I started watching a trailer for a new movie without even realizing what I was doing. I spend a lot of time on Tik Tok and find myself always giving videos a chance to see if the content interests me. Advertisements on Tik Tok occur in-feed and show that they are sponsored a few seconds after they start playing. This was a movie I normally wouldn’t click on, but the opening got me interested so I stayed to see the rest. This is the power of native advertising.
What is Native Advertising?
Native advertising is a form of paid advertising where the ads match the look and feel of the media format where they appear. This style of marketing occurs on many different platforms including social media, websites, magazines, etc. This style of ad makes the user’s experience more seamless as they are not constantly being distracted by ill-fitting pop-ups and banners. The original forms of native advertisements are sponsored content, product placements, and advertorials. These placements are still utilized today, but as technologies transform, the native ads adapt.
Is it Ethical?
A large question in the marketing industry revolves around if native advertising is an ethical practice. The reason this controversy exists is that these ads are deceptive by design. To stop consumers from avoiding the ads, marketers create content that blends in. This can be problematic because when an advertisement is not recognized as an ad, it has the potential to be deceptive, which is illegal in the United States.
Many consumers have developed persuasion knowledge, which is the ability to understand when they are being marketed to. We learn from a young age when someone is trying to sell us something. This knowledge allows us to not be influenced by every ad because we know that some statements are embellished. Despite this inherent knowledge, native advertising can make it difficult to decipher what content is paid. This is why it is necessary for brands to clearly label if the content is sponsored.
The FTC has developed guidelines for native advertising, although these are not to be confused with laws. The FTC policy has three main tenants. First, the brand must be transparent. Second, disclosures are necessary where content could be deceiving. Finally, disclosure, when needed, must be prominent. Although these guidelines have the best intentions, their vague manner allows brands to skate around the rules.
Even though companies may be able to get away with not strictly following FTC guidelines, that is a very bad practice. When consumers perceive manipulative intent, advertising effectiveness outcomes drop and consumer-brand relationships are damaged. Market opinion can impact consumer intentions to purchase from the company, overall attitude towards the brand, and the intention to share information about the products and services. Without a strong relationship, the success of your campaign is limited. No one likes feeling manipulated.
I believe that when native advertising follows FTC guidelines it is ethical. Our job as markers is to sell a product, it isn’t to manipulate our consumers. Native advertising can be very efficient when done correctly. A Reuters report in 2018 found that 73% of readers prefer branded content to traditional ads. Markets want to stand out amongst the competition without impeding a user’s experience and this style allows both to be accurate.
Impact on Platforms
As I previously mentioned, it is in the brand’s best interest to clearly label its native ads. It is also in the best interest of platforms and publications to enforce this rule. When users feel deceived it negatively impacts the company and the surrounding content. For example, if the New York Times failed to label sponsored content, then it could call into question the legitimacy of the non-biased articles. Advertising is often closely connected with journalism, as both industries rely on each other. This cross allows for many benefits but must be monitored to ensure that the legitimacy of journalism is not brought down by native ads.
It is also integral that platforms ensure that the ads do not impede on the organic content. My biggest complaint about Facebook is that my timeline feels overrun by ads. I rarely see content from my friends and instead, get industry news and articles. I have stopped looking at my timeline because it ruined my experience. There needs to be a balance.
Next Steps For Marketing Professionals
Native advertising is not going away. Its effectiveness has been proven and it allows companies to connect with audiences through branded content rather than traditional methods. The key is to ensure you are keeping ethics in mind to make ads that are clear and effective. Create marketing materials that are so engaging that users feel compelled to watch them even though they know it is sponsored.
Sources
Conick, 11.5.2019 Hal, et al. “6 Ways to Make Your Native Advertising More Ethical.” American Marketing Association, 5 Nov. 2019, https://www.ama.org/marketing-news/6-ways-to-make-your-native-advertising-more-ethical/.
“Persuasion Knowledge in the Marketplace: A Meta-Analysis.” Society For Consumer Psychology, 9 June 2021, https://myscp.onlinelibrary.wiley.com/doi/10.1002/jcpy.1258.