The results of a study by the IHS and Facebook showed this will be the case by the year 2020.
A recent Facebook and IHS study revealed statistics and forecasts with regards to the use of mobile ads and showed that they will be making up 63 percent of display advertising by 2020.
This prediction was made based on the stats collected through the Audience Network at Facebook.
The mobile ads trends report predicted that over the next four years, media buyers will be spending $84.5 billion on advertising over smartphones, tablets and whatever other mobile devices have gone mainstream by that time. In fact, that channel of marketing will make up 75.9 percent of all global digital ad spend, says the report. It also underscored native as being an important driver of mobile ad growth.
Native mobile ads displayed in-stream will be the driver behind 63.2 percent of all display ads over the channel.
By 2020, that will represent a spending of $53 billion. The study has forecasted that third-party in-app native advertising – that is, those that are not actually running on Facebook will represent the digital advertising format with the most rapid growth rate. The prediction is that it will see a compound annual growth rate (CAGR) of 70.7 percent from 2015 through 2020. This means that it will make up 10.6 percent of the total spending on mobile display ads.
The main driving force behind this strong native ad growth rate is the engagement rates that these mobile advertisements consistently achieve, as they are higher than those measured through traditional banner ads. In the report, it stated that native ad engagement rates are a massive 20 to 60 percent better than those recorded for banners. Moreover, native also features improved retention rates, as those are an average of three times higher than banner.
The CPMs over the Facebook Audience Network, those figures are even greater. The report showed that they are seven times greater over native mobile ads than they are over banners. Moreover, the predictions within the report indicate that third-party in-app advertising will only continue its rapid growth as a growing number of publishers transition to programmatic sales, as more advertising technology providers solidify their capabilities for supporting various formats of native ads, and as m-commerce becomes more popular and sends more marketers to boost their spending over the channel.