Report: 12% of native ads are not labeled
- A study of ads by MediaRadar found that 54% of native ads are labeled as "sponsored," while 12% have no label at all.
- The study found other terms are used to identify native ads: “promoted” (12%), “presented by” (6%), “provided by” (5%), and “brought to you by” (4%).
- Separate research conducted by Research Now for Contently found that 48% of U.S. internet users polled reported feeling "deceived" after realizing an article or video is sponsored content.
Native ads are an effective and growing format for marketers in a world rife with ad blocking. Native ads currently make up 56% of all display ad revenue, according to data from the Interactive Advertising Bureau (IAB), PwC and IHS, but BI Intelligence predicts that native advertising will account for 74% of all ad revenue by 2021.
The Federal Trade Commission made waves earlier this year by offering guidelines for native ad disclosures. The FTC guidelines specify that native advertising should be disclosed “in plain language that is as straightforward as possible.”