Recognizing Native Advertising and Its Challenge to Traditional Advertising

Abstract

Native advertising has continued to show its influence in the digital media market, as one of the representative online advertising types over time. Consequently, it has become highly significant for marketers and advertising participators. The impact has also been witnessed in the case of the market of native advertising, which has experienced a rising trend over the past years. Although the advertising industry and companies have advocated in support of native advertising, regulators and experts have signaled concerns regarding its transparency because its contents are designed based on the style and purpose of the media hosting. Through conducting a detailed review of the relevant literature, this study aims to define native advertising, trace its history, and discuss the close relationship between the young generation and native advertising. Meanwhile, the study illustrates that native advertising causes conceptual, ethical, and regulatory challenges. Further, the findings of the research demonstrate that the effectiveness of native advertising may be enhanced to a certain degree through imitating non-commercial content design, tone, and style. However, it may not be a long-term solution for advertisers to deal with a decreased advertising effectiveness. Therefore, there is a need for both advertisers and policymakers to investigate challenges posed by native advertising and find valuable solutions for improvements.