Blurred Lines: The New World of Native Advertising

Jeffrey A. Greenbaum

May 2015

What is Native Advertising?

Native Advertising - Examples• Ads in the social media news feed

• Sponsored search and listings

• Sponsored “editorial” content in physical and online publications (e.g., Huffington Post, BuzzFeed, etc.)

• Widgets (e.g., Outbrain)

• Sponsored programming (broadcast, online, etc.)

• Brand integration (e.g., “Coors Cold Hard Facts” on ESPN)

• Brand-financed feature films

“It’s when a piece of ostensibly normal content is stamped with tiny disclaimers . . . and then contains messages that are often clear endorsements”

-- John Oliver, “Last Week Tonight”

What's the Big Deal?

70% of people want to learn about products through content rather than advertising

People view native ads 53% more than banner ads

The same amount of time is spent reading editorial content as native advertising

Billions of dollars are being spent on native advertising and it’s increasing every year

What’s the Problem?

It’s probably still “advertising”

So, the same rules apply

“messages, means, and motives”

Consumers have a right to know that it’s advertising

It’s all about transparency

“disclosure of material connection”

Disclosures must be clear and conspicuous

They’re judged by their performance

Should you just call everything advertising?

Or does that create other problems?

Projects may require more than you can give (or get)

But who is responsible?

What about ownership and ongoing usage?

It's up for negotiation

What about the reaction?

It’s not just about legal

Thank you!Jeffrey A. Greenbaum(212) 826-5525jgreenbaum@fkks.com

This outline is presented in summary form and is not comprehensive or intended to address every situation. This outline is also not legal advice. Please consult your attorney for legal advice.