The Ethics of Native Advertising

 Casey George 

cg918217@ohio.edu 

Source: Mara Einstein Marketing Society

Native advertising and sponsored content have become extremely popular in today's digital world. Ten years ago, no one was using sponsored content or native advertising in their marketing strategy because hardly anyone knew what it was. Now, it is seen in mainstream news outlets such as The New York Times, The Washington Post, Forbes, and so many more. 

So, what exactly is sponsored content and native advertising? This article by Brandpoint discusses the similarities and differences between sponsored content and native advertising. They are both forms of paid media strategy. Sponsored content is designed to look just like editorial content instead of traditional advertising. It is usually a longer-form piece such as an article that lives on a website. It may include a subtle plug to a brand's products or services at the end. Native advertisements look very similar to other Facebook and Instagram posts, but they usually include a headline and link to sponsored, earned or paid media the brand wants the audience to see. 

Advertisers love sponsored content and native ads because they don't look like they are blatantly trying to sell a product or service. It's for this reason that many people question the ethics of native advertising. 

Nearly half of consumers don't understand what sponsored content is or know when it's right in front of them. Most people understand the point of traditional advertising is to sell something. However, native ads and sponsored content don't make it clear something is being advertised. This is because sponsored content looks like a regular article. It aims to inform and educate readers and then flow smoothly into a subtle plug to the brand's products or services. 

40% of brands use this type of advertising and that percentage is growing. Brands and publishers have made millions of dollars from native advertising and that is why it has become so popular. It is crucial for brands and publishers to follow ethical principles when creating native ads and sponsored content. Here are four simple steps to produce ethical content:

1. Disclosure

2. Tell don't sell

3. Produce content in a separate department

4. Allow for reader comments

First off, brands should always make it known they are sponsoring the piece of content. They must alert readers that the content has been paid for. The point of native ads and sponsored content is not only to sell something, but also to stay in the readers head. It's all about brand recognition. Brands want readers to think about their products or services first the next time they go shopping. They hope if you read their brand name enough times you will subconsciously recall it next time your in the market for that specific product or service. 

Brands also must ensure the content aims to inform or educate readers on a topic and not just try to sell something. The content should be relevant and authentic to the brand and what it stands for. 

Many companies now have separate departments solely for creating sponsored content and native ads. It wouldn't be as ethical for the marketing or advertising departments to create these ads because they are focused on increasing sales and business. 

Lastly, publishers should make sure they allow for readers to leave comments on the sponsored content. People have a right to share their opinions and express their thoughts. Sponsored content should be no different. 

This article by the American Marketing Association discusses six ways advertisers and publishers can make native advertising more ethical. According to the article, native advertisements should follow the Federal Trade Commission's (FTC) guidelines. The main points the FTC's guidelines highlight are transparency and unambiguous disclosure. Another critical component is clear labeling. Brands labels should be bold and obvious so readers don't scroll right past them. Brands shouldn't try to trick people by using different fonts, weird formats or small logos. I also really like how this article discusses the importance of brands conducting more research into the way people see and process labels. There is plenty of statistics and research that could assist brands with creating ethical labels. 

There are many simple steps brands can take to create more ethical native advertisements and sponsored content. Brands should always strive to follow ethical practices and consumers should be alert when reading content and looking at advertisements.