Another problem native advertising has is it doesn't help the brand outlet much. Take a credible, huge audience outlet like the New York Times. If they used native advertisement for their newspaper like Buzzfeed does the NYT would lose a lot of its audience and maybe think they sold out.
According to a study from Phys.org only 7 to 18 percent of readers could tell between a real news story and a native advertisement. Those numbers are scary to think about when we're already surrounded by advertisement and only a handful of people know what they're really reading.
|Fast Company Infographic|
Without the advertisement tag on top of the graphic, I was not able to tell whether this was a graphic to a story, or an advertisement.