Digital Media 101: Digital Marketing and Advertising - Native Advertising and Sponsored Content Disguised ads ethical concerns

What It Is

Native Advertising and Sponsored Content refer to online advertisements that are designed to blend in with the surrounding content, often making it difficult for users to distinguish between editorial content and paid promotions. A canonical example is Facebook's "Sponsored Stories" feature, which was launched in 2011 and allowed brands to pay for their content to be promoted in users' news feeds. This matters for understanding digital culture because it highlights the blurred lines between advertising and editorial content, and the potential for users to be misled or manipulated by sponsored content.

Key Terms & Concepts

• Native Advertising: Online ads that are designed to match the form and function of the surrounding content, often using social media platforms or websites to reach target audiences.
• Sponsored Content: Paid content that is created and promoted by brands, often in the form of articles, videos, or social media posts.
• Advertorial: A type of advertising that is presented in a way that resembles editorial content, often using a more subtle or persuasive approach.
• Native Ad Formats: Types of native ads that are designed to match the format of the surrounding content, such as sponsored tweets or Facebook posts.
• Branded Content: Content that is created and promoted by brands, often in partnership with media outlets or influencers.
• Influencer Marketing: A type of marketing that involves partnering with influencers or content creators to promote products or services.
• Content Marketing: A type of marketing that involves creating and distributing valuable, relevant, and consistent content to attract and retain a clearly defined audience.
• Transparency: The practice of clearly labeling sponsored content or native ads to avoid misleading users.
• Disclosure: The practice of clearly disclosing the source of sponsored content or native ads to avoid misleading users.
• Federal Trade Commission (FTC): A US government agency that regulates advertising and requires transparency and disclosure in sponsored content.
• European Union's General Data Protection Regulation (GDPR): A regulation that requires transparency and consent in online advertising and data collection.
• Algorithmic Transparency: The practice of providing users with information about how online algorithms are used to select and display content.

Common Misunderstandings

• Misunderstanding: Native advertising is the same as sponsored content.
• Correction: Native advertising is a broader term that encompasses sponsored content, but also includes other types of online ads that are designed to match the form and function of the surrounding content. (Source: IAB Native Advertising Playbook)
• Misunderstanding: Sponsored content is always clearly labeled as such.
• Correction: While some sponsored content is clearly labeled, many examples of sponsored content are not, and users may be misled or manipulated by these ads. (Source: FTC guidelines on sponsored content)
• Misunderstanding: Native advertising is always transparent and clearly labeled.
• Correction: While some native ads are transparent and clearly labeled, many examples of native advertising are not, and users may be misled or manipulated by these ads. (Source: European Union's GDPR regulation)

Quick Application / Identification

Scenario: A social media platform displays a post from a user's friend that is actually a sponsored ad for a new product. The post is labeled as "sponsored," but the user is not sure what that means.

• Identify the concept: This is an example of native advertising because the ad is designed to match the form and function of the surrounding content (the user's friend's post).
• Correct answer: The post is an example of native advertising because it is designed to blend in with the surrounding content and is labeled as "sponsored."
• Explanation: This is an example of native advertising because it uses social media platforms to reach target audiences and is designed to match the form and function of the surrounding content.

Last?Minute Revision

• Native Advertising: Online ads that are designed to match the form and function of the surrounding content.
• Sponsored Content: Paid content that is created and promoted by brands.
• Advertorial: A type of advertising that is presented in a way that resembles editorial content.
• Native Ad Formats: Types of native ads that are designed to match the format of the surrounding content.
• Branded Content: Content that is created and promoted by brands.
• Influencer Marketing: A type of marketing that involves partnering with influencers or content creators to promote products or services.
• Content Marketing: A type of marketing that involves creating and distributing valuable, relevant, and consistent content to attract and retain a clearly defined audience.
• Transparency: The practice of clearly labeling sponsored content or native ads to avoid misleading users.
• Disclosure: The practice of clearly disclosing the source of sponsored content or native ads to avoid misleading users.
• Federal Trade Commission (FTC): A US government agency that regulates advertising and requires transparency and disclosure in sponsored content.
• European Union's General Data Protection Regulation (GDPR): A regulation that requires transparency and consent in online advertising and data collection.
• Algorithmic Transparency: The practice of providing users with information about how online algorithms are used to select and display content.
• Native advertising is not always clearly labeled: Many examples of native advertising are not transparent or clearly labeled, and users may be misled or manipulated by these ads.
• Sponsored content is not always clearly labeled: Many examples of sponsored content are not transparent or clearly labeled, and users may be misled or manipulated by these ads.
• Native advertising is not always transparent: Many examples of native advertising are not transparent or clearly labeled, and users may be misled or manipulated by these ads.