Advertising

Can you tell when something is an ad?

Maybe. On television, radio, and billboards, it's pretty obvious. But online, ads are becoming harder and harder to spot.

 Source: Fixing Native Ads:  What Consumers Want From Publishers, Brands, Facebook, and the FTC ( Contently)

Source: Fixing Native Ads:  What Consumers Want From Publishers, Brands, Facebook, and the FTC (Contently)

Social media platforms like Facebook use a method called native advertising to disguise their ads to look like normal content. 

And it works. In one study released by Contently, 77% of the participants incorrectly labeled native ads as either “editorial content” (34%) or a “hybrid” (43%).

In reality, most of us rarely stop to think whether something is or isn't an ad. That's the beauty of native ads on our social media accounts: they create a seamless experience that makes us much more likely to engage with ads. 
 

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How much money is there in online advertising?

In 2016, digital advertising revenue in the United States increased nearly 22% to a record $72.5 billion, and was the first year that digital ad spending surpassed TV ad spending. 

You've heard of Facebook and Google? They accounted for 99% of all growth. At this point, the degree to which they dominate the industry is staggering. 

Google and Facebook are huge companies. They currently rank #2 (Google) and #6 (Facebook) on the list of most valuable companies in the world. And they make almost all of their money through digital ads.

During the second quarter of 2017, Facebook posted earnings of $9.3 billion, a 45% increase from the previous year. 98% of their revenue came from advertising.

Meanwhile, Google earned $26 billion in the first quarter, a 21% increase from 2016, of which 87% came from advertising.

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