65% of agencies think native addresses creativity gap in digital

There is more confidence and budget, with programmatic and mobile seen as the two main areas for growth in the UK’s native advertising market, according to new research.

The survey by Adyoulike found that 16% of native advertising spend now comes from new dedicated budget, as compared to only 6% last year, and that 63% of agencies are now very confident that the native market is well regulated (up from only 33% in 2014).

In addition, UK agencies currently say native will account for an average of 18% of their total digital display spend in 2015.

Creativity is seen as a key force behind the future growth of native advertising, with almost two-thirds of agencies (65%) saying that native’s fundamental role is addressing the creativity challenge in digital advertising.

Getting past ‘banner blindness’ is seen as the number one factor currently driving agency spend on native, with engagement second and the opportunity for better creative coming in third.

Francis Turner, managing director of Adyoulike UK, comments: “A lot of the challenges that existed around native advertising last year, such as regulation and budget, have become less of an issue as brands and agencies fully grasp everything native can do for them.

“Native is a highly creative medium that offers brands and publishers a way to deliver high-value content at scale.

“This is particularly true on mobile – the second screen is more important than ever and native is clearly the way to reach consumers through those devices. Traditional display advertising simply doesn’t work there.”