 billion this year to $1.53 billion over the next three years.

In Korea, the native ad market will swell from $0.57 billion to $1.12 billion, and from $0.23 billion to $0.45 billion in India by 2018.

The rate of growth for APAC is similar to North America, where native ad spend is predicted to rise from $11.49 billion in 2015 to $22.56 billion by 2018.

“The industry has previously been largely working from old and out-of-date numbers, but now the true picture of how native advertising is ‘eating the world’ is coming into view,” said Julien Verdier, CEO at Adyoulike.

“In particular, 2015 was a big year for native as it truly became part of the digital mainstream: spend is now tracked by PwC, it often has separate budgets with money moving into native from display, and the arrival of the OpenRTB 2.3 standard has allowed advertisers to distribute genuinely creative native content programmatically for the first time.

Native advertising is taking off because “it answers a lot of the issues with display ads,” Verdier said – “creative, high-quality content is delivered in-feed in a way that works perfectly on mobiles and smaller screens.”

“And it’s going to keep growing massively over the next few years as brands and publishers understand what native can offer – and how it provides the creative shot in the arm that digital advertising sorely needs. More people are also using native programmatically and that means we’ll see even more scale and more trading across national and regional borders,” he said.

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