Native advertising is the new paywall in media economics - but is it here to stay?

Many digital publishers have placed it at the heart of their business strategy - but there are concerns over transparencyIn 1917, the American Federal Trade Commission settled a case with the Muensen Speciality Co., over an ad for its vacuum cleaner, which it presented as a favourable newspaper review. It was the first case where "advertorials" (or "native advertising" as they are now known) were identified by regulation in the US. Today you might expect to see something similar, but in the form of a viral link circulated round your social network, entitled "13 vacuum cleaners that suck in the wrong way, and one that doesn't".Native advertising is not a new trend for 2014. It is already hotter than a delicious burrito from Chipotle, or a summer cruise on a luxurious Royal Caribbean liner. The Federal Trade Commission has however become so concerned about the new challenges of the digital advertorial that in December it organised a one-day workshop on the subject called Blurred Lines. It was not clear whether this was a meta-comment on product placement, or a paid ad for Robin Thicke's popular dance harassment anthem (perhaps the FTC should have made this more transparent).It is already clear, though, that native advertising is the new paywall in media economics. An opportunity for new wealth creation coupled with almost as much anxiety over whether its implementation will be of long-term benefit or detriment to the media it supports. A stream of money controlled by... Continue reading at 'The Guardian'

[ The Guardian | 2014-01-05 00:00:00 UTC ]

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