How does programmatic native advertising work, and what makes it trustworthy?
Part of Programmatic media planning
The short answer
Programmatic native advertising sells ads that take on the look of the page around them through automated auctions and deals. The exchange sends a list of assets it can render, such as a title, image, description and sponsor name, and the publisher assembles the ad in its own style. A clear label must still tell readers it is paid.
Key takeaways
- In the OpenRTB Native 1.2 specification a native request lists assets, a context and a placement type, and the bid returns the pieces, not a finished banner.
- The spec's placement types separate in-feed units, units inside the article, units outside the core content and recommendation widgets.
- The FTC's December 2015 guide says native ads must be identifiable as advertising before consumers arrive at the main advertising page.
- In Canada, Clause 2 of the Canadian Code of Advertising Standards says no advertisement shall be presented in a format or style that conceals the fact that it is an advertisement.
What is programmatic native advertising?
Definition
- Programmatic native ad
- An ad bought through an exchange or deal whose parts, such as a headline, image, short description and sponsor name, are rendered by the publisher to match the layout and design of the surrounding content, with a label saying it is paid.
The OpenRTB Native Ads specification 1.2 (opens in a new tab) describes native formats as ones that match both the form and function of the user experience in which it is placed, unlike banners shown in a separate space of predefined and universal size. A display buy sends a finished creative in a fixed size; a native buy sends parts that the publisher arranges in its own fonts, colors and grid.
Programmatic native was standardized in stages: an IAB subcommittee formed in May 2013, version 1.0 of the spec appeared in early 2015 and version 1.2 in 2017, adding third party creative serving, event trackers and a buyer privacy notice. In OpenRTB 2.6 (opens in a new tab) the Native object sits inside the impression, beside or instead of Banner and Video.
How does the OpenRTB Native specification describe a native ad?
A native bid request carries a Native Markup Request with three key fields: context (what surrounds the ad), plcmttype (the format of the unit) and assets (the pieces the publisher can render, each flagged required or optional). The response returns those assets with a link and event trackers, and the exchange will not accept a bid that lacks a required asset.
| Asset | Spec name and type | Recommendation in the spec | Planning note |
|---|---|---|---|
| Headline | Title object, len field | Maximum length recommended at 25, 90 or 140 characters | Write three headline lengths before the flight |
| Sponsor | Data asset type 1, sponsored | Required, maximum 25 characters or longer; the brand name of the sponsor | Use the advertiser's real brand name, the base of the disclosure |
| Description | Data asset type 2, desc | Recommended, maximum 140 characters or longer; may be truncated | Keep the key message in the first sentence |
| Main image | Image asset type 3 | Small variant at least 200 high, large variant at least 627 high; aspect ratios 1:1, 4:3 or 1.91:1 | Supply images in all three ratios |
| Icon or logo | Image asset type 1 | Optional, at least 50 high, 1:1 | A square brand logo |
| Call to action | Data asset type 12, ctatext | Optional, maximum 15 characters or longer | Short verbs that fit a button |
The spec explains the narrow choices: DSPs can not be expected to provide infinite headline lengths or thumbnail ratios, and sellers that deviate may limit applicable DSP demand. Native creative is a kit, not a file. If the kit lacks a length or ratio a publisher requires, the DSP cannot bid there, and the line underdelivers for reasons the report will not name.
Where do native ads appear on publisher sites?
The spec's placement type list describes the format of the ad separate from the surrounding context, and its context list describes the page. Reading both tells an in-feed unit on a section front from a grid under a product review.
| plcmttype | Spec description | Example location | What to look at |
|---|---|---|---|
| 1 | In the feed of content, as an item inside the organic feed, grid, listing, carousel or menu tile | Home pages, section fronts, article lists | Whether the unit is labeled as clearly as the editorial items around it are not |
| 2 | In the atomic unit of the content, in the article page or single image page | Between paragraphs or below the article body | Whether the unit breaks the reading flow or looks like part of the story |
| 3 | Outside the core content, such as the right rail or a banner style placement near the content | Side rails and headline banners | Whether it is really native or a display slot with native styling |
| 4 | Recommendation widget, most commonly presented below the article content | Grids of promoted links under articles | Where the links lead and how many paid tiles surround the page |
The IAB Native Advertising Playbook 2.0 (opens in a new tab), published in May 2019, names three core types: In-Feed/In-Content ads, Content Recommendation Ads (formerly content recommendation widgets) and Branded/Native Content, the paid article itself. In-feed units can run in sizes such as 300x250, but count as native only if customized to match the unique look and feel of the publisher. Recommendation grids carry risks covered in the guide to traffic arbitrage.
What disclosure do native ads need under FTC guidance?
The FTC's Native Advertising: A Guide for Businesses (opens in a new tab), published in December 2015, supplements its Enforcement Policy Statement on Deceptively Formatted Advertisements. Its central rule: advertisers are responsible for ensuring that native ads are identifiable as advertising before consumers arrive at the main advertising page. Disclosures must be clear and prominent, because only disclosures consumers notice, process and understand can be effective.
| Topic | What the FTC guide says |
|---|---|
| Terms likely to be understood | Ad, Advertisement, Paid Advertisement, Sponsored Advertising Content |
| Terms to avoid | Promoted or Promoted Stories, which in this context are at best ambiguous |
| Sponsored by and similar | Consumers may read Presented by, Brought to You by, Promoted by or Sponsored by to mean a sponsor funded or underwrote but did not create or influence the content |
| Placement | Consumers are most likely to notice disclosures placed immediately in front of or above the headline; on the ad page itself, as close as possible to the headline |
| Recommendation grids | Where paid items appear with headings like More Content for You or From Around the Web, native ads should be individually labeled to make clear which content items are ads |
| Who is responsible | The guide says the FTC has also acted against other parties who helped create deceptive advertising content, such as ad agencies and operators of affiliate networks |
Canadian campaigns meet a parallel rule. Clause 2 of the Canadian Code of Advertising Standards (opens in a new tab), administered by Ad Standards, reads: No advertisement shall be presented in a format or style that conceals the fact that it is an advertisement. The clause speaks of format and style, not of how the space was bought, so a planner should hold a native line from an exchange to the same label standard as a sponsored article bought directly.
How should native placements be reviewed for quality?
The Playbook gives four questions to ask of any native unit: design (does it match the page), location (inside the content feed or outside it), ad behavior (does it act like the content around it, for example linking off site when editorial links stay on site) and disclosure. They turn into a review a planner can run before a native deal is approved.
A native supply review for one publisher or deal
- Open three recent pages where the unit runs. Check a section front for plcmttype 1 and an article for plcmttype 2 or 4, on phone and desktop.
- Read the label as a reader would. It should use wording the FTC lists as likely to be understood and sit in front of or above the headline.
- Count the paid items. Note how many native and display units surround the editorial content, and whether paid tiles outnumber stories.
- Follow the click. The unit should lead to the advertiser or a labeled sponsored page that repeats the disclosure near its headline.
- Compare the request with the page. Ask the seller which context and plcmttype values the deal sends, and check they match what you saw.
- Record the outcome. Note label wording, location and exclusions in the plan for the next flight.
Native creative and disclosure checks before launch
- The sponsored asset carries the advertiser's real brand name.
- Headlines exist in the lengths the deal requires, and none reads like a news report from the publisher.
- Main images are supplied in 1:1, 4:3 and 1.91:1.
- The landing page is labeled as advertising near its headline.
- Units in recommendation grids are individually labeled on every site in the deal.
How does PlacementGraph help choose sites for a native buy?
What does a native plan look like for one brief?
Fictional example
A senior living community in Delaware
A fictional operator of senior living communities in Wilmington, Dover and Lewes, Delaware, wants adult children and retirees in the state to read a sponsored guide on planning a move to independent living. The agency plans a native line in English on local news, retirement lifestyle and personal finance sites.
The creative kit holds headlines in 25 and 90 characters, a 140 character description, images in the three spec ratios and the operator's name as the sponsor. The plan buys in-feed and in-article units only and leaves recommendation grids out of this flight.
During review, one lifestyle site prints its label as Promoted in light gray under the headline. The planner asks for Sponsored Advertising Content above the headline, and the site stays off the list until the template changes. The sponsored guide carries an advertisement label beside its title.
Frequently asked questions
Is native advertising the same as sponsored content?
Not quite. The IAB Playbook treats branded or sponsored content, the paid article itself, as one native type, and in-feed and recommendation ads as the units that promote it. A programmatic native line buys the promoting units; the article it links to may be the advertiser's own page or one the publisher wrote for the brand.
Can one creative serve both native and display impressions?
An OpenRTB impression can be offered as banner and native at once, but a bid must conform to one of the offered types. A native bid returns assets and a display bid returns a finished creative, so the DSP needs both to compete for those impressions.
Can a native ad include video?
Yes. The Native 1.2 specification has a video asset whose request lists MIME types, minimum and maximum duration and accepted protocols, and whose response carries a VAST tag. A video in a native unit plays outside a stream of video content, so read the guide to outstream video ads before pricing it.
Who writes the disclosure label on a native ad?
The publisher's template prints the label, using the sponsor name the buyer sends. The FTC guide places responsibility on advertisers and notes action against others who helped create deceptive content, so check the printed label rather than trust a default.
Sources
- OpenRTB Native Ads Specification 1.2 (opens in a new tab)IAB Tech Lab on GitHub
- OpenRTB 2.6 specification, Object: Native (opens in a new tab)IAB Tech Lab on GitHub
- IAB Native Advertising Playbook 2.0 (May 2019) (opens in a new tab)IAB
- Native Advertising: A Guide for Businesses (December 2015) (opens in a new tab)Federal Trade Commission
- The Canadian Code of Advertising Standards (opens in a new tab)Ad Standards
Researched and written by PlacementGraph Research. Read how we research, source and update these pages. Corrections: diana@placementgraph.com.