Home Data-Driven Thinking Sponsored Content: Ripe For A Consumer Backlash

Sponsored Content: Ripe For A Consumer Backlash

SHARE:

chris-smutnyData-Driven Thinking” is written by members of the media community and contains fresh ideas on the digital revolution in media.

Today’s column is written by Chris Smutny, vice president of strategy at Sojern.

As a marketer, my goal is to make ads as relevant as content so consumers say, “Wow. That was really helpful.” This would satisfy dual goals of increasing my brand’s sales and delivering value to the consumer via advertising.

This shouldn’t be mistaken with dressing up advertising to look like content. Sponsored content is one of the hottest online advertising trends right now, but unfortunately, many are engaging in a good-intentioned but dangerous race to hide advertising as content. If the industry continues down this path at its current speed, I fear a severe consumer backlash and a new regulatory landscape.

Making an ad as relevant as content is very different from making an ad look like content. The former is a legitimate aspiration and benefits both consumers and advertisers. The latter is disingenuous in its goal and methods, specifically in the way ads are disguised as content. While it serves the first objective of increasing brand sales, some native advertising achieves it through deception.

In America, we have an almost mythical respect for certain protected rights and spaces, like the right to free speech, the separation of church and state and the divide between the editorial and business sides of the press. The wall separating the editorial and business departments has arguably never been more porous than it is today, even at longer-lived publications like The Atlantic and The New York Times, as well as newer outlets, such as BuzzFeed and Huffington Post.

For example, consider this piece below from The Atlantic. Many in the advertising industry would clearly note the “Sponsor Content” tag above the Scientology “article.” But we are not the general population. Our plus-ones, children, parents and friends outside the industry may not be as informed – or cynical – as we are.

atlantic

Proponents argue banners are broken and note the problem with ad blindness. The answer to ad blindness isn’t to deceive, but to make a better ad. Companies like Criteo demonstrate that by showing a more relevant offer to the consumer, it can increase interaction rates dramatically over traditional approaches.

Other arguments: Many native implementations are useful to consumers, drive awareness of great products and generate revenue for terrific companies. I get that. But that’s not always the case.

Subscribe

AdExchanger Daily

Get our editors’ roundup delivered to your inbox every weekday.

The IAB’s self-regulatory guidelines say, “Regardless of context, a reasonable consumer should be able to distinguish between what is paid advertising vs. what is publisher editorial content.”

And as an industry, I think we are failing to meet this threshold. We should have learned from recent history and the early days of search, when companies did their best to make the divide between the algorithmic and paid listings as faint as possible. At one point, this dividing line became too faint until the FTC stepped in.

Will we learn from the past and prevent a similar fate for native advertising? I hope so. The last thing I need is for my mom to tell me she’s become a Scientologist after reading an excellent article about David Miscavige in The Atlantic.

Follow Sojern (@Sojern) and AdExchanger (@adexchanger) on Twitter.

Must Read

APIs Have Had Their Moment, But MCPs Reign Supreme In The Agentic Era

On Tuesday, Infillion launched fully agentic media execution platform built on MCP, marking a shift from the programmatic to the agentic era.

Albertsons Launches New Off-Site Click-to-Cart Tech

The grocery chain Albertson’s is trying to reduce the time and number of clicks it takes to add an item to an online shopping cart. It’s new click-to-cart product should help.

Pinterest Acquires CTV Startup TvScientific (Didn’t CTV That Coming)

Looks like Pinterest has its eyes – or its pins, rather – fixed on connected TV.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters
Kelly Andresen, EVP of Demand Sales, OpenWeb

Turning The Comment Section Into A Gold Mine

Publisher comment sections remain an untapped source of intent-based data, according to Kelly Andresen, who recently left USA Today to head up comment monetization platform OpenWeb’s direct sales efforts.

Comic: Shopper Marketing Data

Shopify Launches A Product Network That Will Natively Integrate Items From Across Merchants

Shopify launched its latest advertising business line on Wednesday, called the Shopify Product Network.

Criteo Lays Out Its AI Ambitions And How It Might Make Money From LLMs

Criteo recently debuted new AI tech and pilot programs to a group of reporters – including a backend shopper data partnership with an unnamed LLM.