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

Sponsored Content: Ripe For A Consumer Backlash

SHARE:

chris-smutny“Data-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.

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.

Tagged in:

Must Read

Single continuous line drawing robot riding pencil rocket flying in the sky. Tech education and creativity. Future technology development. Artificial intelligence. One line design vector illustration

Q3: Omnicom’s Media Business Is Growing, But Is It Agent-Proof?

If AI agents can plan and buy media, who needs a holding company? Good question. It came up during Omnicom’s Q3 earnings on Thursday.

Netflix Touts New Measurement Capabilities As It Struggles With “Modest” Engagement Growth

Netflix’s revenue grew 12% YOY to $12.9 billion in Q3, which it maintains is in line with its forecast. Its ads business, however, is lagging slightly compared with expectations, causing Netflix to tweak its forecast for the rest of the year.

Apple Publishes Its Plan To Wipe Out Web Tracking

Apple is coming for identity resolution. WebKit’s latest tracking crackdown targets the infrastructure behind post-cookie IDs – and switching to a first-party setup won’t necessarily spare vendors.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters

AI Slop Sites Are On The Rise. Is Ad Tech Ready For Its New MFA Challenge?

Advertising supply chain intelligence company DecryptAds uncovered more than 2,100 AI-generated recipe sites that are monetized with programmatic ads and feature fabricated author profiles.

How Australian Home Lender Lendi Measures The Invisible Work Of AI

Most brands and businesses are trying to figure out how to improve their metrics when it comes to AI – and also what those metrics even are.

AI Startup Minerva Built An Agentic CDP, But Don’t Call It That

Minerva wants to turn fragmented customer data into something marketers can use, with AI agents doing the work behind the scenes.