Do People Care Enough About Native Advertising?

Jack Knudson

jackknudson89@gmail.com

To some, native advertising might seem like a fun, harmless attempt by advertisers to get more business. With more companies pushing creative boundaries, this new way of advertising is beginning to replace traditional display advertising.

The younger, more technologically savvy generations, Millennials and Gen Z, find no problem with advertisements taking on a new, more personalized form. As the future looks to change the dynamics of advertisements and company interactions with the public, younger generations must remember to not become numb to the potential dangers of native advertising. 

First, it is important to note that native advertising is not inherently dangerous. Many examples lie within the advertising of companies like Warby Parker and Blue Apron, as explained in this Forbes article. 

Warby Parker creates "advertorial pieces that appear on various lifestyle websites and blogs", using them to spread the word about their products. Blue Apron does much of the same with suggested content that takes the form of articles that are essentially positive reviews of their products. 

With examples like these, native advertising might not seem like much of a negative development at all. Of course, there might be slight clickbait elements, but these companies are not lying about their product or hiding information. However, it is imperative to know that these unethical actions can still occur. Younger generations must not fall victim to fully trusting anything they see on the internet. 

Picture source: Wikimedia Commons

Several studies show that younger generations accept native advertising and more personalized advertisements. In an overview of a study done by Business Insider Intelligence, it was found that "click-through rates (CTR) for premium native ads were highest on smartphones..." The study also saw that "average CTR rates for premium native ads on mobile devices were more than 4x higher than the average CTR of traditional, non-native display ads in the US." These two aspects of the study set the precedent that mobile usage is becoming increasingly popular, likely because of younger generations. Along with it, native advertising is facing a similar boost in popularity. 

A Salesforce study covered in a MarTech Today article found that 75 percent of Gen Z/Millennials "say they want to work with businesses that have instant on-demand engagement." Then, 63 percent of the same group say they "understand how companies are using their data." Furthermore, 67 percent of the same group expect offers to always be personalized. The percentages for Baby Boomers and Gen X in each of these categories are lower. With this study, it is clear that native advertising has a strong hold on younger generations because of their tendency to trust companies online. 

A final study done by Time Inc. found that "Two in three consumers have greater trust in custom content than traditional advertising." Gathering data from over 17,000 Gen Z, Millennial, and Gen X participants, the study shows a few more notable findings: "92% believe brands have expertise on topics and add value to content" and "56% like that brands are not just trying to sell, but are sharing something cool or teaching them."

The study notes that Gen Z are the most open to deepening their relationships with brands. However, a promising statistic is that "72% want video and infographics to better explore the story or data."

Putting all of these evaluations together, it is clear that native advertising is likely set to grow as younger generations place so much trust in companies. With recent problems that involve data collection, it is crucial for people to stay careful on the internet.  

Again, it is not that all personalized advertisements are negative. However, it is important for young people to stay vigilant in their experiences online. They must learn to accept the quality of skepticism when it comes to viewing native advertisements on editorial websites. It is still possible to enjoy a personalized advertisement while remembering to draw the line between a companies' brand and real, factual news. 

Now that companies will continue to expand their advertising presence in these personalized ways, people  should remember to not let advertisement blind them from the truth in any way.