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The Effects of Disclosures to Help Consumers Differentiate Native Advertising From Other Content

Mon, May 29, 9:30 to 10:45, Hilton San Diego Bayfront, Floor: 4, Sapphire 400A

Abstract

As native advertising combines advertising with the look and feel of editorial and non-commercial content, it has raised concerns about its potential deceptiveness. This is specifically problematic within news media as native ads may go against journalism’s norms and values. Therefore, regulators such as the American Federal Trade Commission developed guidelines that oblige advertisers to clearly label native advertising as such so that consumers can differentiate advertising from editorial content. These labels, also referred to as disclosures of native advertising, can have many different forms, but often simply state ‘Sponsored’ or ‘Advertising’. This literature review provides an overview of the studies that examined the effects of disclosures of native advertising. It describes what is currently known about consumers’ awareness of disclosures and their ability to differentiate native advertising from other content. In addition, it explains how disclosures of native advertising can affect consumers’ processing of and responses to the advertising.

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