Going Native: Can Consumers Recognize Native Advertising? Does it Matter?

36 Pages Posted: 25 Apr 2017

See all articles by David A. Hyman

David A. Hyman

Georgetown University Law Center

David J. Franklyn

Golden Gate University - School of Law

Calla Yee

Independent

Mohammad Rahmati

Sharif University of Technology

Multiple version iconThere are 2 versions of this paper

Date Written: 2017

Abstract

Native advertising, which matches the look and feel of unpaid news and editorials, has exploded online. The Federal Trade Commission has long required advertising to be clearly and conspicuously labeled, and it recently reiterated that these requirements apply to native advertising. We explore whether respondents can distinguish native advertising and “regular” ads from unpaid content, using 16 native ads, 5 “regular” ads, and 8 examples of news/editorial content, drawn from multiple sources and platforms. Overall, only 37% of respondents thought that the tested examples of native advertising were paid content, compared to 81% for “regular” advertising, with variation by platform, advertiser, and labeling. Modest labeling changes materially increased the number of respondents that correctly recognized that native ads are paid content – but even these improved results fell well short of those for “regular” advertising. We also explored labeling preferences and self-reported concern about native advertising. Our findings indicate that native advertising involves a significant risk of deception which self-regulation has not addressed.

Keywords: Native advertising, news, editorials, content, deception, deceptive, advertising, consumer

Suggested Citation

Hyman, David A. and Franklyn, David J. and Yee, Calla and Rahmati, Mohammad, Going Native: Can Consumers Recognize Native Advertising? Does it Matter? (2017). 19 Yale J.L. & Tech. 77 (2017); Univ. of San Francisco Law Research Paper. Available at SSRN: https://ssrn.com/abstract=2957956

David A. Hyman (Contact Author)

Georgetown University Law Center ( email )

600 New Jersey Avenue, NW
Washington, DC 20001
United States

David J. Franklyn

Golden Gate University - School of Law ( email )

536 Mission Street
San Francisco, CA 94105
United States

HOME PAGE: https://www.ggu.edu/shared-content/faculty/bio/david-franklyn

Calla Yee

Independent ( email )

No Address Available

Mohammad Rahmati

Sharif University of Technology

Tehran
Iran

Register to save articles to
your library

Register

Paper statistics

Downloads
173
rank
63,356
Abstract Views
1,122
PlumX Metrics