A 'Faustian Pact'?: Native Advertising and the Future of the Press

Abstract

for very valuable conversations and comments. Thanks are also due to Mitchell Retelny and Anne Meyers for able research assistance at the last minute. All remaining errors are, regretfully, my own. ARIZONA LAW REVIEW for a powerful, independent, and fearless press. Still, because native advertising is here to stay, admittedly imperfect responses must be explored. In that spirit, this Article proposes three solutions: (1) "voice priming": designing sponsorship disclosure at the per-ad level in close alignment with results of rigorous empirical research regarding consumers' cognitive and perceptual responses to labeling; (2) "surveillance-enabling": adopting additional, corporate-level disclosure designed to highlight advertiser identity and spending in order to aid public oversight over the editorial independence of news organizations; and (3) "collective standardsetting": addressing structural impediments to collective action by news organizations to promote collective strategies for effective self-regulation in the deployment of native advertising. These solutions seek to promote a diverse Fourth Estate that sees itself as charged with engaging in accountability journalism. Although it is a closer question with respect to some kinds of native advertising, sponsorship disclosure requirements are unlikely to run afoul of the First Amendment. If they are deemed to do so, however, what might be seen as a free speech "victory" would be Pyrrhic indeed-ironically serving as the nail in the coffin of the press's distinct status. Recognizing this reality should create significant self-regulatory incentives.

News in an Era of Content Confusion: Effects of News Use Motivations and Context on Native Advertising and Digital News Perceptions

“…The practice of native advertising has become ubiquitous among mainstream news organizations in the U.S. (Gerth, 2017;Levi, 2015) and is spreading globally (Ferrer Conill, 2016). In response to the vexing problems of annoying consumers with disruptive advertisements that "clutter" an editorial medium (Ha, 1996) as well as plunging publisher advertising revenue, native advertising seeks to blend in with, or appear "native" to, the online platform on which it appears.…”

Blurring the Lines: Market-Driven and Democracy-Driven Freedom of Expression

“…Native advertising is "stealth marketing, " (Goodman 2006) 2 which involves integrating advertisements into content in a way that conceals their status as advertisements. Critics claim native advertising is deceptive and threatens to undermine journalistic integrity (Levi 2015). Defenders claim any deception is addressed by requiring disclosures and that further regulation is unwarranted (Sheehan 2016).…”

“…This incident illustrates native advertising's potential to both deceive readers and to poison the well of journalistic credibility. Native advertising is attracting legal attention as well (Levi 2015). The Federal Trade Commission recently published guidelines for the practice (Barr 2015).…”

Content Discovery Advertisements: An Explorative Analysis

“…Native ads include sponsored content, branded content, content marketing, and related content [2]. These native ads tend to be more desirable because of the way they are displayed which makes them attracted to companies and users.…”

“…These native ads tend to be more desirable because of the way they are displayed which makes them attracted to companies and users. In 2013 it was noted that 75% of the Online Publishers Association used Native ads [2]. Content recommendation/discovery platforms are new means of advertisements on the webpages.…”