Incorporating Native Advertising into News Products As publishers and advertisers look for new ways to reach consumers and generate revenue, native advertising, also known as integrated or sponsored content, has grown in popularity and has been added to the menu of options offered by many news media organizations. Advertising sales representatives are pleased to be able to offer native advertising to their clients as an innovative and unique way of engaging with a greater number of consumers. However, the editorial side of the news media organization may feel differently. There is concern that native advertising could pose potential ethical dilemmas if readers were unknowingly enticed into reading an ad thinking that it was editorial content. If that were to occur, would it compromise the credibility of the news media organization and its associated products? Through the implementation of a sound business development strategy, open communications and clearly established guidelines, native advertising can offer news media organizations a profitable new stream of revenue generation, and alleviate the concerns of those who worry about blurring the lines between editorial and sales. What is native advertising? Native advertising is non-disruptive sponsored content, relevant to the consumer experience, which looks and feels similar to its editorial environment. Paid content takes the same form and qualities of a publisher’s original content, and is displayed alongside other content in a similar format, matching both form and function. It is labeled clearly to associate the advertiser with the content. Sponsored content should be educational, informative and engaging to consumers so that it increases their likelihood of reading, watching and sharing the information with others. It can be done in print, online or mobile, but most news media organizations are currently delivering the content online. Native advertising is more about aligning a company’s culture and establishing a relationship with the consumer, than it is about the hard sell. Its goal is to favorably influence the perception of the advertiser. To be non-disruptive and relevant, native ads should appear within the context of the readers’ interest. News media organizations should consider the key factors that drive consumers to a particular product, page or section, and align the content and position of the native ad to be complementary. To illustrate this point, if the sponsor’s logo was removed from the native ad, the content should be so cohesive that it would still be able to live on the page from both an editorial and design perspective. When content is non-intrusive and high-quality, native ads are viewed as being beneficial to the reader experience because they are useful, entertaining and authentic. Transparency is critical with native advertising. It is essential that native ads be clearly labeled as such. Without this, there is the potential to destroy the customer’s faith and trust in your news media organization, and therefore, devalue the associated content as a highly valuable marketing currency. Some examples of labeling options include sponsored by, promoted by, content from, branded content, suggested for you, brought to you by, paid post, advertorial and native advertising.

Why offer native advertising? Native advertising is a lucrative revenue-generating opportunity for news media organizations, with 62% of online publishers already using/offering native advertising. A report issued by Business Insider indicates that 66% of advertising agencies, and 64% of marketers, intend to spend money on native ads in the next six months. Seventyfour percent of brands plan to increase their native ad spend this year. Media buyers are looking for a content marketing option that can perform better than traditional ads, and native advertising can be a possible solution. Since people come to news media outlets to learn and be entertained, brands can better reach this audience with sponsored content that offers these same attributes, rather than with a display ad that simply tries to sell a product. Studies show that native ad content is viewed for the same amount of time as editorial content, making it desirable to both advertisers and consumers. Most ad agencies do not have the skill set in-house to produce great native advertising on their own, so the opportunity exists for news media organizations to use the talent of its writers to produce content that helps to meet the needs of the agencies’ clients, and generates non-traditional revenue. Because of the unique and desirable properties associated with native advertising, sponsored content on a premium news media platform commands a higher price than traditional advertising. In addition, advertisers who sponsor content may choose to purchase additional display ad positions on a printed or website page, to reinforce their brand identity and push a more direct-response message to complement the soft-sell approach of the sponsored content. Implementing native advertising News media organizations that want to offer native advertising should strategically select the business model that is appropriate for them, based on staff resources, advertiser needs, ethical principles and revenue potential. There is no one-size-fits-all solution. Some options include: • •

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Underwriting model – the advertiser sponsors content attached to normal reporting, or something that the publisher was creating anyway. This model preserves the most editorial independence. Agency model – a publisher employs specialized writers and editors to help create custom content in partnership with an advertiser. The specialists balance the advertiser’s goals with their own understanding of how to create engaging content, to make something that serves everyone’s needs. Platform model – a publisher provides a dedicated space for brands to publish their own messages in their own name. The publisher has little direct involvement in the content. Here, the brand is paying for access to a publisher’s platform to access its audience. Aggregated/repurposed model – a publisher offers advertisers the right to use archived journalism in a new package that serves a sponsor’s interest.

Since the sponsored content will carry the trust and reputation of your news media brand, it is crucial to establish standards that detail the process for handling native advertising, so each piece is not left to varying degrees of inspection or care. These may include: • •

Editorial integrity must not be compromised by advertiser influence. Content should stand on its own regardless of who produced it or why.

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The difference between editorial content and marketing messages must be transparent. Native advertising should be prominently labeled as such. Native advertising can further be offset from the regular page by using an off-color background or a different font.

Innovation is key to native advertising execution. Native ad placement has to be more than simply moving an ad around on a page – it must strategically align with the other content on the page to be truly effective. Take the time to determine how and where native ads will work best on your newspaper’s platforms. The most pioneering news media organizations support a strong relationship between advertising and editorial. The artificial barrier between the two groups doesn’t have to remain in place in order to preserve the trust and integrity of the news media organization associated with executing a native advertising initiative. Editorial can assist with developing creative ideas and solutions for advertisers. Encourage the flow of thoughts, and an open line of communication, between both sides. A sales staff dedicated to native advertising is optimal, but when that is not possible, all advertising personnel should be trained to identify leads and develop a content strategy to match the advertiser’s value with the customers’ needs. Enlist the help of the editorial department to determine what can be written on the advertiser’s behalf. Articles, “Top five” lists, blog posts, photos and videos are all valuable native advertising tools – particularly if they include a “click here” offer for a deliverable, such as a white paper. Some news media organizations have established an in-house content studio that produces native ads. Using the experience and talent of on-staff trained journalists, the newsroom is formally, or informally, divided in two - the brand/commercial newsroom and the editorial newsroom. The brand newsroom advises advertisers who want to create their own content, and produces content for those who don’t. This arrangement draws upon the core strengths of the news media organization by leveraging its storytelling ability to help advertisers connect with consumers in a more meaningful way. The editorial newsroom continues to conduct investigative journalism, and is not responsible for preparing stories on behalf of sponsors they might have to cover in the course of their day-to-day work. Smaller news media organizations with limited resources can enlist the help of qualified freelancers to write sponsored content. Choose skilled journalists rather than copywriters to craft a well-executed product. Producing effective native advertising follows many of the same guidelines as writing a good story – with special emphasis on the following: • • • • • •

Find and develop the story – even for the smallest of advertisers. How did they get into the business? Where are they from? What techniques and practices do they use, etc.? Produce great content that people will want to share, and be sure to enable content sharing tools. Be educational and entertaining. Provide useful information and tips. Update content on a frequent basis. Prepare lots of material in advance and release it when appropriate.

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Be sure the ad is complementary to the other elements on the page and fits with the overall page design. A dry story can be made more interesting with the use of photos.

When the sponsored content is created and approved, engage the help of others from inside the organization who can provide SEO optimization and integrate the native ad onto the appropriate platform. Most publishers and advertisers view traffic and social media sharing as the key metrics to measure the success of native advertising. Story impressions (the number of times a story has been viewed), story reads (the number of people who have read the story), engagement (time spent on the story), speed of scrolling and display ad impressions are popular units of measurement. Native advertising can be sold as a standalone product, priced at a premium, or as part of a larger advertising plan that includes multiple touch-points like print, banners and mobile. It is recommended that news media organizations secure a long-term contract with native advertising clients to ensure enough time and exposure for the initiative to yield measurable results. Native advertising tips for marketers Advertisers want to engage with consumers by having their marketing message stand out from the crowd. In today’s fragmented media environment, it has become increasingly difficult to do so. Native advertising offers marketers a unique opportunity to break through the clutter and be noticed. When executed properly, native advertising delivers a more relevant message that increases consumer engagement and generates awareness or buzz. Consumers who click on native ads have higher purchase intent and higher brand loyalty than those who click on banner ads. Fifty-two percent of those who clicked on a native ad have the intent to purchase compared to just 34% of those who clicked on a banner ad. Similarly, 32% of native ad viewers indicate that they have higher brand favorability compared to just 23% of those who viewed a banner ad. To maximize the effectiveness of a native advertising campaign, suggest to your advertisers that they follow these simple rules: • • •

Avoid marketing-speak in native advertising. It’s more important to talk in a genuine or authentic way to build a relationship with the reader. It’s not an avenue for hard-sell. Don’t talk about yourself too much – people will turn away. Talk about something that’s interesting and fun, and someone might be more open to hearing more about you. Don’t sell. The content needs to be educational, informational, helpful or interesting.

The future of native advertising Where is native advertising headed? In its State of Native Advertising 2014 study, Hexagram and Spada reports that a large percentage of publishers and brands plan to use/offer native advertising in the near future. Forty-eight percent of publishers that don’t currently offer it, plan to do so in the next year. Similarly, 36% of brands that don’t currently use native advertising say they plan to do so within the next year. Forty-seven percent of advertising agencies said that they would offer native advertising when asked for the service by a client, with an additional 20% planning to offer it within the year, regardless.

The same study found that native ads within mobile apps will be an area of growth as progress is made on better integration with other platforms, and readers can expect better targeting of products to consumers overall. Inventory will need to be optimized for varying forms of mobile (across form factors, across different devices) moving forward. The Federal Trade Commission has given notice that it is watching native advertising practices, and is ready to pounce on deception – so clear labeling of native advertising is vital. The Newspaper Association of America has said it will engage with the commission to discourage agency actions that would unduly burden newspapers as they explore this new source of advertising revenue. NAA will continue to share guidance for increased transparency as it emerges across the advertising and publishing industries. Click here for more information about online native advertising.