The Imitation Game - Examining the Effects of Native Advertising on Attitudes toward Publishers

Abstract: In recent years, native advertising - advertising that mimics the design, function and feel of a source's original content - has seen an increase in popularity among publishers that hope to counteract falling advertising revenues. Review of existing research indicates that consumers have difficulties recognizing the commercial intent of native advertisements. In addition, when recognition occurs, consumers exhibit more negative perceptions of content credibility. This study seeks to investigate the to date unexplored effects of native advertising on the publishers. This study examines the effects of disclosing native advertising through the use of contrasting background colors on advertising recognition, perceived deceptiveness and attitudes toward the publisher. The reasoning presented is based on theories regarding persuasion knowledge and critical processing indicating that readers who are aware that they are subjected to advertising will negatively evaluate content and sponsoring brand. A quantitative, questionnaire-based experiment, with 178 respondents, is conducted. The study tests the effects of two different disclosures, one with color background and one without, on participants' attitudes toward the publisher, sponsoring brand and content. Support for negative effects of native advertising recognition on attitudes toward publishers is found. In addition, the deceptive element of native advertising is confirmed, as well as the effectiveness of color background in communicating commercial intent.