Native advertising[1] is a form of marketing that subtly promotes products or brands within the context of a user’s experience. It includes various formats such as promoted videos, images, articles, and music, along with publisher-produced brand[5] content and sponsored stories on social media[2]. Native ads often involve third parties and influencers, making them a cost-effective method for product promotion. It’s crucial for these ads to disclose their promotional intent clearly to prevent consumer[4] deception[3], following guidelines set by industry bodies like the Federal Trade Commission. Over time, native advertising has evolved to blend seamlessly with content, proving effective in drawing attention and influencing purchase decisions. Future trends highlight the importance of context, transparency, data, and collaboration in shaping audience responses.
Native advertising, also called sponsored content, partner content, and branded journalism, is a type of paid advertising that appears in the style and format of the content near the advertisement's placement. It manifests as a post, image, video, article or editorial piece of content. In some cases it functions like an advertorial. The word native refers to this coherence of the content with the other media that appear on the platform.
These ads reduce a consumers' ad recognition by blending the ad into the native content of the platform, even if it is labeled as "sponsored" or "branded" content. Readers may have difficulty immediately identifying them as advertisements due to their ambiguous nature, especially when deceptive labels such as "From around the web" are used. Since early 2000s, the US FTC has required content that is paid for by advertisers and not created by the publisher as content to be labeled. There are different terms advertisers can use but in all cases the ad content must be clearly labeled as ad. According to the FTC: "The listings should be clearly labeled as such using terms conveying that the rank is paid for."
Some studies have linked native advertising to ad-evoked effects, such as increased attention to an ad, reduced ad avoidance, increase purchase intention, and favorable attitude toward a brand. These types of integrated advertisements allow businesses to be associated with content that is already being consumed.
Product placement (embedded marketing) is a precursor to native advertising. The former places the product within the content, whereas in native marketing, which is legally permissible in the US to the extent that there is sufficient disclosure, the product and content are merged.