At the same time, native video advertising was expected to account for around 84% of all video ad spending in the US. To put that into perspective, digital video advertising spending reached $47.1b in 2022, meaning that close to $40b of that went to native video ads. 

There’s no longer an argument that the less ads look like ads the better—and here’s proof. More than half of people prefer native ads over banner ads, while native ads are 18% more likely to lead to purchase intent.

B2B advertisers are responding as you’d expect. According to MediaRadar’s data sample during H1 2023, 7.9k companies promoted 11.8k brands via native B2B advertising digital outlets, collectively spending almost $171mm. On a more granular level, the average monthly investment in B2B native ads fell at around $28.5mm, with peak spending coming in April.

So, what’s next for native advertising in B2B media? Here are three trends to keep an eye on this year.

Advertisers Mix and Match with B2B Native Ads

Native ads warrant significant dollars from advertisers across B2B media outlets, but advertisers aren’t betting on a single horse. Instead, they’re diversifying their media mixes, catering to different audiences, and investing in other channels and formats to figure out how to maximize their budgets.  

Pro Tip: Understand advertisers’ messaging by tapping into MediaRadar to see their most recent ad creative, when and where it ran on the page, as well as the editorial content surrounding them.

Although a fair share of advertisers in our sample spent exclusively on native ads (1.4k or 18%), including FinanceBuzz and Dudley Resources, most advertisers spread their wealth across multiple formats, including display and events.  

For example, of the nearly 1.6k advertisers who opted for native and one other format, 55% (872) slotted in digital display ads, while 18% (277) went with events. 

Interestingly, almost 1.4k advertisers added at least five additional formats to their investment in B2B native ads, which not only speaks to the myriad of available inventory available but advertiser’s desire to get in front of buyers in as many ways as possible. 

This illustration from Gartner charts the complexity of the B2B buying journey and, more importantly, the multitude of touchpoints B2B advertisers need to address. Mixing and matching native B2B ads with other formats is the only realistic way advertisers can stay in front of buyers throughout this journey—a journey that can take months and include input from up to ten decision-makers. 

A Handful of Industries Buoy B2B Native Advertising 

Despite native advertising’s prominence and proven prowess as people crave more natural ad experiences—68% of consumers trust native ads in an editorial context—advertisers in just five categories accounted for the bulk of spending in H1. 

Through June, advertisers in the Technology, Finance, B2B Industrial, Media & Entertainment, and Professional Services industries spent nearly $135mm on B2B native ads or 79% of the investment. 

For example, advertisers for 1.9k technology companies spent nearly $35mm on B2B native ads through June, with software advertisers, including those from RELX Group, SAS Institute, and Chaikin Analytics, accounting for 58% of that investment. 

For these technology advertisers, the strong spending in H1 comes after an equally strong 2022. Through October 2022, more than 21.2k technology advertisers spent nearly $12b on digital, print and TV ads, representing a 27% YoY increase from 2021. Overall, their average monthly investment increased by more than 95% YoY ($930mm in 2021 vs. $1.8b in 2022), with the biggest spike coming in September in preparation for the holiday season. 

Also in H1, advertisers for nearly 600 finance companies spent $30.4mm on B2B native ads, including those at State Street Corporation, Pictet Group, and Direxion, who combined to spend $10.8mm or 35% of the finance spending. Overall, financial institutions and services accounted for 72% of the category’s investment. 

For these finance advertisers investing in B2B native ads, spending comes at a turbulent time. Not only did the collapse of Silicon Valley Bank throw a wrench into their advertising strategies at the beginning of the year, but ongoing economic hardships continue to reduce the demand for some of their products and services. 

For example, as mortgage interest rates rise, spending from real estate advertisers has declined. In 2022, 11.9k real estate advertisers spent more than $2.3b on ads, representing 15% and 23% YoY decreases, respectively.

Finally, over 1.6k B2B Industrial companies spent more than $26mm on native media through June, namely, those promoting industrial machinery, electronics, and chemicals, who accounted for 33% of the category’s spend. 

While the uncertain economy and business hardships often hit industrial companies and their advertisers particularly hard, their investment in B2B native media could remain steadfast as we move through 2023 and their target audiences take their buying habits online. 

A recent McKinsey & Co. survey of nearly 4,000 business executives in 13 countries found that B2B eCommerce has taken the lead as the most effective sales channel. 

Pro Tip: Get a streamlined view of all advertiser activity to inform your proposals and show prospects how their competition is allocating their advertising budgets across channels and formats.

There’s Still Native B2B Inventory Out There 

Despite advertisers in five industries accounting for 79% of the investment in B2B native ads, there’s still plenty of inventory available for advertisers ready to ride the native-advertising wave. 

Through June, advertisers for nearly 6k companies advertised 8k brands or product lines via B2B native ads, collectively spending more than $197mm. (Over half of that investment came from advertisers in the Technology, B2B Industrial, and Professional Services industries.)

Pro Tip: Use MediaRadar to instantly show your prospects mock-ups of what their B2B native ads will look like surrounded by your relevant reporting.  

These fresh investments, coupled with the substantial sums from existing players, position B2B native ads—regardless of where they appear—in a prime position to thrive despite the uncertain economy and unprecedented pressure on advertising budgets. 

For more insights, sign up for MediaRadar’s blog here. 

During the pandemic, the construction industry was turned on its head and taken for another spin as the shaky economy put fear into consumers and businesses. 

Unsurprisingly, that impacted how construction advertisers invested their ad dollars, including B2B media. But as the world starts to rebound, advertisers are coming back. 

According to MediaRadar’s data sample of nearly 1.9k B2B media publications, construction equipment and materials advertisers from more than 430 companies invested over $12.8mm in B2B media in Q1 2023, representing an 89% YoY increase. 

Here’s what you need to know. 

January Served As a Launchpad for Construction Equipment & Materials Advertisers

Rumblings of a recession picked up throughout much of 2022. In September 2022, Steve Hanke, a professor of applied economics at Johns Hopkins University, pegged the chance of a recession in 2023 at 80%. 

While the chance of a recession in 2023 remains—and even seems inevitable—the economy’s strong finish in 2022 gave advertisers for construction equipment and materials confidence that commercial and residential projects would pick up in the new year. 

In January, these advertisers’ spending on B2B media spiked by more than 260% YoY. For example, advertisers from Applied Machinery Sales (AMS), Caterpillar, and Godbersen-Smith Construction Co., increased spending by 180% YoY. 

Spending at events like the World of Concrete in Las Vegas was also popular. In fact, over 1.1k brand names spent $26mm+ to exhibit their products, with nearly a third ($8mm) coming from advertisers promoting construction equipment and products, concrete machinery, power tools, industrial concrete, and construction equipment retailers. 

For example, nearly 50 construction equipment and product advertisers spent over $3.3mm at the event, including Caterpillar, Fascan International, and Somero Enterprises. At the same time, almost 25 concrete machinery companies—think Alliance Concrete Pumps Inc., New Grind Inc., and Sany Heavy Industry Co.—dished out more than $1.5mm.  

Finally, over 30 industrial concrete companies, including Cemen Tech, Quikrete, and Schwing America, spent nearly $1.2mm to tout their products at one of the industry’s marquee events. 

Following a modest increase in February by 7% YoY to ~$1.8mm—EXOR increased ad spend for its Case Construction equipment lines by 287%—spending fell in March by 15% YoY to $430mm. 

The decrease could indicate that advertisers have seen the writing on the wall scribed by an unstable banking industry that’s already seen the collapse of Silicon Valley Bank. 

According to Mike Riddell, senior fixed-income portfolio manager at Allianz Global, “The bigger, medium-term implication of what’s happened in the last month is that global growth will be far weaker in six months than we thought even just a few weeks ago.” 

That somewhat gloomy outlook will impact how construction equipment and material advertisers spend on B2B media for the remainder of the year.

The Demand for Concrete (and Ads) Rises  

The bulk of B2B media spending from these advertisers comes from those in three categories—two of which involve concrete. 

In Q1, advertisers for concrete machinery, industrial concrete, and construction equipment spent more than $8.5mm or 66% of the segment’s investment in B2B media. 

For these advertisers, spending comes amid industry growth. According to a market research study, the demand for global high-strength concrete is expected to grow at a compound annual growth rate (CAGR) of 5% between 2023 and 2030, when it’ll reach nearly $508b.

The market for rapid-strength concrete is expected to grow at a similar rate, which could put companies like Aggregate Industries (Holcim Group), Boral Limited, Bostik (Arkema S.A.), and Tarmac (CRH plc) in a position to increase spending on B2B media. 

Despite the demand, their situation is no different than their contemporaries elsewhere in the construction equipment and materials industry. The uncertain economy is even impacting the projects of some of the world’s richest companies. 

For example, Meta, the parent company of Facebook, Instagram and WhatsApp, announced a construction pause for its new $800mm data center. Google also paused the construction of a data center.

That said, some industry experts expect the demand for these structures to remain strong, which could keep the wallets of these advertisers open. 

Danny Horton, senior project manager of the data center division at PCL Construction, said, “While the layoffs have hit the industry hard, new opportunities [for data centers] continue to arise, and we’ll keep seeing momentum and growth for years.” 

What’s Next for Construction Equipment and Materials Advertisers? 

The strategies for construction equipment and materials advertisers are up in the air. Some experts, like Danny Horton, are bullish on the industry’s outlook, while others fear stagnation. 

Advertisers across the industry will respond accordingly and give B2B media some love. That said, advertisers will look to diversify their media mixes by investing in other channels, including online video and paid social. 

In Q1, construction equipment and product advertisers increased their investment in digital ads by more than 50% YoY to $6.5mm. Over $2.1mm of that investment in the first quarter went to Facebook and Instagram, including this ad from Bobcat.
 

At the same time, EXOR (Case Construction), Manitou, and others tapped into outlets like Accuweather, Investing.com, and the New York Post. YouTube even received some love, with advertisers increasing their investment in the platform by 47% YoY to roughly $290k.

For more insights, sign up for MediaRadar’s blog here.