Warning to advertisers: the hard sell is out and good storytelling is in when it comes to so-called native advertising.
Nearly two-thirds of online news readers said they are more open to digital advertising that focuses on a story rather than selling a product, according to a study released Tuesday.
The study also found that consumers were more likely to welcome native ads — sponsored content from advertisers that blends into the journalism that surrounds it — on business and entertainment sites than they are to trust them on general news sites or publications.
In other findings, native advertising has more credibility if it appears on a site that the consumer already had a high degree of confidence in. The study, by the Interactive Advertising Bureau and public relations giant Edelman Berland, involved about 5,000 participants.
On business and entertainment sites sponsored content is seen by nearly half the respondents, 45 percent and 44 percent,respectively, as “enhancing the overall value of the Web site experience.”
News titles, however, have a much tougher sell with only 27 percent agreeing that sponsored content enhances the experience.
Sherrill Mane, senior vice president of research at IAB, said, “I was surprised how high the bar still is” for native ads on general news media.
Steve Rubel, executive vice president of global strategy and insights at Edelman said, “I think there are ongoing themes in business and entertainment that make it a little easier” for sponsored content to blend in.
“News sites may not have that luxury in today’s polarized environment. Could a liberal [native ad] story work on a conservative site?” he said. “Probably not.”
In the survey, native ads were deemed “least useful for generating new brand awareness” but were best suited for “established brands that seek to enhance and differentiate their image, deepen existing consumer relationships, [and] launch brand extensions.”
But the production of such ads can be more time consuming and expensive since they must, in a sense, be custom made for each site.