Yahoo! (NASDAQ: YHOO) is pushing the native advertising industry forward as fast as it can. With a headline on its blog declaring 2015 “The Year of the Native Ad,” and claiming the industry will double in size within the next three years, Yahoo! CEO Marissa Mayer wants to move to #1 from her current #3 position in the mobile advertising business.
Native ads differ from display (“banner”) ads in that native ads look like organic content: sponsored articles, endorsed photographs, or paid blogs. Native ads work particularly well on small screens, because they appear directly within the feed of content, rather than squashed into a small banner area. “Banner ads just don’t work on the phone,” says Mayer.
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IZEA FEATURED
According to the largest native ad study to date, The 2014 State of Sponsored Social Study by IZEA Inc (OTC: IZEA), native ads are currently more effective than celebrity endorsements, online banners, TV radio and print ads. The same study found that a slight majority of U.S. marketers have budgets specifically dedicated to native ads.
One of largest native ad platforms, IZEAx, hosts 243,000 registered users with a combined fan and follower base of 2.3 billion people- about 1/3 of the world. Currently CEO of one of the world’s largest native ad platforms, IZEA’s Ted Murphy projects triple-digit sales growth for the platform in 2015. IZEAx has inferior scale to only the native ad platforms within the largest social networks like Facebook (NASDAQ: FB) or Twitter (NYSE: TWTR). Murphy founded the world’s first sponsored blogging marketplace in 2006.
