Negative Consequences of Storytelling in Native Advertising

Abstract

Native advertising and storytelling are both increasingly popular advertising strategies. This research explores the effectiveness of storytelling in a native advertising context on social media. While most research recommends the use of stories as a way to build trust and relationships with consumers, the current research suggests that in the form of native ads on social media, narratives may be less effective when compared to informational native ads. Two studies find that even when advertising cues such as disclosure labels and brand presence are prominently located, consumers are less likely to recognize the advertising nature of narrative native ads when compared to informational native ads. Lower levels of advertising recognition are associated with increased perceptions of manipulative intentions by the advertiser, which has a negative influence on consumers' attitudes toward the ad. The findings suggest that native ads that clearly communicate their advertising nature through cues such as an informational execution, high brand presence, and prominent disclosure labeling are more effective than a narrative execution style.