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Native ads will provide 25 percent of ad revenues by 2018

Native advertising already accounts for 11 percent of ad revenues at news media companies, according to a new report, and will rise to 25 percent in 2018.

The study, done jointly by the International News Media Association and the Native Advertising Institute, is based of a survey of 156 publishers worldwide, most of them at newspaper companies.

I’m guessing that those who chose to respond may have skewed to outfits heavily into native advertising, but the result is still testimony to the fast rise and strong prospects of the format.

The survey, conducted in late summer, found that 48 percent of newspaper media are doing some form of native ads. Another 39 percent expect to add it as an option.

The group rated native the most promising new advertising format, just ahead of programmatic.

Part of the allure of native ads is that they command higher rates than traditional formats. But the report observes that while that ratio may have run as high as six times “in the early days,” it is coming down as the market becomes more saturated.

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