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 Also, the conversation looks at the FTC and its out of date guidelines.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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How to Use Native Advertising Without Getting Fined by the FTC

How to Use Native Advertising Without Getting Fined by the FTC | Public Relations & Social Marketing Insight | Scoop.it

Therein lies the problem: native advertising is more effective because it masquerades as actual content. But it’s illegal to pass advertising messages off as editorial content. The Advertising Standards Authority in the United Kingdom, for instance, banned a native YouTube ad sponsored by Oreo that featured two well known video bloggers because the agency felt it was not clearly identified as marketing communication.


Stateside, the Federal Trade Commission (“FTC”) has long waged war on false advertising—marketing or advertising communications that tend to mislead consumers. Recently, the FTC issued an “enforcement policy statement on deceptively formatted advertisements” giving advertisers and publishers alike a heads up: deceptive native ads will not be tolerated.


So how can your brand capitalize on native advertising without breaking the law? The FTC offers some insight in their guide, “Native Advertising: A Guide for Businesses.”...

Jeff Domansky's insight:

Attorney Kerry O'Shea Gorgone discusses a strategy on How to Use Native Advertising Without Getting Fined by the FTC.

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Even with labels, consumers are confused about native ads | Knight Digital Media Center

Even with labels, consumers are confused about native ads | Knight Digital Media Center | Public Relations & Social Marketing Insight | Scoop.it

Like most news publications, the 14 organizations that participated in a recent study of native advertising label the content to distinguish it from their independent editorial content. They said they were well aware of the need to maintain audience trust in the crowded news and information market.

However, in general, the use of the same storytelling conventions and formats as news in sponsored content has prompted user confusion and drawn the attention of the Federal Trade Commission.

The 14 publications that participated in "The Rise of Sponsored Content in Digital News Publications," a study I produced for the Tow-Knight Center for Entrepreneurial Journalism at City University of New York, maintained that native ads done well aren’t necessarily deceptive or even unwelcome. The key they said, is to provide engaging content that is relevant to the audience and to generally avoid making direct sales pitches.

“I don’t think anybody objects to native advertising. People just object to bad advertising,” said Sebastian Tomich, Senior Vice President Advertising & Innovation at The New York Times. “It comes down to quality, user experience and quality.”...

Jeff Domansky's insight:

Are consumers confused about native ads or do they just not care? This is a very interesting study for marketers to read.

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