Dive Brief:

• MediaRadar reports that native ad renewal rates from 2016 hit only 33%, with 20% of advertisers using the format posting renewal rates below 20%, according to MediaPost.
• The success of native ads also differed by publisher with the top native sellers, such as The Atlantic and QZ, achieving renewal rates of 60%-80%.
• What will separate native ad winners and losers is posting strong performance for the ads and providing advertisers with positive results, according to Todd Krizelman, MediaRadar CEO, as told to Real-Time Daily in an email.

Dive Insight:

Native advertising is becoming more ubiquitous as website visitors have become “banner-blind” and don’t necessarily enjoy the user experience of pre-roll ads. The format can help circumvent the biggest issues that hurt online publishers and marketers alike, particularly ad blocking technology.

However, the findings by MediaRadar indicate that publishers are still very much finding their way in effectively implementing and measuring native ads for their advertising partners. The results shouldn’t be overly surprising since native advertising is still relatively nascent in the grander scheme of things. 

Marketers taking advantage of native advertising and sponsored posts should ensure those ads are properly disclosed as federal agencies have been paying closer attention to native disclosure. On the positive side for native in 2017, the IAB released its forecast for the format last month, which predicted that native ads will expand into virtual reality, in-messaging apps, vertical video, 360 video and mobile-first video this year. 

The report also stated that marketers' budgets will continue to shift away from traditional display in favor of native.