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3 Native Advertising Trends in B2B Media to Keep Your Eyes On This Year

In 2023, B2B advertisers significantly increased native advertising spending—nearly $171 million in the first half alone—while diversifying their media strategies by combining native ads with other formats like digital display and events to effectively engage complex, multi-decision-maker buying journeys.

Native ads have become a major force in programmatic advertising. According to Insider Intelligence, native display ad spending was expected to increase by 14.9% year-over-year and surpass $87 billion last year. Native video advertising was projected to account for around 84% of all video ad spending in the US. For context, digital video advertising spending reached $47.1 billion in 2022, with close to $40 billion of that going to native video ads.

There is clear evidence that ads which blend in with content perform better: more than half of people prefer native ads over banner ads, and native ads are 18% more likely to lead to purchase intent.

B2B advertisers are responding accordingly. MediaRadar’s data from the first half of 2023 shows that 7,900 companies promoted 11,800 brands via native B2B advertising on digital outlets, collectively spending almost $171 million. The average monthly investment in B2B native ads was around $28.5 million, with peak spending in April.

So, what’s next for native advertising in B2B media? Here are three trends to watch this year:

1. Advertisers Mix and Match with B2B Native Ads

While native ads attract significant investment, advertisers are not relying solely on them. Instead, they are diversifying their media mixes, targeting different audiences, and investing in various channels and formats to maximize their budgets.

Although some advertisers spent exclusively on native ads (1,400 or 18%), most spread their budgets across multiple formats, including display and events. Of the nearly 1,600 advertisers who used native and one other format, 55% included digital display ads, and 18% included events. Nearly 1,400 advertisers added at least five additional formats to their B2B native ad investments, reflecting both the variety of available inventory and the desire to reach buyers through multiple touchpoints.

The B2B buying journey is complex, often involving months of consideration and input from up to ten decision-makers. Mixing and matching native B2B ads with other formats is a practical way for advertisers to maintain visibility throughout this journey.

2. A Handful of Industries Buoy B2B Native Advertising

Despite the popularity of native advertising, just five categories accounted for the majority of spending in the first half of the year. Advertisers in Technology, Finance, B2B Industrial, Media & Entertainment, and Professional Services spent nearly $135 million on B2B native ads, representing 79% of the total investment.

For example, 1,900 technology companies spent nearly $35 million on B2B native ads through June, with software advertisers accounting for 58% of that investment. Technology advertisers saw strong spending in both 2022 and 2023, with a notable increase in average monthly investment year-over-year.

Finance companies also invested heavily, with nearly 600 companies spending $30.4 million on B2B native ads. State Street Corporation, Pictet Group, and Direxion together accounted for 35% of finance spending. Financial institutions and services made up 72% of the category’s investment. However, the finance sector faced challenges, such as the collapse of Silicon Valley Bank and ongoing economic hardships, which affected advertising strategies and demand for products and services.

In the real estate sector, rising mortgage interest rates led to a decline in ad spending. In 2022, 11,900 real estate advertisers spent more than $2.3 billion on ads, representing year-over-year decreases.

B2B Industrial companies also invested significantly, with over 1,600 companies spending more than $26 million on native media through June. Advertisers promoting industrial machinery, electronics, and chemicals accounted for a third of the category’s spend. Despite economic uncertainty, investment in B2B native media may remain steady as more B2B buyers move their purchasing habits online. A recent McKinsey & Co. survey found that B2B eCommerce is now the most effective sales channel.

3. There’s Still Native B2B Inventory Out There

Even though five industries account for 79% of B2B native ad investment, there is still ample inventory available for advertisers looking to capitalize on native advertising. Through June, advertisers for nearly 6,000 companies promoted 8,000 brands or product lines via B2B native ads, collectively spending more than $197 million. Over half of that investment came from Technology, B2B Industrial, and Professional Services industries.

These new investments, combined with ongoing spending from established advertisers, position B2B native ads for continued growth, even amid economic uncertainty and pressure on advertising budgets.