Public Relations & Social Marketing Insight
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Public Relations & Social Marketing Insight
Social marketing, PR insight & thought leadership - from The PR Coach
Curated by Jeff Domansky
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Research Finds Native Advertising Can Damage Media Outlets' Reputations

Research Finds Native Advertising Can Damage Media Outlets' Reputations | Public Relations & Social Marketing Insight | Scoop.it

Native Insider: Part of the challenge with "native" is that each organization has a different understanding of what it is. For the purposes of the research, what is your definition of native advertising?

Wu: In our study, we defined native advertising as sponsored content, which features content that is similar and consistent with publishers’ content and is often consumed by readers like non-sponsored content. I agree that there are also other types of native advertising, such as sponsored social media posts or sponsored hyperlinks. We focused on sponsored content because it is widely adopted by many news organizations, including very reputable ones like The New York Times. 

Native Insider: Your research found that when content was identified as native advertising, readers expressed a lower opinion of the media outlet it was published in. However, the reputation of the company being promoted was not affected. Can you elaborate on this finding?

Wu: I think this was one of the most interesting findings in our study. We originally expected that both companies and media outlets would be negatively influenced. However, the media outlet was the only source that was affected. On one hand, this indicates that readers are not surprised by the sponsored content from a company, since similar covert marketing techniques have been utilized before, such as video news releases....

Jeff Domansky's insight:

Fascinating research study shows media host's reputation suffers but not the advertiser doing native advertising. Also, the conversation looks at the FTC and its out of date guidelines.

Pierre Placide's curator insight, May 18, 2016 1:20 PM
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Patrick Frison Roche's curator insight, May 19, 2016 3:50 AM
What? Readers can actually differentiate advertising from editorial? And they resent media who entertain the confusion? Quelle surprise!
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Customers Are Not Commodities. Why Does Advertising Treat Them Like They Are?

Customers Are Not Commodities. Why Does Advertising Treat Them Like They Are? | Public Relations & Social Marketing Insight | Scoop.it
Now that we have all of these digital touch-points and databases, marketers and their corporate information officers and finance officers are looking for models to organize and manage all of these marketing and advertising activities. And, quite naturally, they are looking for guidance to models that worked on other parts of their business. Not surprisingly, many have focused on what has worked for their supply chain and have tried to apply supply chain-oriented models to their “demand chain.”

I believe that treating marketing – and the creation of customers – with supply-chain models is short-sighted and will be damaging for businesses and their customers. Why? Because is likens acquiring customers to buying commodity raw materials. It assumes that marketing is only a cost, and that customers are commodities. It doesn’t assume that customers are organic assets that can grow. As Wenda Millard famously warned us almost a decade ago at an IAB meeting, trading advertising like “pork bellies” will be damaging to our industry.

Wenda is and was right. Media should not be bought and sold like pork bellies, and not just because much of what makes media special can’t be captured in a real-time-bidded world, but because customers are not commodities, and treating them as such can only hurt businesses that do.
Jeff Domansky's insight:

Dave Morgan says when advertising treats customers like "pork bellies", they don't acknowledge the organic opportunities to grow audience relationships.

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