The key driver for the colossal rise of native ad units is they have higher engagement rates than traditional banners. The report finds that engagement rates are 20 to 60 percent higher on native ads than on banners and drive retention rates that are 3x higher. On the Facebook Audience Network, the agency says CPMs are seven times higher for native units compared to banners. Additionally, the report anticipates that third party in app advertisements will grow as more publishers shift to programmatic selling, more ad tech providers establish functions to handle native ad formats and the popularization of mobile commerce drives more advertisers to augment mobile ad spend.
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