The document discusses best practices for native advertising. It defines native ads as paid ads integrated into platform content that users perceive as naturally belonging. The opportunity for native ads is highlighted by data showing consumers find value in in-feed ads that introduce new products and information. When done well through effective integration, transparency, and valuable content, native ads can significantly lift key performance metrics like awareness, purchase intent, and recommendations for advertisers. The three best practices emphasized are selecting the right platform based on audience needs, adding value for users through engaging content, and being transparent about ads through logos and disclosures.

1. T H E
N AT I V E
A D V E RT I S I N G
F R O N T I E R

2. 2014
2015
87%
87%
59%
66%
70%
79%
What advertisers are planning to buy in 2015
The Rise of Native: 2014-2015
Display
Social
Mobile
Video
Search
Streaming Music
Other Digital
+13%
CHANGE
Native
85%
85%
Source: Native Advertising Report. Native Advertising Perceptions & Trends, Advertiser Perceptions, July 2014
Yahoo 2014 Confidential & Proprietary
78%
77%
79%
82%
26%
27%
82%
85%

3. The Native Advertising Frontier
i. Defining Native
ii. The Native Opportunity
iii. Best Practices

4. ”
“Native is in the eye of the beholder, depending
on where one sits in the ecosystem and the
Strategic and media objectives of the marketer.
-IAB Native Advertising Playbook
…a paid ad that is so cohesive with the pages
content, assimilated into the design, and
Consistent with the platform behavior that the
Viewer simply feels that it belongs.
”
“
Source: IAB Advertising Playbook, December 2013

5. SEARCH IN-FEED CUSTOM NATIVE
RECOMMENDATION WIDGETS PROMOTED LISTING IN-AD
Source: IAB Advertising Playbook, December 2013
Native Advertising Formats

6. A Fresh Definition
An opportunity for brands to give back to consumers by
making their online experience more enriching, and less disruptive.
Source: The Wharton Future of Advertising Program / Yahoo
Ad is presented in the
same way as associated
content, personalized for
the viewer, optimized for
the device, related to
context of the page
Ad is recognized as
sponsored content
Consumer and advertiser
objectives align if
sponsor content is
relevant and valuable
EFFECTIVE
INTEGRATION
OVERT
TRANSPARENCY
ALIGNED
OBJECTIVES

7. The Native Advertising Frontier
i. Defining Native
ii. The Native Opportunity
iii. Best Practices

8. Consumers Find Value in In-Feed ds
60%OF CONSUMERS
HAVE POSITIVE
IMRESSIONS
Top Reasons In-Feed Ads
Provide Value:
• They introduce me to new products.
• They provide information I wouldn’t
have discovered otherwise.
• They fit naturally with the experience.
Source: Yahoo/Ipsos Consumer Perceptions About In-Feed Ads, August, 2013

9. % Lift of Yahoo In-Stream vs. All Display Campaigns: Over Audience
Standard Display vs. Native
Source: Yahoo/MillardBrown Digital Behavioral Impact AdFx Study | May 2014, Measurement Period: Campaign +1 Week
Lift is calculated between the control (not exposed) and those exposed to advertising.
3.6x
Lift3.9x
Lift
47%
181%
204%
56%
% Lift – Industry Display Norm
% Lift – Yahoo In-stream Norm (9 Campaigns)
Advertiser Site
View-through
Branded Search
Activity

10. KPI Activity: Lift (Control vs. Exposed)
AUTO
1412%
ENT
128%
HEALTH AND
WELLNESS
374%
TAX
SERVICES
103%
RETAIL
471%
ONLINE
AUTO SERVICE
1337%
TECH &
TELCO
539%
QSR
319%
CREDIT
CARD
135%
Native ads drive measurable performance for advertisers in a number of categories.

11. Case Study: Travel
Top of Mind
Unaided Awareness
Total Unaided
Awareness
Favorability
(Like a Lot/Somewhat)
Purchase Intent
(Definitely/Probably Likely)
Recommend
(Extremely/Somewhat Likely)
% Lift
+114%
+80%
+33%
+16%
+33%
Source: Yahoo/Ipsos Gemini Mobile Advertising Effectiveness Study, May
2014
Mobile Native Ad for Travel Provider Moved Key Brand Metrics

12. The Native Advertising Frontier
i. Defining Native
ii. The Native Opportunity
iii. Best Practices

13. Three Best Practices
Select The Right Platform
Add Value for Users
Be Transparent

14. Select The Right Platform

15. Social Platforms Fulfill Different Emotional Needs
VIDEO PHOTOS TEXT GIF EMOTIONAL ROLES
Entertainment, Amusement
Multi-faceted
Connection
Accessibility
Staying informed
Inspiration
Experimentation
Source: Yahoo/Tumblr/Digitas/Razorfish Content Marketing Best Practices, Audience Theory’s Branded Content Qual Interviews, 2014

16. Effective Integration = Form + Function
Ensure that the ad is integrated
with the design and is noticed
in the same pattern as the
surrounding content.
HEAT MAP
Low HighMedium
Gaze Map
2
5
6
8
9
10
7
3
4
* Time looking at ad: As proportion of the average article

17. Effectively Integrated Native Mobile Ads Earn 3X More Attention
HEAT MAP
Low HighMedium
Well-Integrated Poorly Integrated
* Time looking at ad: As proportion of the average article
Source: Ad Environments – The Halo Effect, Yahoo & Innerscope, September 2014

18. Well-Integrated Native Mobile Ads Generate More Engagement
Summary of Time Spent on Ads
* Time looking at ad: As proportion of the average article
Mobile Non-Native
Mobile Native
Fully Integrated
Average Time
Per Article
Average Time
Per Ad
% Time
Looking at Ad
4.0 sec 3.2 sec 83%
2.7 sec 0.9 sec 32%

19. Engage With Valuable Content

20. When A Brand’s
Content Experience
Is Good Enough,
Millennial’s Take Notice
From Native to Millennials
“For me, [when it comes] to sharing, if it
said ‘Ford’ It wouldn’t be a big deal... It
wouldn’t make or break whether I was
going to share it or not”
-F, 28

21. 52%
THE PROMOTED
ADVERTISING CONTENT ON
YAHOO FOOD HELPED
THEM LEARN MORE
ABOUT FOOD/COOKING
Sponsored
Sponsored
OF USERS
SAY
Source: Yahoo/MillwardBrown Digital Native Content Marketing Advertising Effectiveness Study, April 2014

22. Control
Exposed
Driving Brand Metrics With Valuable Content
Food Magazine Brand Metrics | Top 2 Box
19%
27%
40%
55%
41%
55%
51%
34%
Online Ad
Awareness
Purchase Intent
(Top 2 Box)
Brand Attribute #1 Brand Attribute #2
Source: Yahoo/MillardBrown Digital Advertising Effectiveness Test, April 2014
Lift is calculated between the control (not exposed) and those exposed to advertising.
1.5x
Lift
1.4x
Lift
1.4x
Lift 1.5x
Lift

23. Be Transparent

24. Analyzing the Effect of Transparency
Original Test: No Logo New Test: Logo New Test: Logo & New Copy
1ST PHASE TESTING 2ND PHASE TESTING
Source: Yahoo/Ipsos CPG Gemini Mobile Native Advertising Effectiveness Study, via Force Exposure, October 2014

25. Total Unaided Awareness
Likelihood to Recommend
Favourability
(Like a lot/somewhat)
Control Original
Test
New Logo New Logo &
Copy
84%
76%
79%
78%
70%
72%68%69%
65% 66%
71%70%
The Power of Transparency When Native is Too Native
Brand Score Card
Source: Yahoo/Ipsos CPG Gemini Mobile Native Advertising Effectiveness Study, via Force Exposure, October 2014

26. 71%
75%
64%
67%
Driving KPIs Through Transparency
Purchase Intent (Def/Prob)
Note: Letters indicate significant difference versus other segments at a 95% confidence interval.
Control Original
Test
New Test
Logo
Logo/Copy
Source: Yahoo/Ipsos CPG Gemini Mobile Native Advertising Effectiveness Study, via Force Exposure, October 2014