Native and embedded advertising formats: Tensions between a lucrative marketing strategy and consumer fairness

Transparency of native advertising

Hence, while native advertising therefore seems both beneficial to marketers and content creators, the fairness of this advertising strategy to the audience has become an increasingly important and debated issue (Wojdynski and Evans, 2020). For instance, Taylor (2017) describes native advertising as the “black sheep” (p. 207) of marketing, as this technique contradicts typical ethical boundaries of the field. The moral understanding is that it is the fundamental right of a consumer to be aware of contact with persuasive content (Cain, 2011). Thus, the audience should get the chance to make an informed decision about how they process the information they are provided with. As recognition of persuasive intent typically triggers a set of coping mechanisms (Friestad and Wright, 1994), the audience should get the chance to unmistakably categorize native advertising as such in order to assure they are processing the information as they see fit. This is relevant for all audiences, yet the question of consumer fairness with respect to the youngest audiences (children and adolescents) becomes even more pressing (Naderer, Matthes, Marquart, and Mayrhofer, 2018). Of course, when recipients recognize the persuasive intent of covert advertising, they may feel annoyed, and this may backfire on marketers and content producers (Colliander and Erlandsson, 2015). This raises the question of whether there is or, better, whether there should be a secret to successful native advertising (Campbell and Marks, 2015).

In light of these concerns, regulators have already reacted to the circumstance that undisclosed covert advertising is not fair to consumers (European Commission, 2018; Federal Trade Commission, 2015). Hence, marketers are now obligated to disclose native advertising strategies (Boerman, Helberger, van Noort, and Hoofnagle, 2018). And while a few studies indicate that disclosing native advertising practices can have a positive effect on the audiences’ understanding of these persuasive strategies (Boerman, Willemsen, and Van Der Aa, 2017; De Jans, Cauberghe, and Hudders, 2019; Evans, Phua, Lim, and Jun, 2017; Hwang and Jeong, 2016; van Reijmersdal et al., 2016), others have questioned the effectiveness of such disclosures (Wojdynski and Evans, 2016). Regulators are therefore confronted with the dilemma of making sure their regulatory measures are successful in informing the audience, while simultaneously not going as far as prohibiting persuasive strategies altogether. Regulators therefore need to keep the balance between facilitating a fair playing field for both successful marketing strategies and consumer rights.

Disclosure effectiveness

Two contributions (Beckert, Koch, Viererbl, Denner, and Peter, 2020; Weitzl, Seiffert-Brockmann, and Einwiller, 2020) provide empirical research on the question of effective disclosure practices. In the complex online-media environment, the recognition of native advertising might not always be possible, even if a disclosure is present (Wojdynski and Evans, 2016). Thus, it is of crucial importance to reflect how disclosures are presented, what persuasive techniques the native advertising content employs, and which individual preconditions the audience members bring to the table. The first contribution by Weitzl and colleagues (2020) sheds light on the role of potential individual differences, such as a consumer’s own level of social media literacy, using an experimental design. Results indicate that measures aiming at disclosing the persuasive intent of native advertising can trigger a critical perception of native advertising techniques. This is fostered by prior social media literacy. The second contribution by Beckert and colleagues (2019) describes two experimental studies that examine the potential influence of how the persuasive message itself is presented impacts the effectiveness of the disclosure. Furthermore, Beckert et al. consider a long-lasting effect perspective on the outcomes of native advertising measures. Results indicate that disclosures are able to increase perceived persuasive intent. Yet, disclosure effects do not persist over time and remain unaffected by the way the persuasive message is presented.

Theoretical conceptualization of persuasion knowledge

Beyond those empirical studies, Borchers and Woelke (2020) add to the body of literature by examining the consumer’s perspective on covert advertising strategies using a novel theoretical conceptualization. They outline a constructivist perspective on native advertising and give implications for future examinations of native advertising practices.

Willingness to disclose native advertising practices

This special issue also sheds light on the content producer’s perspective of native advertising and disclosure practices, especially from the viewpoint of journalists and bloggers. A recent study indicates that influencers see disadvantages in employing ad disclosures and therefore often decide against using them (van der Goot, Zandbergen, and van Reijmersdal, 2018). Simultaneously, there is an ethical component of placing advertising content within the space of journalism, as this raises questions about journalistic autonomy (Carlson, 2015). In their contribution to this special issue, Hoffjann and Haidukiewicz (2020) address this topic by taking the producers’ perspective: They distinguish between traditional journalists and bloggers in Germany and examine their willingness to disclose native advertising. Their results indicate that even though bloggers rely on native advertising techniques on a more individual level, they are as willing as journalists to disclose native advertising.

Marketers’ perspective on native advertising practices

Along the same lines, this special issue also covers the perspective of marketers. In the age of digital and native advertising, companies do not only create advertising messages about their brands, but also actively invite users to create persuasive content themselves (e. g., Olenski, 2017). This type of advertising known as user-generated content is hardly ever recognized as a persuasive message by other users and hence may be an especially effective tactic to achieve marketers’ goals (Mayrhofer, Matthes, Einwiller, and Naderer, 2020). Yet, inviting users to create their own messages also means that companies lose control over their otherwise coordinated marketing strategy in some way. Thus, investigating the role of message (in)congruency is an important avenue of research in times of native advertising practices. Kirchenbauer (2020) therefore adds to the body of literature by examining ad (in)congruency between traditional advertising formats and social media marketing from a marketers’ point of view. Results indicate that incongruent messages can increase brand recall, while congruent messages create more positive brand-related thoughts. Hence, the marketers need to weigh which goals they aim to achieve.

Regulation and education regarding native advertising practices

As the last article, van Reijmersdal and Rozendaal (2020) bring in the important dimension of regulation and education. On the one hand, they reflect on how regulators should handle their responsibility when adequately informing consumers about the persuasive intent of native adverting practices. On the other hand, van Reijmersdal and Rozendaal also underline the important role of the consumer by means of media education. Thereby, they provide an outlook on future research avenues within the field of native advertising.