This document provides an overview of native advertising. It begins with a definition and history of native advertising, explaining how it is integrated advertising content designed to look like normal site content. It then discusses the types of native advertising units and provides examples. The document notes that native advertising is growing as consumers prefer valuable content over interruptive ads. It concludes by outlining the benefits of native advertising for advertisers, such as higher brand engagement and intent to purchase.

1. 1
native advertising
the guide to
©2014
Houston Chronicle Media Group
Chron.com / info@chron.com

2. 2
“There is a renaissance underway in digital advertising
that is driving brands, publishers and consumers to
communicate with each other in more personal and
natural ways. Native advertising is an important piece
of this evaluation.”
- Patrick Albano, Yahoo

3. 3
What is Native Advertising?
History of Native Advertising
Types of Native Advertising
Native Advertising Going Forward
Chron.com Native Options
04
09
12
14
15

4. 4
A
dvertising is constantly adapting
in order to reach audiences
in new ways. In an evolving
marketplace where different types of
content and media are integrated in to our
daily lives, the need for advertistements
in the form of content that provide value
alongside the content we’re already
choosing becomes paramount.
N ative advertising has emerged
both as an exciting new way
for digital marketers to engage
with the consumer, and as a new source
of advertising revenue for publishers.
Older formats of display advertising live
in the margins and compete with each
other for the user’s attention. However,
native advertising is unique in that it lives
within the space where users are already
consuming online content. It prevails by
providing something of value to the user
experience in the form of entertainment,
information or meaningful insights while still
offering a product, service or point of view.
Native Ads
Are Viewed
More than
banner ads2
53%
DesktopNativeAd
MobileNativeAd
1. Dedicated Media - The Power of Native Advertising http://www.dedicatedmedia.com/articles/the-power-of-native-advertising

5. 5
are contextually relevant, fully branded
custom content that are integrated
seamlessly into the overall design of
the host site so that
they look and feel
like a part of the
publisher’s editorial
stream.
Unlike traditional
forms of display advertising, a native
ad does not sit in a banner placement
or as an overlay that interrupts the site,
Native Advertisements
but is rather highly targeted and
delivered into the flow of the user’s
experience in a user-initiated, non-
interruptive way.
It is important to note that native
ads do not attempt to blur the lines
between editorial and advertising.
The publisher and advertiser
must clearly label the ad unit as a
branded or sponsored message
and the consumer should be able to
distinguish between paid advertising
and editorial content.
“[It’s] a form of paid
media where the ad
experience follows
the natural form
and function of the
user experience in
which it is placed.”3
3. Sharethrough CEO Dan Greenberg

6. 6
Form
Is the
advertisement
consistent with the
overall design of
the page that it is
on? How well is it
integrated into the
viewer’s activity
stream
Function
Is the function of
the ad consistent
with placements
similar to its content
type? How well
does it evoke a
similar experience
to comparable
content?
Integration
Is the ad integrated
well-enough into
the page, that it
blends into its
surroundings?
Buying &
Targeting
Is the ad being
bought exclusively
for a website, or for
a network of sites,
and how does
that align with its
available targeting
options?
Measurement
What kind of data
is available for
measuring the
ad’s success?
Disclosure
Is the
advertisement
being properly
disclosed to
viewers as paid for
content?
Source: All info from HubShout - What is Native Adverticing and How Does It Impact Consumers?
http://hubshout.com/?What-is-Native-Advertising-and-How-Does-It-Impact-Consumers-A-Statistical-Survey&AID=1178
before
considering
native
advertising.
The
Interactive
Advertising
Bureau
identifies
native
advertising
by using
the
following
questions:
Ask
Yourself

7. 7
According to Flite.com, the reason top
publishers are turning to native advertising
is because it “allows advertisers to use
publisher brand equity and audience to
influence advertiser brand perception.”4
This has a powerful effect of stimulating
a higher level of engagement while
maintaining trust between user and brand.
By changing their messages from
unwelcome interruptions to a natural,
integral part of how people consume
information, advertisers can deliver high-
quality articles that feel more like featured
stories. This offers brands the opportunity
to interact and engage with consumers
in the online places where they are
already spending most of their time while
genuinely improving the user experience.
Since native ads are user initiated, users
opt to engage with editorial content that
is generally just as compelling as the rest
of the site’s content and actually holds
value with them. Ultimately, this interaction
results in stronger consumer/brand
relationships, increasing brand affinity.
Furthermore, the transparent disclosure
of the sponsored post garners trust
between the publisher/advertiser and the
consumer. Consumers don’t seem to care
one way or another if the content they are
viewing is sponsored or not, as long as
brands continue to publish content that is
interesting and entertaining.
Content Drives
Interaction Between
User &Brand
4. Flite.com - 9 Examples of native Advertising
http://www.flite.com/downloads/Flite-Native-Ads_eBook.pdf

8. 8
Native advertising has deep roots in all forms of
modern media. Although it is a groundbreaking
approach to digital advertising, it is not a new
concept but rather it is being transformed into the
digital space. From the newspaper and magazine
advertorial to paid programming/infomercials on
broadcast TV and sponsored radio broadcasts,
sponsored content can be found throughout the
history of media.
Most web users are very familiar with the
sponsored search results that appear on the
top and right sides of Google, Bing and Yahoo!
search results pages, which were arguably the
very first form of native advertising online.
Social networks such as Facebook, Instagram
and Twitter have since followed suit by creating
native advertising platforms that allow advertisers
to reach their customers in a much less obtrusive
way by offering content that is relevant to the
user within the normal stream of content that was
previously generated by their friends.
Consumers are increasingly turned off by
traditional interruptive ad experiences such
as banners, boxes, buttons and pop-ups,
ignoring 99.8% of the ads displayed to them
online.5
Therefore, it is imperative that branded
content remain consistently integrated with
the user experience and visual design of a
publisher’s site.
Additionally, with the advent of mobile devices
where traditional display advertising is
incompatible, technology has called for a more
robust, scalable medium that is also content
driven in a format and style that consumers
find acceptable.
“The future of digital marketing is going to be
native,” says Forbes Insights. This is because
it offers brands the opportunity to captivate
their target audience and make them want
to find out more. Forbes Insights goes on to
say, “creativity is evolving alongside the native
medium [and] together they are producing a
new, direct way for brands to connect and
entertain audiences across the web.”6
history of
Native Advertising
5. Solve Media - Native Advertising In Context http://news.solvemedia.com/post/37787487410/native-advertising-in-context-infographic
6. Forbes Insights in association with Sharethrough – Going Native http://www.sharethrough.com/wp-content/uploads/2014/03/ForbesInsights_
Sharethrough_GoingNative.pdf

9. 9
Interruptive and more integrated with the user
experience – “Advertisers and publishers aspire
to deliver paid ads that are so cohesive with the
page content, assimilated into the design, and
consistent with the platform behavior that the
viewer simply feels that they belong.”7
7. IAB - The Native Advertising Playbook http://www.iab.net/media/file/IAB-Native-Advertising-Playbook2.pdf
there are two traits
common to all native ads
Aim to be Less
A statement which indicates that the native
ad is content that has been paid for by an
advertiser. Common language includes
“sponsored content,” “promoted content,”
“advertisement,” etc.
Disclosure Language

10. 10
Paid Search Units
Paid search ads are promoted direct-response
ads that appear along with search results.
These ads are presented in a format and layout
similar to organic results, except that they are
indicated to be sponsored.
The Interactive Advertising Bureau defines
six core types of native ad units in its
“Native Advertising Playbook”
In-Feed Units
In feed-ads can take on two forms:
1. Sponsored articles/content – comprised
of sponsored content that simply mirrors
the form and function of other content
available in a feed
2. In-feed promotions – appear in-stream,
but instead of being “content ads” they
focus on direct response and link to
content off of the site.
Types of Native Advertising
Forbes Yahoo Facebook Yahoo Google Bing

11. 11
Recommendation Widgets
Recommendation widgets allow sites to
monetize their traffic by recommending
content via a widget. Advertisers can then
spend to have a preview of their content
featured in these widgets. One big difference
in this category is that many of the other
native ad units mimic surrounding content for
a more native feel. Recommendation widgets
take the opposite approach—they tend to
always look the same, even from site to site.
The native experience for these widgets then
comes from the consistent user experience
across many sites, which allows them to still
blend in to some degree.
Promoted Listings
Promoted listings are a type of direct response
ad that matches the browsing experience that is
somewhat similar to in-feed promotions and paid
search ads. These ads have their own category
because they are found on sites that do not have
traditional editorial content. The native product
promotion on shopping sites like Etsy and
Amazon are examples of this type of native ad.
Types of Native Advertising continued...
Taboola Disqus Gravity Etsy amazon Google

12. 12
Types of Native Advertising continued...
In-Ad with Native Element Units
Some native ads are simply too specific to a
platform to be contained in a group. These ads
are obviously native, but are too custom to be
contained in one of the above types. Examples
include Spotify and Pandora’s sponsored
playlists, as well as Flipboard’s signature native
ads. As the industry evolves, new native ad
categories will likely emerge from the most
prevalent in this bunch.
Custom or “Can’t Be Contained”
These are native ads that do not fit neatly
within any of the above groups. They are
simply too platform-specific and too custom
to be contained in any category. Custom
platforms such as Spotify and Pandora
playlists, Tumblr and Flipboard are some
examples of native ads that “can’t be
contained.”
EA Martini
Media
Onespot hearst spotify pandora
Images and Examples from IAB - Native Advertising Playbook http://www.iab.net/media/file/IAB-Native-Advertising-Playbook2.pdf All other info from
Flite.com - The Six Core Types of Native Ads http://blog.flite.com/home/2014/3/25/the-six-core-types-of-native-ads#.VBM1nMJdWZI

13. 13
Native advertising is the newest evolution in online marketing and it is clearly here to stay.
Native benefits both advertisers and consumers alike, helping to form a different kind of
relationship between the two that is more mutually beneficial than traditional forms of display
advertising.
Consumers looked at sponsored content 53 percent more frequently than banner ads. Native
ads generated 9 percent higher brand affinity lift and 18 percent higher purchase intent
response than banners.8
Advertisements are no longer locked solely in the right rail or leaderboard ad spaces of the
publisher’s website and can now be integrated into the user’s natural activity stream of content.
Users are 67.2% more willing to click on and interact with sponsored articles than banner ads9
because they actually provide the user with valuable content that is entertaining, informative or
in tune with their daily lives.
Native Advertising Going Forward
8. IPG Media Lab and Sharethrough http://www.sharethrough.com/2013/05/infographic-native-advertising-effectiveness-study-by-ipg-media-labs/
9. HubShout - What is Native Advertising and How Does It Impact Consumers? http://hubshout.com/?What-is-Native-Advertising-and-How-Does-It-
Impact-Consumers-A-Statistical-Survey&AID=1178

14. 14
In tune with people’s lives, what they’re thinking about now
• Answers questions
• Provides information
• Provides entertainment….an escape
• Touches people’s emotions….positive or negative. Be bold!
• Connects with categories that are critical to their everyday lives
• Food, home, health, education, auto, and doing stuff
What is Valueable Native Content?

15. 15
Creatively placed articles on relevant websites with high value content
will help to make more customers aware of the products and services
offered by the brand that is sponsoring the article. This increases brand
awareness while helping to generate leads at the top of the traditional
sales funnel as well as helping to convert existing and new customers
at the bottom of the sales funnel.
Most publications have begun or are planning to offer native advertising
on their digital site, proving that the trend is being increasingly
integrated into brands’ overall marketing efforts. Moreover, 70% of
internet users say that they would rather learn about products through
content rather than through traditional advertisements10
, solidifying
native advertising as a revolutionary marketing strategy that will
continue to be a crucial part of an advertiser’s marketing plan for the
foreseeable future.
what is
Valueable Native Content?
10. MDG Advertising http://www.mdgadvertising.com/blog/the-shift-to-native-advertising-in-marketing-infographic/

16. 16
Higher Brand Engagement - 70% of consumers prefer to learn about
products through content, spending on average 3x the average TV commercial
with the content in native ads and your brand
Higher Click Through Rates - Increase response rates by up to 30x
including sharing of your native program via social media for a multiplier effect
Higher Intent to Purchase - Consumers who view your native
advertising have a 53% higher intent to purchase your goods or services
How does native advertising
benefit advertisers?
Sources: MDG Advertising http://www.mdgadvertising.com/blog/the-shift-to-native-advertising-in-marketing-infographic/ Dedicated Media The
Power of Native Advertising http://www.dedicatedmedia.com/articles/the-power-of-native-advertising IPG Media Lab & Sharethrough http://
www.iab.net/media/file/Sharethrough-IPG-Infographic-11x17-CMYK_nobleeds.pdf

17. 17
Designed to give your brand maximum
exposure, Hearst premium native
advertising program places your
sponsored message where the most
consumers enter the site. Placements
are located on the Homepage
immediately below the breaking news
story of the day, as well as available on
Desktop and Mobile.
Advertisers can target consumers
engaged with specific categories of
content or across our national network
of 1600 sites with the Hearst Premium
Native Advertising Program.
Chron’s Native Offerings

18. 18
Pricing and Metric Strategies
CPM
Cost per thousand impression is a common currency but doesn’t capture the
key value point of social native advertising of social “shares” and quality of
impressions (accidental click versus reading article, sharing with friends).
Sponsorships
Pricing is more of an art than science. It is value-based pricing but may end up
with higher CPMs vs other pricing models and it may not be sustainable.
Bundling
Value-based pricing but if it is used effectively can achieve client goals by
matching inventory to consumer purchase journey stage in the sales funnel.
Are you looking to brainstorm ideas on your native advertising campaign?
Contact the experts at Houston Chronicle Media Group
marketing@chron.com 713-489-1415
Chron’s Native Advertising