@PeterMinnium

Head of Brand Initiatives, IAB

Native

Advertising

Fact & Fiction

Native Advertising Is…The Tower of Native Advertising Babel

Sponsored Content

Read like edit

Non-interruptive

Unique & Proprietary

Organic to Experience

In content well

Branded Content

Behave like Edit

In User’s Stream

Look like edit

Non IAB-Standards

Ads via CMS

High Quality

PaidContent

Custom Content

New advertorials

IAB NATIVE ADVERTISING TASK FORCEFacebook, AARP, AddThis, adMarketplace, AdMonsters, AdsNative, Airpush, Altimeter Group,American Express, AOL, appssavvy, Autotrader.com, BBC Worldwide, BBN Networks, BlinkNew Media, Bloomberg, BuzzFeed, C.A.S.T., Demand Media, Dieste, Disqus, Dow Jones &Company, Drawbridge, Dstillery, Electronic Arts, Expedia, Facebook, Federated Media,Flipboard, Flite, Forbes.com, Foursquare, FOX Sports, Gawker, Glam, Glot0, Google, Gravity,GumGum, Hearst, IAB Canada, IDG, Inadco, InMobi, inPowered, IZEA, Jivox, Jun Group, Kargo,Klout, Kontera, LIN Media, LinkedIn, LocalResponse, Los Angeles Times, MailOnline,Mansueto Ventures, Martini Media, Mashable, Meredith, Microsoft Advertising, Mixpo,Modern Healthcare, Monster, Namo Media, NPR, National Public Media, Nativo, NetSeer,New York Daily News, Nexage, OneSpot, Outbrain, Pandora, PointRoll, Polar, PulsePoint,ReactX, Realtor.com, Rodale, Salesforce Marketing Cloud, SAY Media, Selectable Media,Shareaholic, ShareThis, Sharethrough, Spotify, Studio One, StumbleUpon, Taboola, BusinessInsider, Estee Lauder Companies, Huffington Post, New York Times, Weather Channel,Thomson-Reuters, ThoughtLeadr, Time Warner, Trip Advisor, TripleLift, Trulia, Tumblr, Turner,Unilever, Unruly, Vibrant Media, Vindico, Yahoo!, YouTube, Zillow, Zumobi, and Twitter

AdGhetto

In-Stream

Quality

Scale

Transparency

Aspiration

Ad Products

Native Aspiration

A paid ad that is so cohesive with the

page content, assimilated with the

design, and consistent with the user

experience that the viewer simply feels

that it belongs.

“Native” Ad Products

1. In Feed Ads

2. Custom

3. In-Ad (IAB Standard) Unit

4. Search Units

5. Recommended Content Units

6. Promoted Listings

In-Feed the “New News”

IAB Native Evaluation Framework

Disclosure is Not Negotiable

Digital Ad Ghetto is Dying

Already weakened by Mobile which never had an established ghetto and…

Large canvas formats (like IAB Rising Stars) which crossed the ghetto borders

Native is driving the last stake through its heart

Native is not a Fad It is turning point in maturation

of digital advertising

Ads in every media start as an awkward accompaniment– TV= Radio announcer on air

– Magazines=Back of book

– Newspaper=In text listings

Native is digital working through adolescence with permanent change and opportunity

Native does not Replace All Digital

Digital advertising expenditures are trifurcating to 3 buckets

Marketers using digital to achieve objectives across the purchase funnel

Native Content advertising is a complement to, not a replacement for, concept and commerce advertising

Concept Ads

Content Ads

Commerce Ads

Consumers Receptive to Native Ads

Today, nearly 9 in 10 (86%) consumers feel that online advertising is necessary to receive free content online

Additionally, 60% of consumers are more open to online ads that TELL A STORY than ones that simply sell a product

Consumers are Receptive to Native Ads

Q28: Have you seen this type of content before today?

71%

Business NewsEntertainment

Audiences Are Aware of Sponsored Content

Sponsored Content Awareness(Asked after exposure to examples)

have seen sponsored

content

61% 70%

have seen sponsored

content

have seen sponsored

content

Q34: Thinking specifically about this content, how much do you agree or disagree with the following? This content can add value to my experience on this website

Sponsored Content Can Add Value to the Consumer Experience

Sponsored Content Perceptions (% Agree)

38%

45% 44%

27%

Adds value to site experience

Overall Business Entertainment News

Increased Favorability of Website As a Result of In-feed Sponsored Content(% More Favorable)

54% 53% 52%

Content isrelevant to

reader

Brand is anauthority

Brand istrustworthy

Source: Getting In-Feed Sponsored Content Right: The Consumer View by IAB & Edelman Berland, July 2014

The Vogue Effect: Sponsored Content Can

Enhance Site Favorability

Q44: Thinking about the ways that brands can use this “sponsored” content to draw your interest, how important are each of the following?

Important Factors to Drawing Interest(% Important)

Brand Relevance, Authority & Trust Drive Consumers to Sponsored Content

89%84% 82%

91%83% 83%

90%

79% 79%

Relevant information Brand is an authority on topic Brand Iknow & trust

Business Entertainment NewsBrand relevant information

Be Relevant: Doing it Right

Be Relevant: Doing it Less Right

Be Authoritative: Doing It Right

Be Authoritative: Doing it Less Right

Content is King

Great Content is Easily Native—bad content can never be so

Should be additive, not Interruptive—brand is in-stream in someone else’s story

Brands setting direction & curating—content creation sources exploding

Engagement is Queen

Native advertising can kill the click thru rate

Success is much more nuanced and varied

The industry is coalescing around a core set of “engagement” metrics, like time spent and interactions

“NativeCTR”

Customization passes costs up and down the supply chain

True “native” should be rare, premium, and consultative

Standardized and semi-customized solutions, if done right, can drive value for marketers and publishers

A Final Caution: Beware Native Economics

@PeterMinnium

Head of Brand Initiatives, IAB

Grazie Mille