Overview and Information on native advertising - definition, Republic Media opportunities, examples, benefits, tips and industry statistics

1. N A T I V E A D V E R T I S I N G
O N A Z C E N T R A L . C O M
A U G U S T 2 0 1 4

2. 2
CONTENTS
• DEFINITION
• REPUBLIC MEDIA NATIVE ADVERTISING OPPORTUNITIES
• EXAMPLE PAGES
• NATIVE ADVERTISING BENEFITS
• TIPS FOR EFFECTIVE NATIVE ADVERTISING
• INTERESTING INDUSTRY STATISTICS

3. NAT IVE ADVE RT IS ING
DE FINIT ION

4. 4
DEFINITION
• Native advertising is an online advertising method in which the
advertiser attempts to gain attention by providing content in the
context of the user's experience. Native ad formats match both the
form and the function of the user experience in which it is placed.
• The advertiser's intent is to make the paid advertising feel less
intrusive and thus increase the likelihood users will click on it. The
word "native" is used to refer to the formatting of the advertising
materials to make them appear more consistent with other media in the
recipient's universe.

5. 5
WHY NATIVE?
• Native is inherently social
• Native ads boost purchase intent by 18% over normal display ads
• Large local, specific classified and regional advertisers are looking for
ways to extend engagement of their unique content
• eMarketer suggests Native advertising will be worth $4.57 billion in
2017 vs. display of $6.4 billion
Source: Forbes.com; Sharethrough.com; eMarketer

6. RE P UBLIC M E DIA
NATIVE ADVERTISING
OP P ORT UNIT IE S

7. 7
NATIVE ADVERTISING: REPUBLIC MEDIA OPPORTUNITIES
• Sponsor stories are provided by or created for an advertiser, are
engaging and journalistic in nature. These sponsor stories can appear
simultaneously on azcentral.com desktop, tablet, and mobile Web
platforms.
• Video native series is created by the advertiser or by azcentral’s
partner production team. This high-quality video format provides
advertisers opportunities to be both visually engaging and informative
when highlighting a program or service, turn a press conference into a
marketing piece or creating a news-brief style piece. Like sponsor
stories, a sponsor video series can appear simultaneously on
azcentral.com desktop, tablet, and mobile Web platforms.

8. EXAMPLE PAGES

9. 9
NATIVE DIGITAL OPPORTUNITY – EXAMPLE
Samplelayoutforillustrativepurposeonly.Subjecttochange.
MAIN PAGE ARTICLE PAGE
Sponsor tile - under
FEATURES section on the
main page*
Sponsor logo
Sponsor
attribution
Sponsor ad
*May appear on sub-section pages

10. 10
NATIVE ADVERTISING – MOBILE PLACEMENT EXAMPLE
• MOBILE PLACEMENTS
IN LINE WITH
ARTICLES
• CLICK THROUGH TO
ARTICLE PAGES

11. NAT IVE ADVE RT IS ING
BE NE FIT S

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NATIVE ADVERTISING: POSITIONS ADVERTISERS AS LEADING RESOURCES
AND TRUSTED EXPERTS
Highly targeted
content
distributed to a
large, engaged
local audience
at scale.
Associate with
trusted local
news and media
brand.
Allows
consumers to
interact with an
advertisers in a
less intrusive,
ultimately
positioning
advertisers as
an experts in
their fields
Drives
awareness and
engagement of
informative and
relevant, topic-
based content.

13. 13
NATIVE ADVERTISING: THE STATS
• Consumers looked at native ads 53% more
frequently than display ads.
Visually Engaging
• 25% more consumers were measured to look at
in-feed native ad placements (the most common
editorial native ad format) than display ad units.
Attention of the
Audience
• Native ads registered 18% higher lift in purchase
intent and 9% lift for brand affinity responses than
banner ads.Higher Brand Lift
• 32% of respondents said the native ad “is an ad I
would share with a friend or family member”
versus just 19% for display ads.Social Sharing
Source: Sharethrough.com & IPG Media Lab Study: Native Advertising Effectiveness

14. T IP S FOR E FFE CT IVE
NAT IVE ADVE RT IS ING

15. 15
NATIVE ADVERTISING: TIPS FOR EFFECTIVE NATIVE ADVERTISING
Republic Media’s goal with all native advertising is to maintain the integrity of the
editorial brand while creating content that is useful, creative and seamless with
traditional content. Here are our tips for effective native advertising:
• Unbiased and non-brand specific – provide context for issues that relate to
your product or company. Not product specific content.
• Evergreen – create articles that have the ability to live online for extended
periods. Seasonal and event related content is also good.
• Useful, entertaining, fascinating, etc. – serve the reader with valuable,
actionable information.
• Shareable – azcentral is made up of an audience of influencers. Our
readers like to be in the know and they like to share what they know with
their social circles. Therefore effective native content should be
“clickable” – with headlines and topics that command attention – and
shareable – content that inspires “word-of-mouth” distribution.

16. 16
NATIVE ADVERTISING: EMARKETER’S NATIVE ADVERTISING TIPS
FROM THE EXPERTS
• Be collaborative
“You really need to establish a collaborative process. I think a lot of companies perhaps give lip
service to that. But this is very different. You can’t sign an IO (Insertion Order), walk away and
look for the results report at the end. You really need to be engaged and flexible, and find things
throughout the process to make it magical.”
- Lee Nadler, MINI USA
• Be relevant
“Native advertising must be relevant and timely based on the environment dictated by an
audience, what the brand represents to that audience and the core pillars of the brand. It has to be
authentic not just for brand credibility but must represent an honest interaction with the consumer.
One can’t trick the consumer into engaging with something that was misrepresented. … The
content has to be quality and for the right audience at the right. … It’s really about having valuable
and interesting content.”
- Anna Bonfiglio, The Lincoln Motor Co.
• Be helpful
“Native isn’t about touting your latest product or service, although that could be a component of it,
but it has to be tied back to what the reader is going to take away from it. … It’s about being
helpful to the folks who are going to consume the content and walk away knowing something they
didn’t know before.”
- Matt Eaves, Cancer Treatment Centers of America
Source: eMarketer, “Native Advertising 12 Best Practices from Leading Marketers”
November 2014

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NATIVE ADVERTISING: EMARKETER’S NATIVE ADVERTISING TIPS
FROM THE EXPERTS (CONT’D)
• Be nimble
“We tie native to being agile and try to use a lot of signals in the marketplace. …For Huggies, we
look for celebrities and high-profile people for our Huggies messaging.
We know that Kate Middleton was probably going to have a second child soon. We didn’t know
exactly when, but we worked with a set of publishers to make an agreement that when that story
broke, we would be native with that content. We owned it for about a week maximum, then the
story fades.
- Chris Whalen, Kimberly-Clark
• Think like a publisher
“You have to step back from the brand you work on and put the publisher hat on. Look at your
[media] partners, think about their environment and how to contribute value to their community.”
- Sam Olstein, GE
• Select the right partner
“We’ve realized that one of the most important things is the selection of a partner. We’ve learned,
especially as we’ve worked in markets where the content marketing space is less developed, that
even though the partner has the right target audience they might not have the ability to do this in a
high quality way.”
- Jason Hill, GE
Source: eMarketer, “Native Advertising 12 Best Practices from Leading Marketers”
November 2014

18. 18
NATIVE ADVERTISING: EMARKETER’S NATIVE ADVERTISING TIPS
FROM THE EXPERTS (CONT’D)
• Be customer-centric
“It sounds trite, but the entire experience needs to be designed with the customer in mind. If the
content fails to be relevant for the customer at the very moment they are experiencing it, native
becomes spam.”
- Ed McLoughlin, HP
• Be credible
“Native content that works always has that element of credibility. The brand behind the content
needs to have an understandable role in bringing that content to the reader.”
- Steve Rubel, Edelman
• Be respectful
“The primary goal is to create something that drives consumption [of content], rather than
interrupting it. Be mindful of the presence of your brand or product has in the content itself, and
whether you need to increase it or decrease it to have the best chance of meeting objectives. …
Any content format can work as long as the brand has a credible voice. Think about a
conversation among friends --you’d only add your piece to the conversation if it was relevant,
topical and built upon points that had already been shared, otherwise you wouldn’t be welcome in
the conversation. … Fundamental advertising principles like frequency of exposure will have an
impact on the success of content programs.”
- Chris Paul, Edelman
Source: eMarketer, “Native Advertising 12 Best Practices from Leading Marketers”
November 2014

19. 19
NATIVE ADVERTISING: EMARKETER’S NATIVE ADVERTISING TIPS
FROM THE EXPERTS (CONT’D)
• Tell a good story
“The single best practice I would say is this is journalism. You are engaging in journalism on the
publisher’s site, or at least you should be. … People don’t want to read about your brand talking
about your brand. However, they are really interested to hear what you have to say from the point
of view of your expertise in the industry that they might work in or deal with every day. It’s thought
leadership, not promotional material. You have to lead with quality and know the reader’s time is
wildly valuable.”
- Stephanie Losee, Dell
• Be original
“Devising anything that is entertaining/informative and doesn’t follow a template. We shouldn’t
lose sight of the need to catch audiences’ eyes with something surprising. Sometimes long-form
work is the solution, sometimes a simple tweet can be just as effective.”
- Sebastian Tomich, The New York Times Co.
• Be authentic
“The point of a native advertising campaign is to integrate yourself into a conversation in an
authentic, real way. You have to stand behind it and believe it, and feel really good about it.”
- JR Badian, MasterCard
Source: eMarketer, “Native Advertising 12 Best Practices from Leading Marketers”
November 2014

20. INT E RE S T ING INDUS T RY
S T AT IS T ICS

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NATIVE ADVERTISING: INTERESTING INDUSTRY STATISTICS
Source: Purch, “2014 Native and Programmatic Advertising Trends: Survey of High Level
Ad Decision Makers” conducted by Advertiser Perceptions, June 12, 2014
0% 10% 20% 30% 40% 50% 60%
Engagement
Brand lift metrics
Sales/conversion metrics
Clickthrough rate (CTR)
Viral measures
Metrics Used to Measure the Performance of Native/Sponsored
Content* Advertising Campaigns by US Advertising Decision-
Makers, Feb 2014
% of respondents
Note: N=133 who are involved in native/sponsored content advertising
*content provided by a media company

22. 22
NATIVE ADVERTISING: INTERESTING INDUSTRY STATISTICS
Source: Socintel360 as cited in company blog, Sept 1, 2014
$1.5
$2.2
$3.2
$4.3
$5.7
$7.1
$8.8
45.5%
46.7%
34.4%
32.6%
24.6% 23.9%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
$8.0
$9.0
$10.0
2012 2013 2014 2015 2016 2017 2018
US Native Ad Spending, 2012-2018
billions and % change
Native ad spending % change