GET TO KNOW NATIVE FROM A PROGRAMMATIC PERSPECTIVE

GET TO KNOW NATIVE FROM A PROGRAMMATIC PERSPECTIVE

TABLE OF CONTENTS WHAT IS NATIVE? 3 WHAT DOES NATIVE LOOK LIKE? 4 HOW TO BUY NATIVE 6 HOW DOES NATIVE PROGRAMMATIC WORK? 8 REAL-TIME BIDDING (RTB) 9 WHY BUY NATIVE PROGRAMMATICALLY? 10 REACH, TRANSPARENCY, AND CONTROL 1 1 WHY PROGRAMMATIC WORKS 12 NATIVE AD BEST PRACTICES 13 THE CASE FOR GETTING STARTED WITH PROGRAMMATIC NATIVE TODAY 14 2

WHAT IS NATIVE? With the staggering growth of native advertising mobile native alone is predicted to account for $53 billion 1 in ad spend this year it can sometimes be difficult to remember just how new the format is to our industry. Let s start with the basics. What is native? Simply put, native advertising refers to ads that match the form of the content in the publication or app in which they appear. They can take many forms, from sponsored articles and videos to in-feed posts to search results. The critical thing that differentiates native ads from standard ads is that they match the form and function of the user experience and look the same as content that is native to the site. 1 Source: Mobile Native Advertising To Drive $53B In Ad Spend MediaPost 3

WHAT DOES NATIVE LOOK LIKE? Native ads blend into the consumer experience seamlessly and can provide relevant content that enhances the experience of users all around the web. There are even publishers who have opted to offer native placements exclusively, in order to maintain a more consistent user experience. As of Q4 2016, the IAB defines six core native ad units: 1 IN-FEED UNITS These are ads that appear front-and-center, inside a newsfeed or equivalent primary content on a website. These can be images, videos, advertorial articles, and other types of posts. 2 PAID SEARCH UNITS The results that sit atop and adjacent to organic search results on search engines often called paid search ads can be considered native ads, as well. 3 RECOMMENDATION WIDGETS Sites typically feature a section labeled You might also like or Recommended articles from around the web, featuring a number of links. The links in these sections are native ads. 4

4 PROMOTED CONTENT These ads are designed to fit seamlessly into the browsing experience and are presented to look identical to the products or services offered on a given site. 5 IN-AD UNITS In-Ad native fits into a standard ad container but features content that is contextually relevant to the site on which it appears. 6 CUSTOM [CAN T BE CONTAINED] This is a catch-all term for special ad formats that don t fit the other categories, like Tumblr Sponsored Day, a Yahoo Homepage takeover, or custom sponsored items within publications or applications. Getting Premium Performance From Native Advertisers often ask, how do we get premium performance from native? We ll dive into the benefits of buying programmatically in more detail, but one key strategy is to use the controls available in your programmatic buying platform to target the apps and publishers you want to run ads on and blacklist the ones you don t. Keep track of your metrics to identify which apps and publishers are delivering the results you re looking for. Double down on the ones where you re seeing good performance. 5

HOW TO BUY NATIVE Native performs exceptionally well, and it s growing at an explosive pace. Native is projected to account for 74% of all display ad revenue by 2021. 2 Want in? How can you get started? 2 Source: Native ads will drive 74% of all ad revenue by 2021 Business Insider How Does Native Perform? Advertisers in different verticals might find varying performance across different publisher types. 3 Publisher Top Advertiser Verticals Low Conversion High Conversion SPORTS Entertainment Tech/Telco Careers/ Education CPG GAMES APP CPG Travel Tech/Telco Entertainment MESSAGING Real Estate Travel Tech/Telco Health/Wellness TECHNOLOGY Auto Financial Services & Insurance Tech/Telco Entertainment WEB SHOPPING Tech/Telco Auto Financial Services & Insurance Travel NEWS & MAGAZINES Travel Financial Services & Insurance Auto Tech/Telco 3 Source: Yahoo performance analytics 6

Because of native s flexible nature, it may seem like the preferable, or exclusive, method to buy native impressions is through direct sales. While that may be true for some native units like customized sponsored articles or complete homepage takeovers the reality is that direct isn t the only way to buy native. DIRECT SALES This can seem like the obvious first choice. If you have a specific publication or app in mind, you will want to negotiate a direct deal with them. But there s more to it than targeting an individual site or group of visitors. When you want a completely custom experience, go directly to the publisher. PUBLISHER AD PLATFORMS Many publishers offer self-serve tools that enable advertisers to buy placements on their sites and apps like Yahoo Gemini. PROGRAMMATIC Programmatic buying unlocks the vast potential of intelligent, individually evaluated impression buying and applies it to the strengths of native. In-feed, recommendation widgets, and in-ad units can be bought and sold programmatically. 7

HOW DOES NATIVE PROGRAMMATIC WORK? By combining programmatic buying with native placements, publishers and advertisers can take advantage of the strongest performing tools in digital advertising today. Programmatic advertising uses data to evaluate buys on an individual basis, ensuring that each impression meets the needs of the buyer, from the identity of the viewer to the technical specifications of the placement. With the integration of native, marketers can get even more value from each impression. The Pieces of a Native Ad Some native ads units are composed of individual pieces of data which can be integrated automatically across publications and applications. The unit will have a set design that is applied to the ad s content, so the ad matches the form and function of the user experience. Native Ad Structure Headline Sponsored Thumbnail Image Brand Name/Logo Description 8

REAL-TIME BIDDING (RTB) RTB allows advertisers to set their price limits for what they want to pay for each individual impression. This flexibility, which is one of programmatic s core benefits, can help ensure that advertisers capture the maximum benefit from each individual impression and allow for the reallocation of funds to pursue more effective strategies. Native programmatic is enabled by OpenRTB 2.3, which expands the real-time bidding (RTB) specifications to include the various pieces of native ads along with the tools required to pass that data to ad servers. How Native is Delivered Programmatically 1 A user visits a site, and a request for an ad is made. 2 Advertisers use their demand-side platform (DSP) to bid on the impression request. 3 The exchange conducts the auction, selects the winning bid, and the DSP delivers the native ad s metadata to the publisher: Headline Description Text Brand Logo Content URL Thumbnail Brand Name 4 The publisher s system assembles the native ad to fit the placement and delivers the ad. 9

WHY BUY NATIVE PROGRAMMATICALLY? You may already know about the power of native, not only from this book, but also from the various white papers and analyst reports released over the past few years, showing the growth and impact of this ad format. However, buying native programmatically is a relatively new trend that offers advertisers some unique opportunities. Buying Programmatic Native The native ad units that can be bought programmatically: in-feed, recommendation widgets, and in-ad units. TARGETING Programmatic opens up rich targeting opportunities for advertisers. Demand-side platforms (DSPs) can allow ad buyers to reach people based on more detailed information than basic demographics. By using their own data alongside the DSP s data, as well as data from third-party sources, buyers are able to target people based on sites they ve visited, actions they ve taken, conversion events, device characteristics, location data, and more. DEALS Advertisers often want to limit their campaigns to specific publications and apps, but also want to take advantage of the reach and targeting of programmatic. Those buyers can purchase pre-negotiated packages of apps and sites and have their campaigns executed programmatically the best of both worlds. And while native deals are not yet prevalent across the industry, the growth of deals for both display and video inventory are good indicators that native deals are just around the corner. 10

REACH, TRANSPARENCY, AND CONTROL Programmatic gives digital advertisers unprecedented reach in their campaigns. With programmatic, a single campaign can target websites and mobile apps all around the world, locating impressions from users in a desired audience wherever and however they surf the web. Brands and advertisers need to know where their native ads are placed and be able to limit publications and apps as they desire. Buyers can avoid casting a wide net by using programmatic platforms that give greater visibility into their buys, often down to the individual URL or mobile app level. DSPs and Exchanges also offer tools that enable buyers to set blacklists for sites and apps they want to avoid displaying on or whitelists that allow them to choose the sites and apps where they do want to run their ads. Use your DSP to plan, report, and optimize performance. 11

WHY PROGRAMMATIC WORKS The blend of powerful targeting capabilities, superb reach, and buyer control makes programmatic the perfect partner for native advertising. And the coming-together of these ad technologies arrived at the right time, as publications begin to shift their available inventory to native. For instance, Yahoo has invested and integrated native advertising across more than 51% of Yahoo owned and operated supply. 4 With native integrated into the programmatic ecosystem, buyers only need to make adjustments to their creative and buying criteria to take advantage of the fused power of native and programmatic. 4 Source: AdWeek 2016: The Next Era of Programmatic presentation 12

NATIVE AD BEST PRACTICES Yahoo recently conducted an in-depth study on native ads, Creative Best Practices: Native Ads, using eye-tracking and surveys to determine native ad effectiveness. The study is detailed and informative and we hope it s helpful when you build your next native campaign but the short version of the findings can get you started on the right path: BEST PRACTICES 1 Use images that feature people, as they can drive engagement and fixation on both desktop and mobile. 2 Make sure your logo is visible and prominent. Larger logos deliver recall, action, and longer fixation across platforms. 3 Brand mentions, while not as powerful as logos, have a strong impact on performance. Include them in the headlines of your ads. 4 Ensure that you have a seamless mobile experience in place for the consumer post-click. When users engage, you want them to understand next steps easily. Buying Tip We ve found pricing for programmatic native is actually closer to video ecpms than display ecpms. When you re setting up your programmatic native campaigns, you may want to start with a higher bid and reduce as necessary to improve efficiency. As always, track your performance metrics to ensure you re getting value out of every buy. 13

THE CASE FOR GETTING STARTED WITH PROGRAMMATIC NATIVE TODAY Native s stellar performance is digital advertising s rising powerhouse. With programmatic technology behind them, ad campaigns can grow more efficient, more cost-effective, and drive stronger results for advertisers. Consumer response to native ads has been shown to be more positive than for other ad units. For example, a Yahoo study found that native experiences within premium environments can get 3X more attention, 55% stronger emotional response, and 23% higher quality ad perception. 5 Ad exchanges, like the BrightRoll Exchange, are offering native placements now. Take advantage of the opportunity and start your native campaign today. brightroll.com/contact 5 Source: Ad Environments: The Halo Effect Yahoo (PDF) 14 Copyright 2016 BrightRoll, Inc.