A new standard is on the way that will allow native advertising to scale in a big way.
It's called OpenRTB 2.3 and a detailed analysis of this forthcoming open format is detailed in AdExchanger.
"The standard puts the final nail in the coffin in terms of scale," writes Curt Larson, VP of Product at Sharethrough.
When native advertising can scale, it will open up one of the highest-impact inventory channels – mobile – to programmatic, or automated, ad buying.
When that happens, the industry players will should be wary to avoid what led to the demise of the banner: a race to the bottom.
It's up to everyone with a stake in the game to ensure the quality bar remains high and luckily, everyone wins when ads are higher quality: publications can command higher rates when viewers are more engaged. And if viewers are more engagaed, there's clearly something about that ad they're appreciating.
Now, to the fun part: how it all works.
Essentially, two technologies are at play when you visit a website that is delivering native, in-feed ads: real-time bidding (RTB) and real-time templating (RTT).
Here's the process:
User visits site, making ad impression available.
Supply-Side Platform (SSP) sends bid request on behalf of publisher site.
Native Demand-Side Platforms (DSP) respond with metadata and bids on behalf of advertisers.
Native SSP receives metadata and selects the winning bid (OpenRTB 2.3 metadata includes headline, content URL, description text, thumbnail, brand logo, and brand name).
Native SSP assembles native ad with Real-time templating to fit into the design and layout of the site or app.