AGC believes that native advertising formats can be powerful delivery mechanisms for digital advertising and are inherently benign but when paired up with compelling and relevant ad content, could ultimately enhance the user experience and drive greater revenue for publishers. While challenges certainly exist, industry participants will, by necessity if not moral guidance, eventually figure out ways to maintain high integrity and quality while effectively delivering marketing messages. In pursuit of this tremendous opportunity, dozens of native advertising companies have emerged, ranging from content creation and advertiser platforms to publisher widgets and tools companies. These native advertising businesses are growing rapidly, fueled by a large expanding market and over $300 million in venture capital (Content Marketing Institute) in just the last two years. This report examines some of the key players, trends and challenges within the native advertising industry.