Monday, October 27, 2014

Native Ads ... effective deceit or effective marketing?



In our course we have discussed the various forms of advertisements marketers use to attract consumers. A key form of discussion has been whether these forms are effective or not in impacting consumer habits, and attracting new consumers. In essence, while video and other forms have proven successful, advertising methods such as banner ads are much less so.  On the other hand, native advertising, advertising that looks like content, has been proven to be a much higher success. While it is successful, the question remains whether this form of advertising should be regulated, and if it is unethical.

While marketers would like to profess how the unethical element is far from true, the fact is that this form of advertising has become so successful because it is in essence tricking the consumer into believing ads are content. Interestingly, the way we discussed Forbs diluting its brand with the high incorporation of banner ads etc., I believe the same negative effect may begin to happen on news sites promoting native advertising. How much can the consumer trust a brand if there is no line or distinction between an advertisement and journalistic content?

This lack of editorial influence was discussed quite comically on Last Week Tonight with John Oliver: Native Advertising (HBO) http://www.youtube.com/watch?v=E_F5GxCwizc.  In the piece he empathically describes the eroding of trust between the consumer and the journalist.  While I believe this is most definitely true in news sources, it will be interesting to see the impact on social media sites. Instagram and Facebook are two large examples of companies who are putting a large ad spend, and push for native advertising. Meanwhile, Snapchat, which recently launched advertisements, is differentiating itself for the very reason discussed by John Oliver, with strong statements and a promise to not publish native ads.

It won’t be long before we see which strategy works out best, and how impacted the consumer feels (or rejects) the “deceit” of a native ad.

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