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The Advertising Revolution: How Native Ads Have Changed the Game

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The Advertising Revolution: How Native Ads Have Changed the Game

The Advertising Revolution

Sponsored by: Market One Media Group

Many decades ago, the world was much simpler for advertisers.

Buying a ½ page newspaper ad or a 30-second television spot reached thousands of people, and consumers weren’t oversaturated with ads.

Today, we are bombarded with over 5,000 brand exposures each day. Of those, 362 are advertisements with only 12 of them “making an impression” on us.

Here’s a breakdown of average exposure per day:

  • Average number of advertisement and brand exposures per day per person: 5,000+
  • Average number of “ads only” exposures per day: 362
  • Average number of “ads only” noted per day: 153
  • Average number of “ads only” that we have some awareness of per day: 86
  • Average number of “ads only” that made an impression (engagement): 12

With this oversaturation of the traditional ad market, the concept of “native ads” has emerged.

Native Ads

Native advertising is paid content that is created to fit the same format as a publisher’s organic content. In other words, it shows up to regular viewers as “sponsored” or “paid” posts in the same streams as regular content.

Native ad spending has exploded, and from 2013 to 2018, the industry is expected to quadruple in size.

There are compelling statistics for both the audience and advertisers on native ads:

Audience:

  • 70% of individuals want to learn about products or content through content rather than traditional advertising.
  • 32% of consumers said, when given a choice, that they would rather share a native ad with friends and family vs 19% for banner ads.
  • 57% of publishers have a dedicated editorial team to create content readers will care about, leaving publishers in full control, not brands, which ultimately benefits readers.

Advertisers:

  • People view native ads 53% more than banner ads.
  • Native advertising generates up to an 82% increase in brand lift.
  • Native ads that include rich media boost conversion rates by up to 60%.
  • Purchase intent is 53% higher with native ads (vs. 34%)
  • 49x higher clickthrough rate, 54% lower cost-per-click

New Media

Native ads are also being used by many of the “new media” and adtech companies that have had very successful fundraising rounds:

Vice
Latest raise: $250 million (2014)
Led by: A+E Networks
Valuation: $2.5 billion

AppNexus
Latest raise: $62.7 million (2015)
Valuation: $1.2 billion

Vox
Latest raise: $200 million (2015)
Led by: NBC Universal
Valuation: $850 million

Buzzfeed
Latest raise: $200 million (2015)
Led by: NBC Universal
Valuation: $1.5 billion

The Future of Native Advertising?

Right now 41% of brands use native advertising as part of their marketing mix, but the shift is only beginning. Here’s what experts think the future of native holds:

Tessa Gould, Director of Native Ads Products, The Huffington Post

“Next for native is being able to use other ad technologies to make native smarter. At the moment everyone is creating content and talking about social actions. But how do you go about retargeting the people who view the native ad elsewhere with banner ads and actually converting them into customers?”

Audra Martin, VP of Advertising, The Economist Group

“As publishers start to educate brands more and agencies more, the content will just get better. Then distribution, in terms of getting more sophisticated, not in terms of fooling readers but making it relevant to readers in the right place at the right time.”

Steve Edwards, Digital Sales Director, Hearst UK
“My main thing is about control. Native will continue to develop along the lines it has. Increasingly it’s about publishers taking control of the message and advertisers and brands coming along with us. Getting distribution right and getting measurement metrics right, how we actually measure success. How we can create work that is as good as the editorial that surrounds it. Take the logo off it, does it still work? That’s really interesting for us, and we’ve still got a way to get there.”

Sebastian Tomich, VP of Advertising, The New York Times
“Brands are jumping into native because they feel like they should be.”

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Visualized: A Global Risk Assessment of 2021 And Beyond

Which risks are top of mind in 2021? We visualize the World Economic Forum’s risk assessment for top global risks by impact and livelihood.

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Visualized: A Global Risk Assessment of 2021 And Beyond

Risk is all around us. After the events of 2020, it’s not surprising that the level and variety of risks we face have become more pronounced than ever.

Every year, the World Economic Forum analyzes the top risks in the world in its Global Risks Report. Risks were identified based on 800+ responses of surveyed leaders across various levels of expertise, organizations, and regional distribution.

Which risks are top of mind in 2021?

The World’s Top Risks by Likelihood and Impact

According to WEF’s risk assessment methodology, all the global risks in 2021 fall into the following broad categories:

  • 🔵 Economic
  • 🟢 Environmental
  • 🟠 Geopolitical
  • 🔴 Societal
  • 🟣 Technological

It goes without saying that infectious diseases have now become one of the top societal risks on both metrics of likelihood and impact.

That said, environmental risks continue to dominate the leaderboard, accounting for five of the top 10 risks by impact, especially when it comes to climate action failure.

Several countries are off-track in meeting emissions goals set by the Paris Climate Agreement in 2015, while the pandemic has also delayed progress in the shift towards a carbon-neutral economy. Meanwhile, biodiversity loss is occurring at unprecedented rates.

RankTop Risks by LikelihoodTop Risks by Impact
#1🟢Extreme weather🔴Infectious diseases
#2🟢Climate action failure🟢Climate action failure
#3🟢Human environmental damage🟠Weapons of mass destruction
#4🔴Infectious diseases🟢Biodiversity loss
#5🟢Biodiversity loss🟢Natural resource crises
#6🟣Digital power concentration🟢Human environmental damage
#7🟣Digital inequality🔴Livelihood crises
#8🟠Interstate relations fracture🟢Extreme weather
#9🟣Cybersecurity failure🔵Debt crises
#10🔴Livelihood crises🟣IT Infrastructure breakdown

As for other risks, the prospect of weapons of mass destruction ranks in third place for potential impact. In the global arms race, a single misstep would trigger severe consequences on civil and political stability.

New Risks in 2021

While many of the risks included in the Global Risks Report 2021 are familiar to those who have read the editions of years past, there are a flurry of new entries to the list this year.

Here are some of the most interesting ones in the risk assessment, sorted by category:

Societal Risks

COVID-19 has resulted in a myriad of knock-on societal risks, from youth disillusionment and mental health deterioration to livelihood crises. The first two risks in particular go hand-in-hand, as “pandemials” (youth aged 15-24) are staring down a turbulent future. This generation is more likely to report high distress from disrupted educational and economic prospects.

At the same time, as countries prepare for widespread immunization against COVID-19, another related societal risk is the backlash against science. The WEF identifies vaccines and immunization as subjects susceptible to disinformation and denial of scientific evidence.

Economic Risks

As monetary stimulus was kicked into high gear to prop up markets and support many closed businesses and quarantined families, the economic outlook seems more fragile than ever. Debt-to-GDP ratios continue to rise across advanced economies—if GDP growth stagnates for too long, a potential debt crisis could see many businesses and major nations default on their debt.

With greater stress accumulating on a range of major industries such as travel and hospitality, the economy risks a build-up of “zombie” firms that drag down overall productivity. Despite this, market valuations and asset prices continue to rise, with equity markets rewarding investors betting on a swift recovery so far.

Technological Risks

Last but not least, COVID-19 has raised the alert on various technological risks. Despite the accelerated shift towards remote work and digitalization of entire industries, the reality is that digital inequality leaves those with lower digital literacy behind—worsening existing inequalities.

Big Tech is also bloating even further, growing its digital power concentration. The market share some companies hold in their respective sectors, such as Amazon in online retail, threatens to erode the agency of other players.

Assessing the Top 10 Risks On the Horizon

Back in mid-2020, the WEF attempted to quantify the biggest risks over an 18-month period, with a prolonged economic recession emerging on top.

In this report’s risk assessment, global risks are further classified by how soon their resulting threats are expected to occur. Weapons of mass destruction remain the top risk, though on a much longer scale of up to 10 years in the future.

RankRisk%Time Horizon
#1🟠Weapons of mass destruction62.7Long-term (5-10 years)
#2🔴Infectious diseases58Short-term risks (0-2 years)
#3🔴Livelihood crises55.1Short-term risks (0-2 years)
#4🔵Asset bubble burst53.3Medium-term risks (3-5 years)
#5🟣 IT infrastructure breakdown53.3Medium-term risks (3-5 years)
#6🔵Price instability52.9Medium-term risks (3-5 years)
#7🟢Extreme weather events52.7Short-term risks (0-2 years)
#8🔵Commodity shocks52.7Medium-term risks (3-5 years)
#9🔵Debt crises52.3Medium-term risks (3-5 years)
#10🟠State collapse51.8Long-term (5-10 years)

Through this perspective, COVID-19 (and its variants) remains high in the next two years as the world scrambles to return to normal.

It’s also clear that more economic risks are taking center stage, from an asset bubble burst to price instability that could have a profound effect over the next five years.

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Visualizing Countries by Share of Earth’s Surface

There are 510 million km² of area on the Earth, but less than 30% of this is land. Here’s the share countries make up of the Earth’s surface.

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countries by share of earth's surface

Visualizing Countries by Share of Earth’s Surface

There are over 510 million square kilometers of area on the surface of Earth, but less than 30% of this is covered by land. The rest is water, in the form of vast oceans.

Today’s visualization uses data primarily from the United Nations Statistics Division (UNSD) to rank the world’s countries by their share of Earth’s surface.

Breakdown of Countries Share of Earth’s Surface

The largest countries by surface area are Russia (3.35%), Canada (1.96%), and China (1.88%).

Together they occupy roughly 7.2% of Earth’s surface. Russia is so big that even if we divided the country between its Asian and European sections, those new regions would still be the largest in their respective continents.

Country / DependencyTotal in km² (mi²)Percentage of Earth's Surface
Russia17,098,246 (6,601,670)3.352%
Antarctica14,000,000 (5,400,000)2.745%
Canada9,984,670 (3,855,100)1.958%
China9,596,961 (3,705,407)1.881%
United States9,525,067 (3,677,649)1.867%
Brazil8,515,767 (3,287,956)1.670%
Australia7,692,024 (2,969,907)1.508%
India3,287,263 (1,269,219)0.644%
Argentina2,780,400 (1,073,500)0.545%
Kazakhstan2,724,900 (1,052,100)0.534%
Algeria2,381,741 (919,595)0.467%
D.R. Congo2,344,858 (905,355)0.460%
Greenland (Denmark)2,166,086 (836,330)0.425%
Saudi Arabia2,149,690 (830,000)0.421%
Mexico1,964,375 (758,449)0.385%
Indonesia1,910,931 (737,815)0.375%
Sudan1,861,484 (718,723)0.365%
Libya1,759,540 (679,360)0.345%
Iran1,648,195 (636,372)0.323%
Mongolia1,564,110 (603,910)0.307%
Peru1,285,216 (496,225)0.252%
Chad1,284,000 (496,000)0.252%
Niger1,267,000 (489,000)0.248%
Angola1,246,700 (481,400)0.244%
Mali1,240,192 (478,841)0.243%
South Africa1,221,037 (471,445)0.239%
Colombia1,141,748 (440,831)0.224%
Ethiopia1,104,300 (426,400)0.216%
Bolivia1,098,581 (424,164)0.215%
Mauritania1,030,700 (398,000)0.202%
Egypt1,002,450 (387,050)0.197%
Tanzania945,087 (364,900)0.185%
Nigeria923,768 (356,669)0.181%
Venezuela916,445 (353,841)0.180%
Pakistan907,843 (350,520)0.178%
Namibia825,615 (318,772)0.162%
Mozambique801,590 (309,500)0.157%
Turkey783,562 (302,535)0.154%
Chile756,102 (291,933)0.148%
Zambia752,612 (290,585)0.148%
Myanmar676,578 (261,228)0.133%
Afghanistan652,230 (251,830)0.128%
South Sudan644,329 (248,777)0.126%
Somalia637,657 (246,201)0.125%
Central African Republic622,984 (240,535)0.122%
Ukraine603,500 (233,000)0.118%
Madagascar587,041 (226,658)0.115%
Botswana581,730 (224,610)0.114%
Kenya580,367 (224,081)0.114%
France543,940 (210,020)0.107%
Yemen527,968 (203,850)0.104%
Thailand513,120 (198,120)0.101%
Spain505,992 (195,365)0.099%
Turkmenistan488,100 (188,500)0.096%
Cameroon475,442 (183,569)0.093%
Papua New Guinea462,840 (178,700)0.091%
Sweden450,295 (173,860)0.088%
Uzbekistan447,400 (172,700)0.088%
Morocco446,550 (172,410)0.088%
Iraq438,317 (169,235)0.086%
Paraguay406,752 (157,048)0.080%
Zimbabwe390,757 (150,872)0.077%
Norway385,207 (148,729)0.076%
Japan377,976 (145,937)0.074%
Germany357,114 (137,882)0.070%
Republic of the Congo342,000 (132,000)0.067%
Finland338,424 (130,666)0.066%
Vietnam331,212 (127,882)0.065%
Malaysia330,803 (127,724)0.065%
Ivory Coast322,463 (124,504)0.063%
Poland312,696 (120,733)0.061%
Oman309,500 (119,500)0.061%
Italy301,339 (116,348)0.059%
Philippines300,000 (120,000)0.059%
Ecuador276,841 (106,889)0.054%
Burkina Faso274,222 (105,878)0.054%
New Zealand270,467 (104,428)0.053%
Gabon267,668 (103,347)0.052%
Guinea245,857 (94,926)0.048%
United Kingdom242,495 (93,628)0.048%
Uganda241,550 (93,260)0.047%
Ghana238,533 (92,098)0.047%
Romania238,397 (92,046)0.047%
Laos236,800 (91,400)0.046%
Guyana214,969 (83,000)0.042%
Belarus207,600 (80,200)0.041%
Kyrgyzstan199,951 (77,202)0.039%
Senegal196,722 (75,955)0.039%
Syria185,180 (71,500)0.036%
Cambodia181,035 (69,898)0.035%
Uruguay176,215 (68,037)0.035%
Somaliland176,120 (68,000)0.035%
Suriname163,820 (63,250)0.032%
Tunisia163,610 (63,170)0.032%
Bangladesh148,460 (57,320)0.029%
Nepal147,181 (56,827)0.029%
Tajikistan143,100 (55,300)0.028%
Greece131,957 (50,949)0.026%
Nicaragua130,373 (50,337)0.026%
North Korea120,540 (46,540)0.024%
Malawi118,484 (45,747)0.023%
Eritrea117,600 (45,400)0.023%
Benin114,763 (44,310)0.022%
Honduras112,492 (43,433)0.022%
Liberia111,369 (43,000)0.022%
Bulgaria111,002 (42,858)0.022%
Cuba109,884 (42,426)0.022%
Guatemala108,889 (42,042)0.021%
Iceland103,000 (40,000)0.020%
South Korea100,210 (38,690)0.020%
Hungary93,028 (35,918)0.018%
Portugal92,226 (35,609)0.018%
Jordan89,342 (34,495)0.018%
Serbia88,361 (34,116)0.017%
Azerbaijan86,600 (33,400)0.017%
Austria83,871 (32,383)0.016%
United Arab Emirates83,600 (32,300)0.016%
Czech Republic78,865 (30,450)0.015%
Panama75,417 (29,119)0.015%
Sierra Leone71,740 (27,700)0.014%
Ireland70,273 (27,133)0.014%
Georgia69,700 (26,900)0.014%
Sri Lanka65,610 (25,330)0.013%
Lithuania65,300 (25,200)0.013%
Latvia64,559 (24,926)0.013%
Togo56,785 (21,925)0.011%
Croatia56,594 (21,851)0.011%
Bosnia and Herzegovina51,209 (19,772)0.010%
Costa Rica51,100 (19,700)0.010%
Slovakia49,037 (18,933)0.010%
Dominican Republic48,671 (18,792)0.010%
Estonia45,227 (17,462)0.009%
Denmark43,094 (16,639)0.008%
Netherlands41,850 (16,160)0.008%
Switzerland41,284 (15,940)0.008%
Bhutan38,394 (14,824)0.008%
Taiwan36,193 (13,974)0.007%
Guinea-Bissau36,125 (13,948)0.007%
Moldova33,846 (13,068)0.007%
Belgium30,528 (11,787)0.006%
Lesotho30,355 (11,720)0.006%
Armenia29,743 (11,484)0.006%
Solomon Islands28,896 (11,157)0.006%
Albania28,748 (11,100)0.006%
Equatorial Guinea28,051 (10,831)0.005%
Burundi27,834 (10,747)0.005%
Haiti27,750 (10,710)0.005%
Rwanda26,338 (10,169)0.005%
North Macedonia25,713 (9,928)0.005%
Djibouti23,200 (9,000)0.005%
Belize22,966 (8,867)0.005%
El Salvador21,041 (8,124)0.004%
Israel20,770 (8,020)0.004%
Slovenia20,273 (7,827)0.004%
Fiji18,272 (7,055)0.004%
Kuwait17,818 (6,880)0.003%
Eswatini17,364 (6,704)0.003%
East Timor14,919 (5,760)0.003%
The Bahamas13,943 (5,383)0.003%
Montenegro13,812 (5,333)0.003%
Vanuatu12,189 (4,706)0.002%
Qatar11,586 (4,473)0.002%
The Gambia11,295 (4,361)0.002%
Jamaica10,991 (4,244)0.002%
Kosovo10,887 (4,203)0.002%
Lebanon10,452 (4,036)0.002%
Cyprus9,251 (3,572)0.002%
State of Palestine6,020 (2,320)0.001%
Brunei5,765 (2,226)0.001%
Trinidad and Tobago5,130 (1,980)0.001%
Cape Verde4,033 (1,557)0.001%
Samoa2,842 (1,097)0.001%
Luxembourg2,586 (998)0.001%
Mauritius2,040 (790)0.000%
Comoros1,862 (719)0.000%
São Tomé and Príncipe964 (372)0.000%
Kiribati811 (313)0.000%
Bahrain778 (300)0.000%
Dominica751 (290)0.000%
Tonga747 (288)0.000%
Singapore728 (281)0.000%
Federated States of Micronesia702 (271)0.000%
Saint Lucia616 (238)0.000%
Andorra468 (181)0.000%
Palau459 (177)0.000%
Seychelles452 (175)0.000%
Antigua and Barbuda442 (171)0.000%
Barbados430 (170)0.000%
Saint Vincent and the Grenadines389 (150)0.000%
Grenada344 (133)0.000%
Malta316 (122)0.000%
Maldives300 (120)0.000%
Saint Kitts and Nevis261 (101)0.000%
Marshall Islands181 (70)0.000%
Liechtenstein160 (62)0.000%
San Marino61 (24)0.000%
Tuvalu26 (10)0.000%
Nauru21 (8.1)0.000%
Monaco2.02 (0.78)0.000%
Vatican City0.49 (0.19)0.000%

Antarctica, although not a country, covers the second largest amount of land overall at 2.75%. Meanwhile, the other nations that surpass the 1% mark for surface area include the United States (1.87%), Brazil (1.67%), and Australia (1.51%).

The remaining 195 countries and regions below 1%, combined, account for the other half of Earth’s land surface. Among the world’s smallest countries are the island nations of the Caribbean and the South Pacific Ocean. However, the tiniest of the tiny are Vatican City and Monaco, which combine for a total area of just 2.51 km².

The remaining 70% of Earth’s surface is water: 27% territorial waters and 43% international waters or areas beyond national jurisdiction.

Areas Beyond National Jurisdiction

In the past, nations adhered to the freedom-of-the-seas doctrine, a 17th century principle that limited jurisdiction over the oceans to a narrow area along a nation’s coastline. The rest of the seas did not belong to any nation and were free for countries to travel and exploit.

This situation lasted into the 20th century, but by mid-century there was an effort to extend national claims as competition for offshore resources became increasingly fierce and ocean pollution became an issue.

In 1982, the United Nations adopted the Law of the Sea Convention which extended international law over the extra-territorial waters. The convention established freedom-of-navigation rights and set territorial sea boundaries 12 miles (19 km) offshore with exclusive economic zones up to 200 miles (322 km) offshore, extending a country’s influence over maritime resources.

Does Size Matter?

The size of countries is the outcome of politics, economics, history, and geography. Put simply, borders can change over time.

In 1946, there were 76 independent countries in the world, and today there are 195. There are forces that push together or pull apart landscapes over time. While physical geography plays a role in the identity of nations, Sheikh Zayed bin Sultan Al Nahyan, the former ruler of UAE, a tiny Gulf nation, put it best:

“A country is not measured by the size of its area on the map. A country is truly measured by its heritage and culture.”

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