An overview from Pat Connolly from Conde Nast's 23 Stories on the branded content and native marketplace.

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AGENDA
• What is Native Advertising, and why does it
exist?
• How do we define what is and isn’t native?
• Types of Native Advertising
• How do we know if it’s working?
• What role does programmatic play?
• What’s to expect in the future?
2

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WHAT IS NATIVE?
It’s talked about a lot, so what is it?

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GROWTH
0
2.5
5
7.5
10
2013 2018
US NATIVE AD SPENDING, 2013 & 2018*
2013
1.3b
2018
9.4b
*Source: Mintel as cited in press release;
eMarketer calculations, Aug 5, 2014

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MARKETER
6
CONSUMER
23 STORIES X CONDÉ NAST | 4A’S

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YOU ARE
MORE
LIKELY
TO CLIMB
EVEREST
…THAN CLICK A
BANNER

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0
275
550
825
1100
Brand Ad Co-Brand
1,041
339.4
128.4107.8
Brand Audience Publisher Audience
8
SO WHY NATIVE?
3x
8x
Study Sample: 10 social posts, 5 advertisers
Time Period: 10/14 - 1/15, Facebook. Source: Shareablee

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HOW DO WE
DEFINE NATIVE?
Native is a broadly defined term? How do we balance
breadth in offerings with marketplace standards?

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“A FORM OF CONJOINT MEDIA THAT HAS
BOTH THE ELEMENTS OF PAID MEDIA AS
WELL AS OWNED CONTENT THAT IS
TRANSFORMED INTO A COMMERCIAL
MESSAGE TO A SPECIFIC PLATFORM”
- Socintel360
AKA….
A MESSAGE FROM A BRAND THAT YOU
WANT TO READ, NOT THAT YOU HAVE TO
READ, PRESENTED IN A WAY THAT’S
NATIVE TO THE PLATFORM IT’S
CONSUMED.
15
WHAT IS
NATIVE
ADVERTISING

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TYPES OF
NATIVE
Native is broadly defined. How does the industry define it?
How are publishers creating their own standards?

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PAID-SEARCH UNITS
IN-FEED UNITS
RECOMMENDATION WIDGETS
PROMOTED LISTINGS
IN-AD (IAB STANDARD) WITH NATIVE ELEMENTS
CUSTOM
FORBES YAHOO! FACEBOOK TWITTER
YAHOO! GOOGLE BING ASK
OUTBRAIN TABOOLA DISQUIS GRAVITY
ETSY AMAZON FOURSQUARE GOOGLE
APPSSAVVY EA ONE SPOT FEDERATED
CONDE NAST FLIPBOARD TUMBLR PANDORA
MARTINI MEDIA
SPOTIFY
THE CORE 6

18. 23 STORIES X CONDÉ NAST
IN FEED
23 STORIES X CONDÉ NAST

19. 23 STORIES X CONDÉ NAST
PAID
SEARCH
23 STORIES X CONDÉ NAST

20. 23 STORIES X CONDÉ NAST
RECOMMENDATION
23 STORIES X CONDÉ NAST

21. 23 STORIES X CONDÉ NAST
PROMOTED
LISTINGS
23 STORIES X CONDÉ NAST

22. 23 STORIES X CONDÉ NAST
IN-IAB
23 STORIES X CONDÉ NAST

23. 23 STORIES X CONDÉ NAST
CUSTOM
BRAND
SUPPLIED AD
CONDÉ NAST EDIT
CONTENT ONLY
BRAND
SUPPLIED AD
Editorial content, presented with “Brought
to you by Brand X” slug.
No brand or product integration.
SPONSORED EDIT
Brand XLOGO
Brand X
BRAND AD
BRAND
AD
BROUGHT TO YOU BY

24. 23 STORIES X CONDÉ NAST
BRAND
SUPPLIED AD
BRAND
APPROVED
ARTICLE
BRAND
SUPPLIED AD
CUSTOM
Tier 2 content reflects advertiser messaging
about the editorial platform.
Audiences will find this strategically
targeted content engaging and get
a sense of the advertiser empowering the
story through branding (logos) and language.
BRANDED CONTENT
Brand X
Brand X
LOGO
BRAND AD
BRAND
AD
PRODUCED FOR WITH

25. 23 STORIES X CONDÉ NAST
BRAND
SUPPLIED AD
BRAND APPROVED
ARTICLE
WITH PRODUCT
INTEGRATION
BRAND
SUPPLIED AD
CUSTOM
Content produced by 23S on behalf
off Client that mirrors Tier 2 but also
directly integrates the advertiser or
products into the story.
PRODUCT INTEGRATION
Brand X
Brand XLOGO
BRAND AD
BRAND
AD
PRODUCED FOR WITH

26. 23 STORIES X CONDÉ NAST
I.C.E.
IMMERSIVE CONTENT
EXPERIENCE
WHAT:
Brands who want to go beyond the
standard native article or video, and
create a more immersive
destination to engage with the
brand. Lives at the intersection of
content and technology.
WHO:
• Conde Nast
• WSJ
• NY Times
• Quartz

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IS IT WORKING?
How do we know if Native advertising is working?

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WHY ARE WE DOING IT?
Web Traffic
Social Media
Time Spent
Direct Sales
Qualitative
SEO
0% 14% 28% 42% 56% 70%

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WHY AREN’T WE DOING IT?
Lack of Time
Engagement
Lack of Budget
Volume
Innability to Measure
Variety
Lack of Knowledge
0% 12% 24% 36% 48% 60%

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THE PARADOX
“We’re creating customized experiences.
What makes these opportunities unique and
valuable is often what precludes you from
scaling them. We approach these
partnerships slightly differently—I want to
know what the publication is uniquely
positioned to deliver. Sometimes it’s the
audience, the technical capabilities, the
distribution and sometimes it’s the behavior
of the audience (how social they are). It’s a
little difficult to scale in native right now.”
—Amanda Rubin, Goldman Sachs
30
“What makes
these
opportunities
unique and
valuable is often
what precludes
you from scaling
them.”

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*
LOW INTEGRATION
HIGH SCALE
THE NATIVEPARADOX
TABOOLA
YAHOO!
OUTBRAIN TIME
INC
HIGH INTEGRATION
FORBES
WSJ
VOGUE
ATLANTIC
WIRED
VOX
NAME
NAME
KEY*
Publisher Websites
(representing specific
titles/domains)
23S
NY
TIMES
BUZZFEED
Networks
(representing a collection
of titles or a platform)

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DO IT…
AND DO IT WELL
How to follow some industry best practices on how to create
content worthy of a publisher’s home page

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• CREATE YOUR CONTENT COMPETITIVE SET
This may not be your traditional competitive set, the
brands you’re trying to steal share from, or customers
from.
• THINK ABOUT ATTENTION, NOT TRANSACTION
Who is your desired “audience” spending time with?
33
1. PERSPECTIVE
REDEFINING YOUR
COMPETITIVE SET

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THINK LIKE A READER,
NOT A BRAND
34
2. BE A READER
• CREATE CONTENT FOR AN AUDIENCE, NOT FOR
YOUR BRAND
When your or your partner are creating branded
content, think about whether this is interesting to earn
attention, not to sell a product.
• THE SOCIAL TEST
Would you share it? Would your friends, family?

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WHAT’S YOUR
POINT OF VIEW
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3. POV
• ARE YOU STATING A FACT, OR BUILDING A POV?
Content that earns attention, and creates social value
has a point of view, it stands for something the reader
can relate to.
• ARE YOU BUILDING A BRAND PERSONALITY?
Leading content brands need to establish both a POV
and a voice, tone and personality for the brand. ALL
brand communications should ladder up to that.

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IF YOU BUILD IT, THEY
MAY NOT COME
36
4. AMPLIFY
• ARE YOU BUILDING A AUDIENCE FOR YOUR
CONTENT?
There is far too much noise today to create a piece of
content without a plan to build an audience.
- Is your partner(s) syndicating content across their
network?
- Are you using paid and earned social?
- Search (paid and SEO)

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MEASURE, IMPROVE,
REPEAT
37
5. MEASURE
• DO YOU KNOW WHAT YOUR KPIs ARE?
If you don’t know what you expect your content to do,
how can it possible succeed?
- Rigorously define KPIs (in order of importance)
- Make sure your measurement plan gives you (as-
close-to) real time insights as possible
- Make sure you (and your team) are built to respond

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ROLE OF
PROGRAMMATIC
With an ever evolving automation marketplace, making media buying and selling more
efficient and scalable, will the application of programmatic kill Native, or help it thrive?

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NATIVE
• Wide debate among the publisher, ad tech and agency
community around whether or not Native should be a
programmatic offering.
• Pro’s and Con’s to both sides of debate (can it live as
both?
• In the end, is it about what the advertiser is trying to
achieve? Are there implications to the value of a native
ad?
IN PROGRAMMATIC
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THE BARBELL
PROGRAMMATIC
PROS
Ability to quickly scale media
programs by matching data with
inventory. Efficiency.
WHAT IT’S
GOOD FOR
Scale media buys with creative
that applies broadly to a segment
BESPOKE
PROS
Highly custom creative and media
placements that have high impact.
Creativity.
WHAT IT’S
GOOD FOR
Creative/Media that has a
significant impact on a specific
audience
TRIPLE
LIFT
CONDE
NAST
OUT
BRAIN
TABOOLA
NY
TIMES
R29

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WHAT’S COMING?
So we know why we’re doing it,
and why it works, but what’s next?

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4 THINGS TO
WATCH FOR
1. Measurement Models Evolve
Look for more view and engagement based models, shifting
towards an attention economy.
2. Clients Open Shop
Clients are restructuring PR and Marketing to be always on.
3. Death of the Campaign
Planning cycles need to die. Agencies, publishers and clients
need to figure out how they do business in an always on world.
4. If You’re Not Learning, You’re Losing
The goal shouldn’t be to product a winning piece of content
every time, but learn, and iterate.
IN NATIVE ADVERTISING
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43. CONTACT:
PAT CONNOLLY
PAT_CONNOLLY@23STORIES.COM
@CONNOLLYPAT