Are you in the publishing business? If not, as a web user discussions of advertorial and 'native' advertising may seem arcane, but in reality will affect you as a user and content consumer significantly. Google is here to help provide direction.
In essence for the uninitiated, editorial content is independent, written by writers and editors who think a story is interesting or is something people want to know. No advertiser is exercising control over the messaging or content, and reader's can be ensured no influence has been given or bias from a company trying to extol its own perspective. Articles from the NYTimes, CIO.com, and lots of other places who have legitimate editorial independence still exist in the world today.
Advertorials and 'native' content is sponsored content, or in more plain terms, advertising, that can be made and presented in a way to look like independent editorial content.
The line between advertorial and editorial is blurring more and more these days, and Google is here to help you the reader to know the source and intention of the content you are reading. This video lays out those guidelines you are providers needs to define for your user base, or be penalized by Google in search rankings and in Google News.
A few key points. Paid links do not flow page rank. You must have no-follow on those links so the search engine knows these are paid ads. And make sure you label clearly with sponsored or advertisement any paid links or advertorial on your site.
Stay honest publishers, someone is watching you, and you will be punished if you try to pull the wool over people's eyes.