According to the Native Advertising Playbook, written by the Interactive Advertising Bureau (IAB), native advertisements are “paid ads that are so cohesive with the page content, assimilated into the design, and consistent with the platform behavior that the viewer simply feels that they belong.”
John Oliver does a good job giving some more insight into native advertising in a clip from Last Week Tonight with John Oliver.
This causes issues with consumers because our trust in the publisher is diminishing. It also confuses the reader with various labels. Aside from plainly stating “advertisement” companies can use “sponsored by,” “brought to you by,” “presented by,” and “promoted by” to label the sponsored content.
Further, readers state that they feel deceived when they realize the content they are looking was sponsored by someone else. A 2014 study done by Contently showed that almost 54% of web users do not trust sponsored content.