This document discusses native advertising and summarizes a presentation on the topic. It finds that: 1) Native advertising spending in the US is projected to grow substantially through 2017, outpacing display advertising spending growth. 2) Wall Street is excited about native advertising because it is embedded in fast growing areas like mobile, video, social media, and native formats. 3) While consumer time spent has shifted to mobile devices, advertising spending has not kept up, still focusing more on desktop. 4) Native ads have higher conversion rates and are more engaging and social than traditional banner ads. Many brands and agencies are adopting native ad formats. 5) Pricing for native advertising placements varies widely between

1. “Native Advertising – The Next
Frontier”
Presented by Nancy Lane,
President, LMA and Peter Conti,
Sales and Marketing Director, LMA

2. Social Native Advertising is on Fire
• Rick Ducey, Managing Director, BIA/Kelsey

3. “In April, 2013
BIA/Kelsey estimated
that native spending in
the context of US
social media
advertising would
climb to $4.57B in
2017, from $1.63B in
2012. In every year in
the forecast period,
native spending will
grow at a faster rate
than display
spending.”Source- “All Eyes on Native Advertising, Despite Uncertainties” – eMarketer, 05/16/13

4. Why Wall St. is Excited
• Ron Josey, Managing Director, Sr. Internet
Analyst, Equity Research, at JMP Securities

5. …Driven by Mobile, Video, Social, & Native
5
-20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%
Sponsorship
Lead Generation/E-mail
Classifieds / Auctions
Banner Ads
Rich Media
Search
Digital Video
Mobile
U.S. Online Advertising Spend Three-Year CAGR (2013-2016)
Mobile and Video are the fastest growing advertising
areas and Native Ads (as well as Social) are
embedded in them throughout
Source: JMP Securities

6. Yet The Market Is Still Catching Up To Mobile
6
42.2%
21.5% 20.9%
9.9%
5.4%
38.4%
24.8%
4.5%
12.2%
20.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
TV Digital (ex-
mobile)
Print Radio Mobile
2013 Consumer Time Vs. Ad Spend
Spend Time
Source: eMarketer

7. • Native Ads are naturally embedded into a sites content
stream and while clearly marked as an advertisement, they
are found to be more impactful than traditional banner ads.
7
So what is Native Advertising?
• Naturally embedded within content
• Are targeted and contextually relevant ads
• Deliver higher conversion rates
• And are perfectly suited for social and mobile
environments
Said another way -- Native Ads are:

8. 8
Mobile Native Ad examples
Source: Facebook, Twitter, Google
Facebook Twitter Google

9. 9
Yahoo!’s New Splash Ads & Pinterest’s Promoted Pins
Source: Pinterest, Yahoo!
Pinterest Promoted PinsYahoo! Splash Ad

10. 10
What Does The Data Say?

11. 11
Native Ads Have Higher Conversion Rates
Source: Yahoo!

12. 12
Native Ads are More Engaging...
Source: Sharethrough, IPG Media labs, 2013

13. 13
…More Social…
Source: Sharethrough, IPG Media labs, 2013

14. 14
…41% of Brands and 34% of Agencies are using Native
Ad formats
Source: Hexagram and Spada, 2014

15. 15
…With Awareness The Top Objective for Native Ads
Source: Sharethrough and eMarketer, September 2013

16. Pricing: Now a 7-Figure Biz for Deseret
Digital
• Todd Handy, VP, Digital Business Development
and Advertising Products, Deseret Digital
Media
• Rick Ducey, Managing Director, BIA/Kelsey

17. • Display is dying
– CPMs/CTRs↓
• Mobile is here
– real estate ↓, U/X ↓
• Demand is high
– brands need
platform & audience
• It’s incremental
inventory
– or, shove another ad
in the right rail
• Engagement is higher
– CTRs, time on page,
social sharing, etc. ↑
• $$$...
Why Native?

18. Source- “How Top Publishers Handle ‘Sponsored Content’” – Digiday, 06/14/2013
📍Buzzfeed- $100K for 4-5 listicles. As
low as $5K with minimum spend of
$50K.
📍Forbes- $50-75K/mo.,
minimum 3 months.
📍Quartz- $80-90 CPM.
📍Studio@Gawker-
$300K-500K, including
12-16 pieces. Individual
posts as low as $12K
with minimum spend of
$50K.
📍Business Insider- $5K
sponsored post, $15K
sponsored video.
📍HuffPo- $40K per post,
including 4 days’ site promotion
(20M impressions).

19. • Content Creation
• Homepage
Impressions
(headlines)
• Story Impressions
(articles)
• Social Impressions
(side door traffic)
• Social Actions
(Likes, Comments,
Shares)
• Article Actions
(Shares,
Comments)
• Engagement Time
• Story Completions
• Scroll Depth
• Display Ad CTRs
• Brand Lift
• Guarantees (?)
What Do I Charge
For?

20. $
$$
$$$$
$$$

21. Native Advertising Value
ChainBrand Strategy
Content
Strategy
Content
Creation
Publication
& Merch
Promote
Externally
Analytics &
Reporting
Understand
brand
message and
target
audience
Establish
goals and
metrics
Key brand
messages
Linkage to
publisher
content
Execution:
Headlines
Text
Images
Video
Scheduling
Multiple access
points
Relationship to
other content
Social media
Email
Content
distribution
partnerships
CTR to story
Content views
(Page views,
video views, etc)
Social shares
Test brand lift
and awareness
agency
publisher
promoter
integrated native publisher

23. Content Pricing

24. Distribution Pricing

25. Promotion Pricing

26. • Which services do you provide?
– Brand strategy, content strategy, content creation,
publication, promotion, distribution, amplification,
reporting & analytics?
• Which elements do you include?
– Site navigation, article(s), sponsor ‘section’, evergreen
content, 100% SOV of display ads
• Which platforms do you leverage?
– Desktop, mobile (smartphone and/or tablet), app?
• Which pricing model do you prefer?
– Sponsorship- less risk (both sides)
– CPM- higher risk (both sides)
• How does this fit within your rate card for other
digital products?
– Display ad parity?
– Recognition of value and ROI?
– What will the market bear?

27. Niche Opportunities
• Brandon Erlacher, Publisher, The Elkhart Truth

28. Concept & Strategy
 Niche Content Play: Food
 Geographical boundaries (574)
 Strengths
 Build off of Elkharttruth.com and Radio reach
 SEO play
 Same CMS
 Leverage packaging across brands
Huge differentiation advantage to publishers! Organic SEO and Trust…

29. Newspaper Food
Content & Flavor
 How does it work?
 All food content originates with Flavor
 Story lives on Flavor

30. Newspaper Food
Content & Flavor II
 How does it work?
 All food content originates with Flavor
 Food critic and blog live on Flavor
 Bylines in newspaper have Flavor
 Elkharttruth.com shares Flavor stories
via social
 SEO
 Larger audience, drive traffic
 Lends credibility
**Rule: We never post the same content on Flavor574.com and Elkharttruth.com
A digital asset only lives in one place. Link to it from other brands…

31. Other Items
 Have a dedicated seller, but also make packages
available to media reps
 User is first stakeholder. Quality content is key. Not
advertorial. Evergreen content. Native is a win/win. Think
Quality Score!
 Staff includes a Project Manager who reports to Creative
Services, a dedicated seller and shared reporting
resources with newsroom for those who are passionate
 Trusted, local, independent contractors (correspondents)
are used to create the native content

32. 0
100
200
300
400
500
600
700
800
900
1000
DESKTOP
MOBILE
TABLET
Flavor Traffic
(by Device and Time of Day)

33. Products
Cross-Selling
Newspaper
elkharttruth.com
Truth Radio
Events
Content Marketing (Native)
Sponsored Articles
*Video
*Audio
Digital Advertising
Display Email
*Pre-roll
Video
*Deals
Digital
Publication
• Google Play
• App Store
• Amazon

34. Content Examples

35. Digital Publication
 Published June 2014
 Quarterly
 Live Demo

36. Native. It is Here and it Works
INNOVATION MISSION 2014
699 Shares on Facebook in 24 hours – case study
from The Elkhart Truth

37. Content That Sparks Engagement
• David Arkin, VP of Content, GateHouse Media,
Inc.

38. • Local coverage that’s smart, informative and fun
and fast online and deep in print
• Enterprise and watchdog work that tells me
something I didn’t know and breaks ground
• Reader engagement that connects audiences with
our journalism and journalists and makes the reader
part of our products
OUR CONTENT STRATEGY
ENTERPRISING | ENGAGING | ENTERTAINING | ENLIGHTENING

39. Three over-arching content goals
1 Making readers smarter: This is the water cooler question: Does this story,
website, front page make me smarter? Do I know something interesting to share?
2 Connecting emotionally: People take action when you touch their emotions.
They are more likely to share the story if they have laughed, cried, felt indignant …
felt something.
3 Offering solutions: Readers have always wanted something more than gloom &
doom. Does this story challenge leaders to look for solutions, instead of just
reporting problems? Does it help them find a solution to make their family life, their
weekend life better?
OUR CONTENT STRATEGY
ENTERPRISING | ENGAGING | ENTERTAINING | ENLIGHTENING

40. BuzzFeed’s model
• Three ways they try to connect with
audiences: Bored in line, at work and
at home
• 3 things determine if they will do a
story:
— This expresses my identity
— This made me feel “x,” I want you
to feel “x”
— This supports a view I already
have
ANOTHER STRATEGY
ENTERPRISING | ENGAGING | ENTERTAINING | ENLIGHTENING
Whatever your strategy, have a goal, a criteria; don’t just blindly cover stuff

41. LOTS OF CHOICES
ENTERPRISING | ENGAGING | ENTERTAINING | ENLIGHTENING
• Press releases
• Articles
• Blogs
• Guest blogs
• eBooks
• Newsletters
• White papers
• Media
partnerships
• Photo galleries
• Video
• Audio
• Podcasts
• Playlists
• Email marketing
• User Generated
• Q&A’s
• Surveys
• Infographics
• Social media posts
• Slide shows
• Customer testimonials
• Product reviews
Content can include everything from business profiles to trend pieces –
key is to be aligned with advertiser’s brand strategy

42. What’s great native content?
• In tune with people's lives, what they're thinking about now
• Answers questions
• Provides information
• Provides entertainment, an escape
• Touches people's emotions
• Connects with categories that are critical to their everyday lives
Food, home, health, education, auto, doing stuff
NATIVE ADVERTISING
ENTERPRISING | ENGAGING | ENTERTAINING | ENLIGHTENING

43. GOOD CONTENT
ENTERPRISING | ENGAGING | ENTERTAINING | ENLIGHTENING

44. GOOD CONTENT
ENTERPRISING | ENGAGING | ENTERTAINING | ENLIGHTENING

45. GOOD CONTENT
ENTERPRISING | ENGAGING | ENTERTAINING | ENLIGHTENING

46. GOOD CONTENT
ENTERPRISING | ENGAGING | ENTERTAINING | ENLIGHTENING

47. GOOD CONTENT
ENTERPRISING | ENGAGING | ENTERTAINING | ENLIGHTENING

48. What makes bad content
• Thinking that it's easy, it isn't a "real story," not taking it seriously
• Content that isn't tied into events, seasons, product launches
• It isn't tied into SEO, keywords
• It tells people to buy a product
• It doesn't offer information readers can use in everyday life
— Guardian
NATIVE ADVERTISING
ENTERPRISING | ENGAGING | ENTERTAINING | ENLIGHTENING

49. What should you do?
• Establish a focus for your brands: Articles, social posts, their sites, your sites
• Content should meet the standards that your newsroom has for its news reports
• Produce interesting content and get beyond the business profile and Q&A; this
isn’t advertorial
• Work with great companies that can help you do this; you’re not alone
• Have fun! This is an exciting new place you should own!
NATIVE ADVERTISING
ENTERPRISING | ENGAGING | ENTERTAINING | ENLIGHTENING

50. Categories and How Companies Are
Implementing Campaigns
• Katie Wilson, Digital Advertising Director, QCT
Media Group (Lee Enterprises)

51. Native Advertising
• Quad-City Times pitch
• Key Learnings from BMTN
• Top Targets
• Key Benefits
Katie Wilson
katie@speakable.me

52. • Position your business as the expert in your industry through informational
articles sponsored by you
• We write the articles, it is not an advertorial, that can run in both online
and print
• The online portion runs as an article through the homepage of our website
and under another appropriate heading (ie., Health and Fitness)
• Clicks through to its own article pages with links back to your website
• The content is written keyword heavy to be SEO friendly
• Article remains archived on qctimes.com for a minimum of one year
• We will also provide suggested social posts for you to put on Facebook,
Twitter and Pinterest to help drive traffic
• Simply put- it’s an article that resembles a staff reporter’s work (making it
“native”), but it’s actually content written for an ad sponsor.
Native Advertising

53. Print Example

54. Online Positioning

55. Article Page

56. 12x 6x 4x
Online Article Only $1,000 $1,300 $1,500
Online Article & Print* $1,500 $2,000 $2,300
Additional Options
Social 1x $150
Slideshow (pics) 1x $375
Video 1x $500
Social Includes*
2 Facebook posts
2 Twitter posts
1 Pinterest posts
*provided for you to post on your businesses social networks
Native Advertising Rates

57. 5
7
Content ClicksArticle Posts
BringMeTheNews—Key Learnings
Rick Kupchella’s BringMeTheNews.com June 2014 Study

58. • Food content: Food made up only 6% of posts, but 28% of
clicks. This establishes the opportunity to advance more food
content which the consumer is most interested in.
• Better targeted outdoors & sports: 23% of posts were
outdoors and sports, but made up just 14% of clicks.
• Content Considerations: Consider publishing fewer “guide”
category posts. These posts made up 29% of content
published, but only 18% of clicks received.
BringMeTheNews—Key Learnings
Rick Kupchella’s BringMeTheNews.com June 2014 Study

59. • Automotive
• Bridal/Jewelry
• Entertainment/Food
• Financial Services
• Grocery
• Health Care and Fitness
• House and Garden
• Lawyers
• Real Estate
Top Advertising Categories/Targets

60. • Credibility of Native Ads: The trust and authority of the newspaper
washes over the advertiser
• Authoritative: Positions the advertiser as the opinion leader in your
community for his/her category of business
• Flexible: Article can appear in print and online
• Impactful: Online article appears on home page as part of the news
• Direct: Online article links to the advertiser’s site
• SEO Friendly: Articles emphasize keywords important to the
advertiser’s rank in organic search
• Long-lasting: Articles remain in archive for a full year
Key Benefits

61. Categories and How Companies Are
Implementing Campaigns
• Jay Small, President, Informed Interactive,

62. Nativeadvertisingprograms
• ‘Entry ads’ on index pages let search engines
follow links
• Native ad article pages typically include text,
images, sometimes video
– Disclaimers and labels
• Writing style informational, with ‘soft’
reference to client as source
• Local properties set pricing, exclusivity

67. Analytics: Measure the Right Things
• Todd Handy, VP, Digital Business Development
and Advertising Products, Deseret Digital
Media

68. Native Advertising Value
ChainBrand Strategy
Content
Strategy
Content
Creation
Publication
& Merch
Promote
Externally
Analytics &
Reporting
Understand
brand
message and
target
audience
Establish
goals and
metrics
Key brand
messages
Linkage to
publisher
content
Execution:
Headlines
Text
Images
Video
Scheduling
Multiple access
points
Relationship to
other content
Social media
Email
Content
distribution
partnerships
CTR to story
Content views
(Page views,
video views, etc)
Social shares
Test brand lift
and awareness
agency
publisher
promoter
integrated native publisher

69. Source- “A Crisis of Confidence- The State of Content Marketing Measurement.” – Contently,

70. Source- “A Crisis of Confidence- The State of Content Marketing Measurement.” – Contently,

71. “20 native advertising
benchmarks for premium
http://polar.me/benchmarks

77. Native Advertising!

79. Omniture DFP CMS Finance

86. • Which metrics did you sell?
– Headline impressions, article impressions, shares,
social and article activity, side-door traffic, display
ad impressions/SOV/CTRs, etc.?
• Which metrics can you measure (right now)?
• Which partner(s) can you work with?
– Omniture, Google Analytics, DFP, ChartBeat,
Polar, Nativo, DistroScale, Publish2, etc.
• Which platforms are you leveraging?
– Desktop, mobile (smartphone and/or tablet), app
will all have different engagement and be
informative/directional.
• What does all of this measurement tell you
and your advertisers? How can it improve
your native advertising?

87. Thanks!
Nancy.Lane@localmedia.org
Peter.Conti@localmedia.org
Localmedia.org
#localmediaassoc