12/23/2015

NativeAdvertising:AGuideforBusinesses|FederalTradeCommission

Native Advertising: A Guide for Businesses

TAGS: AdvertisingandMarketing AdvertisingandMarketingBasics Endorsements
OnlineAdvertisingandMarketing
Marketersandpublishersareusinginnovativemethodstocreate,format,anddeliverdigitaladvertising.
Oneformisnativeadvertising,contentthatbearsasimilaritytothenews,featurearticles,product
reviews,entertainment,andothermaterialthatsurroundsitonline.Butasnativeadvertisingevolves,are
consumersabletodifferentiateadvertisingfromothercontent?

Marketersandpublishersareusinginnovativemethodstocreate,format,anddeliverdigitaladvertising.One
formisnativeadvertising,contentthatbearsasimilaritytothenews,featurearticles,productreviews,
entertainment,andothermaterialthatsurroundsitonline.Butasnativeadvertisingevolves,areconsumers
abletodifferentiateadvertisingfromothercontent?
TheFederalTradeCommissionActprohibitsdeceptiveorunfairpractices.ItstheFTCsjobtoensurethat
longstandingconsumerprotectionprinciplesapplyinthedigitalmarketplace,includingtonativeadvertising.
TheFTChasissuedanEnforcementPolicyStatementonDeceptivelyFormattedAdvertisementsthatexplains
howtheagencyappliesestablishedtruthinadvertisingstandardsinthiscontext.ThisGuideforBusinesses
supplementstheEnforcementPolicyStatementbyofferinginformalguidancefromFTCstafftohelpcompanies
applythePolicyStatementindaytodaycontextsindigitalmedia.
ThefirstpartofthisGuidesummarizestheconsumerprotectionprinciplesthatserveasthefoundationforthe
EnforcementPolicyStatement.Thesecondpartincludesexamplestoexplainhoweffectivedisclosurecanhelp
preventdeception.Thethirdpartfeaturesstaffguidanceonhowtomakeclearandconspicuousdisclosures
withintheformatofnativeadvertising.Ofcourse,thisGuidecantcovereveryissueassociatedwithnative
advertising.NordoesitprovideasafeharborfrompotentialliabilityunderSection5oftheFTCAct.These
examplesareonlygeneralguidanceforadvertisers.

I. Established principles that support the FTCs

approach to native advertising
UndertheFTCAct,anactorpracticeisdeceptiveifthereisamaterialmisrepresentationoromissionof
informationthatislikelytomisleadtheconsumeractingreasonablyinthecircumstances.Amisrepresentation
ismaterialifitislikelytoaffectconsumerschoicesorconductregardinganadvertisedproductorthe
advertisingfortheproduct.
https://www.ftc.gov/tipsadvice/businesscenter/guidance/nativeadvertisingguidebusinesses

1/11

12/23/2015

NativeAdvertising:AGuideforBusinesses|FederalTradeCommission

Inevaluatingwhetheranadisdeceptive,theFTCconsidersthenetimpressiontheadconveystoconsumers.
Becauseadscancommunicateinformationthroughavarietyofmeanstext,images,sounds,etc.theFTC
willlooktotheoverallcontextoftheinteraction,notjusttoelementsoftheadinisolation.Putanotherway,
bothwhattheadsaysandtheformatitusestoconveythatinformationwillberelevant.Anyclarifying
informationnecessarytopreventdeceptionmustbedisclosedclearlyandprominentlytoovercomeany
misleadingimpression.
Abasictruthinadvertisingprincipleisthatitsdeceptivetomisleadconsumersaboutthecommercialnatureof
content.Advertisementsorpromotionalmessagesaredeceptiveiftheyconveytoconsumersexpresslyorby
implicationthattheyreindependent,impartial,orfromasourceotherthanthesponsoringadvertiserinother
words,thattheyresomethingotherthanads.Whywoulditbematerialtoconsumerstoknowthesourceofthe
information?Becauseknowingthatsomethingisanadlikelywillaffectwhetherconsumerschoosetointeract
withitandtheweightorcredibilityconsumersgivetheinformationitconveys.
Overtheyears,theFTChasbroughtmanycaseschallengingtheformatofadsasdeceptive.Forexample,the
Commissionhastakenactionagainstadsthatdeceptivelymimickedtheformatofnewsprogrammingor
otherwisemisrepresentedtheirsource.Othercasesfocusedonmisleadingdooropenerspromotionswitha
formatthatdeceivedconsumersaboutthenatureofthetransactionforexample,telemarketerswho
misleadinglysuggestedtheywerecallingonbehalfofaconsumerscreditcardcompanyorbank.(The
Commissionhasheldthatwhenthefirstcontactbetweenasellerandabuyeroccursthroughadeceptive
practice,thelawmaybeviolatedeveniftheconsumerlaterfindsoutthetruth.)Or,astheFTCEndorsement
Guidesestablish,advertisersuseofthirdpartyendorsementsmaybedeceptiveifthereisanundisclosed
materialconnectionbetweentheadvertiserandtheendorseronethatmightmateriallyaffecttheweightor
credibilityoftheendorsement.TheFTCconsidersmisleadinglyformattedadstobedeceptiveregardlessof
whethertheunderlyingproductclaimsthatareconveyedtoconsumersaretruthful.
Theparticularformsnativeadvertisingtakesinthedigitalmarketplacemaybenew,buttheFTCsEnforcement
PolicyStatementmakesclearthattheFTCappliesthesametruthinadvertisingprinciplesithasusedfor
decadestoevaluatewhethertheformatofanadisdeceptive.Inthecontextofnativeadvertising,ifthesource
ofthecontentisclear,consumerscanmakeinformeddecisionsaboutwhethertointeractwiththeadandthe
weighttogivetheinformationconveyedinthead.However,anadisdeceptiveifitpromotesthebenefitsand
attributesofgoodsandservices,butisnotreadilyidentifiabletoconsumersasanad.Thus,asthePolicy
Statementexplains,theFTCwillfindanadsformatdeceptiveiftheadmateriallymisleadsconsumersaboutits
commercialnature,includingthroughanexpressorimpliedmisrepresentationthatitcomesfromapartyother
thanthesponsoringadvertiser.
Whatdobusinessesneedtoknowtoensurethattheformatofnativeadvertisingisnotdeceptive?The
EnforcementPolicyStatementexplainsthelawindetail,butitboilsdowntothis:
1. FromtheFTCsperspective,thewatchwordistransparency.Anadvertisementorpromotional
messageshouldntsuggestorimplytoconsumersthatitsanythingotherthananad.
2. Somenativeadsmaybesoclearlycommercialinnaturethattheyareunlikelytomisleadconsumers
evenwithoutaspecificdisclosure.Inotherinstances,adisclosuremaybenecessarytoensurethat
consumersunderstandthatthecontentisadvertising.
3. Ifadisclosureisnecessarytopreventdeception,thedisclosuremustbeclearandprominent.

II. Examples of when businesses should disclose

https://www.ftc.gov/tipsadvice/businesscenter/guidance/nativeadvertisingguidebusinesses

2/11

12/23/2015

NativeAdvertising:AGuideforBusinesses|FederalTradeCommission

that content is native advertising

Indigitalmedia,nativeadsoftenresemblethedesign,style,andfunctionalityofthemediainwhichtheyare
disseminated.Adsmayappearonapagenexttononadvertisingcontent.Examplesincludenewsorcontent
aggregatorsites,socialmediaplatforms,ormessagingapps.(TheEnforcementPolicyStatementreferstoa
pagelikethatasapublishersite.)Inotherinstances,adsareembeddedinentertainmentprogramming,such
asprofessionallyproducedandusergeneratedvideosonsocialmedia.Stillotherexamplesincludenative
advertisinginemail,infographics,images,animations,andvideogames.
Whenanativeadappearsonthemainpageofapublishersiteorisrepublishedinothermedia,itcommonly
consistsofaheadline,oftencombinedwithathumbnailimageandashortdescription,which,ifclickedor
tapped,leadstoadditionaladvertisingcontent.UnderFTClaw,advertiserscannotusedeceptivedooropeners
toinduceconsumerstoviewadvertisingcontent.Thus,advertisersareresponsibleforensuringthatnativeads
areidentifiableasadvertisingbeforeconsumersarriveatthemainadvertisingpage.Inaddition,nomatterhow
consumersarriveatadvertisingcontent,itmustnotmisleadthemaboutitscommercialnature.
Inassessingwhetheranativeadpresentedonthemainpageofapublishersiteisrecognizableasadvertising
toconsumers,advertisersshouldconsidertheadasawhole,andnotjustfocusonindividualphrases,
statements,orvisualelements.Factorstoweighincludeanadsoverallappearancethesimilarityofitswritten,
spoken,orvisualstyleorsubjectmattertononadvertisingcontentonthepublishersiteonwhichitappearsand
thedegreetowhichitisdistinguishablefromothercontentonthepublishersite.Thesameassessmentapplies
toanyclickortapintopagethepageonwhichthecompleteadappears.
Example1
TheWingedMercuryCompanysellsrunningshoes.Anadforthecompanysflagshipshoeappearsona
financialnewssite.Theadcontainsanimageoftheshoe,theheadlineRunFast,RunSmart,Run
WingedMercury,andahyperlinktolearnmoreaboutWingedMercuryshoesinnovativeshock
absorption.Thecolorscheme,font,andgraphicsoftheadlookliketheformatofthefinancialnewsthat
appearsonthesite.However,thesloganRunFast,RunSmart,RunWingedMercurytogetherwiththe
messagetolearnmoreaboutWingedMercuryshoesshockabsorptionlikelyconveytoconsumersthe
commercialnatureofthecontent.Inaddition,thesubjectmatteroftheaddifferssubstantiallyfromthe
financialnewsonthesite.Therefore,aspecificdisclosurethatthecontentisanadisprobablynot
necessary,absentextrinsicevidencetothecontrary.
Example2
FitnessLife,anonlinehealthandfitnessmagazine,featuresarticlesaboutexercise,trainingadvice,and
productreviews.AnarticleonFitnessLifesmainpageistitledThe20MostBeautifulPlacesto
Vacation.Thearticledisplaysimagesinascrollingcarouselofbeautifulspotsforfitnessenthusiaststo
visit.TheWingedMercuryCompanypaidFitnessLifetocreatethisarticleandpublishitonFitness
Lifessite.ThearticlesaysitisPresentedByWingedMercuryandincludesanimageofthecompanys
logo.AlthoughWingedMercuryssponsorshipofthearticleisaformofadvertising,thearticleitselfis
not,asitdoesnotpromoteanyofWingedMercurysproducts.Itonlycontainsimagesofplaceswhere
readersincludingpotentialWingedMercurycustomersmightliketovisit.Thus,thearticledoesnot
needtobeidentifiableasanadbeforeorafterconsumersclickintoit.
Example3
Akitchencabinetcompanypaidanonlinelifestylemagazine,StylingHome,tocreateandpublishan
articleentitled,10MustHavesforaGreatKitchen.Thearticle,whichdisplaysaseriesofimages
depictingwelldesignedkitchens,appearsinthesamelayoutasotherarticlesontheStylingHomesite.
https://www.ftc.gov/tipsadvice/businesscenter/guidance/nativeadvertisingguidebusinesses

3/11

12/23/2015

NativeAdvertising:AGuideforBusinesses|FederalTradeCommission

Mostoftheimagesinthearticledepictandpromotethesponsoringadvertisersproducts.Thus,the
articleisanadvertisement.Theadsformat,however,islikelytomisleadconsumerstobelieveitisan
ordinaryStylingHomearticleandreflectstheindependentviewsoftheStylingHomewriter,andnotthose
ofthesponsoringadvertiser.Therefore,aclearandprominentdisclosureofthearticlescommercial
natureisnecessary.
Themoreanativeadissimilarinformatandtopictocontentonthepublisherssite,themorelikelythata
disclosurewillbenecessarytopreventdeception.Furthermore,becauseconsumerscannavigatetothe
advertisingwithoutfirstgoingtothepublishersite,adisclosurejustonthepublisherssitemaynotbe
sufficient.Inthatinstance,disclosuresareneededbothonthepublisherssiteandtheclickortapintopageon
whichthecompleteadappears,unlesstheclickintopageisobviouslyanad.
Example4
TheWingedMercuryCompanydisseminatesanadonFitnessLife,theonlinemagazinedescribedin
Example2.Theadissimilarinformatandcontenttoregulararticlesonthesite.TheheadlineRunning
GearUp:MistakestoAvoidappearsnexttoaphotoofarunner.Inadditiontoothertraining
suggestions,thearticlerecommendsWingedMercuryshoesforinjuryprevention.Consumerscan
accessthearticleeitherfromtheFitnessLifemainpageordirectlywithoutviewingthatpage.Inthis
instance,consumersarelikelytoconcludethatthearticlewaswrittenbyaFitnessLifejournalistand
reflectsthejournalistsindependentviews.Topreventconsumerdeception,aclearandprominent
disclosureoftheadscommercialnatureonthemainpageofthepublisherssiteisnecessary.In
addition,becauseconsumerscanaccessthearticlewithoutclickingthroughfromtheFitnessLifemain
page,theadonthatclickintopagealsoshouldbeclearlyandprominentlyidentifiedascommercial.
Example5
FitnessLifepublishesanarticleentitledThe20MostBeautifulPlacestoVacation.Nosponsoring
advertiserpaidFitnessLifetopublishthearticle.However,aresorthotelpaysFitnessLifetodisplaya
photoofitsbeachresortasthetwentyfirstimagedisplayedinthearticle.Thephotohasthesamelook
andfeelastheimagesfeaturedinthearticle.ThereisnoneedtodisclosetoconsumersontheFitness
Lifemainpagethatthearticleisaccompaniedbyadvertising.However,becausethephotoappearstobe
partofthearticleratherthananadvertisement,aclearandprominentdisclosureofthephotospaid
natureontheclickintopageislikelynecessary.
Thedigitalmarketplaceoffersalternativewaysforadvertiserstodisseminatecontenttoconsumers,including
thingslikenewsfeedsandcontentrecommendationwidgets.Thesameprinciplesoftransparencyand
disclosureapply.
Example6
Newsbyisanonlinemagazinefeaturingstoriesabouthealth,technology,science,andbusiness.A
headlinepublishedinNewsbysfeedreadsMakingCleaningFun:HowTechnologyHasChanged
Housekeepingwiththesubheading,VacuumCleanersareaspopulartodayaswhenfirstintroducedin
the1800s.Thetextandanaccompanyingimageareformattedlikethoseoftheotherarticlesin
Newsbysfeedand,iftapped,leadtoaninfographicwithfactsaboutvacuumcleaners,includingalistof
thecoolestinnovations.OneofthelistedinnovationsisDirtPulverizertechnology,whichpurportedly
notonlypicksupdirt,butalsocleanstheair.AppliancecompanyMachineCleanVacuums,whichisthe
exclusivesellerofDirtPulverizervacuums,paidNewsbytocreateandpublishthearticleonitssite.
WhenviewedinthefeedofNewsbyssite,consumersarelikelytointerprettheMachineCleanVacuums
adasanindependentstoryimpartiallyreportingoninformationrelatingtovacuumcleaners,andnotanad
developedandpublishedonbehalfofasponsoringadvertiser.Thus,effectivedisclosuresinforming
https://www.ftc.gov/tipsadvice/businesscenter/guidance/nativeadvertisingguidebusinesses

4/11

12/23/2015

NativeAdvertising:AGuideforBusinesses|FederalTradeCommission

consumersoftheadscommercialnaturebothinthesitesfeedandontheclickintoinfographicare
necessarytopreventdeception.
Example7
Acontentrecommendationwidgetincludedondifferentpublishersitesdisplayslinkstoexternalpages.
OnesiteonwhichthesethirdpartylinksareplacedisNewsby.OntheNewsbysite,theselinksare
formattedtolooklikenewsheadlinesandaregroupedtogetherinaboxwithheadingslikeMoreContent
forYou,orFromAroundtheWeb.OneoftheheadlinesappearingintheboxisfortheWingedMercury
addescribedinExample4,RunningGearUp:MistakestoAvoid.ThesimilarityoftheWingedMercury
adsformattothetypeofheadlinesNewsbypublishesonitssite,combinedwithphraseslikeMore
ContentforYou,orFromAroundtheWeb,islikelytoleadconsumerstobelieveitisanindependent
newsstory,andnotfromthesponsoringadvertiser.Thus,beforeconsumersclicktoaccesstheWinged
MercurycontentontheFitnessLifesite,aclearandprominentdisclosureisnecessarytoinformthemof
itscommercialnature.AsdiscussedinExample4,theclickintopageontheFitnessLifesitealso
shoulddisclosethecommercialnatureofthecontent.
Example8
AnarticlepublishedinStylingHome,theonlinelifestylemagazinereferredtoinExample3,reviews
familyvehiclesandrankstheNuvoTrekasthebesthybrid.Thecarcompanythatmanufacturesthe
NuvoTrekdidnotpayStylingHometopublishtheoriginalarticle,butwantstopromotethearticle,given
thefavorablereviewofitscar.Thecarcompanypaysacontentrecommendationwidgettointegratea
linktothearticleintoapopularcarmagazinessite.Thearticleitselfisnotadvertising.However,thecar
companysdisseminationofthearticlethroughthecontentrecommendationwidgetisaformof
advertising,andthusthecompanyhasanobligationtoensurethatanyclaimsthearticleconveysabout
itscararetruthful,notmisleading,andsubstantiated.Also,totheextentthatthearticleheadlines
presentationonthesitemisleadsconsumerstobelievethatalinktothecontentisincludedorfeatured
basedontheindependentjudgmentofthecarmagazineseditors,andnotbasedonpaymentbythe
sponsoringadvertiser,afailuretoeffectivelydiscloseitspaidnatureislikelydeceptive.
Nativeadsalsocanbeintegratedintocontent,includingentertainmentprogrammingandvideogames.Insome
instances,consumersarelikelytounderstandthatasponsoringadvertiserpaidfortheproductintegration.In
otherinstances,adisclosuremaybenecessarytoavoiddeceivingconsumers.
Example9
Avideogameimmersesaplayerinavirtualworld.Whileexploringpartofthevirtualworld,aplayersees
billboardsadvertisingactualproducts.Themarketersoftheadvertisedproductspaidthegamedesigners
toincludetheadsinthegame.Thatbillboardsareadvertisementsisapparenttoconsumers.Tothe
extentthatthebillboardsareforactualproducts,consumersarelikelytoattributetheadstothe
sponsoringadvertisersandnodisclosureisnecessary.However,thesponsoringadvertiserswouldbe
liableforanydeceptiveproductclaimsonthebillboards.
Example10
ThesamevirtualworldgameinExample9integratesbrandedproductsinotherwaysforexample,game
characterswearaspecificsunglassbrand,drinkaparticularbrandofbeverage,andpatronizeaparticular
donutshop.Thesponsoringadvertiserspaidthegamedevelopertoincludetheirbrandedproductsinthe
game.However,thegameconveysnoobjectiveclaimsaboutthevariousbrandedproducts.Even
thoughconsumersmaynotrealizethatthesponsoredadvertiserspaidfortheirbrandedproductsto
appear,disclosureofthispaidproductplacementisnotnecessarytopreventconsumerdeception
becausewhetherthebrandedproductsappearinthegamebecauseofpaymentbythesponsoring
https://www.ftc.gov/tipsadvice/businesscenter/guidance/nativeadvertisingguidebusinesses

5/11

12/23/2015

NativeAdvertising:AGuideforBusinesses|FederalTradeCommission

advertiserorbecauseofthevideogamedeveloperscreativejudgmentisnotlikelytobematerialto
consumers.
Example11
Agameapptestsplayersskillstosurviveinthewildernessandoffersachoiceofsuppliesand
equipmentineachgamephase.Whenplayerstaptomakeachoice,aboxappearscontaininga
selectionofitemsforexample,aflashlight,arope,andahatchet.Eachitemisaccompaniedbya
shortmessageforexample,thephraseLightyourpathwiththeflashlight.Amongtheitemsplayers
canselectisabarofsoapidentifiedbybrandnamewiththetextCleanup.Iftapped,thesoapicon
takestheplayeroutofthegameandintothesoapmanufacturersbrandedgameapp.Basedon
consumerscustomaryuseofthegameandthesimilarityofthesoaptootheritemsplayerscanselectin
thegame,consumersmightnotrecognizetheiconasanadbeforetappingandleavingthegame.
Becausetheinappadsformatmisleadsconsumersinthisrespect,aclearandprominentdisclosure
informingthemoftheiconscommercialnatureisnecessarybeforeconsumerstaponit.
Example12
Onitswebsite,ahomeimprovementTVshowfeaturesdoityourselfvideoshostedbyanexpertbuilder
whoprovidesadviceonhomeprojects.Astainmanufacturer,ZYXPaints,paystheshowtoproduceand
publishonthehomeimprovementshowssiteavideoonbuildingawooddeck.Inthevideo,theshows
expertbuilderusesaZYXPaintsstainandrecommendsittoprotectandmaintainthedeck.Theads
lookandfeelcloselyresemblesothervideospostedonthehomeimprovementshowssite,which
customarilyareunpaid.Inthissituation,consumersarelikelytoperceivethevideoasindependent
contentreflectingtheimpartialopinionoftheexpertbuilderhostortheshowswriters,andwouldnotlikely
attributeittothesponsoringadvertiser.Aneffectivedisclosureinformingconsumersofthevideos
commercialnaturebeforetheyplayitisnecessarytopreventconsumerdeception.
Example13
InsteadofthevideodescribedinExample12,thehomeimprovementshowispaidbyZYXPaintsto
createandpublishontheshowssiteavideothatshowstheexpertbuilderhostusingZYXPaintstainon
thedeck.However,ratherthantheexpertbuilderexpresslyrecommendingtheproducttoprotectand
maintainthedeck,thecamerazoomsinontheproductslabel.Whetheraneffectivedisclosureinforming
consumersofthevideoscommercialnaturewouldbenecessarydependsuponreasonableconsumer
expectations.Inthisparticularsituation,consumerswouldlikelyinterprettheuseofthebrandedstain
producttobetheexpertrecommendationandopinionoftheexpertbuilderhostortheshowswriters,
ratherthanapaidinclusion.Inthatcase,aclearandprominentdisclosureofthevideoscommercial
natureisnecessarybeforeconsumersplayit.
Indigitalmedia,consumerscanencounternativeadsinawidevarietyofsettings,includinginsocialmediaand
email.Insomecases,advertisersalsofacilitatetherepublicationorsharingofnativeadsbyothers,for
example,byincludingsocialmediaplugins.Inevaluatingwhetherconsumersarelikelytounderstandanative
adisadvertising,itisimportantthatadvertisersconsidertheparticularcircumstancesinwhichnativeadsare
presentedtoconsumers.Thesecircumstancesincludeconsumersordinaryexpectationsbasedontheirprior
experiencewiththemediainwhichtheadsappear,aswellashowtheyconsumecontentinthatmedia.
Example14
ThesameZYXPaintsvideodescribedinExample12isinsertedintouserscontentstreamsonasocial
mediasite.Thevideoappearsinthesameformatastheregularcontentinthestreams,whichconsistof
postsbyindividualsandentitieswithwhomusershavechosentointeractorfollow.Eachpost,including
anyads,areclearlyattributabletoasourcebyname,e.g.,ZYXPaintsorLauraN.Michaels.Based
https://www.ftc.gov/tipsadvice/businesscenter/guidance/nativeadvertisingguidebusinesses

6/11

12/23/2015

NativeAdvertising:AGuideforBusinesses|FederalTradeCommission

ontheircustomaryuseofthesocialmediasite,consumersordinarilywouldbeawarethattheydidnot
subscribetoapostbyZYXPaints,andthuswouldbeunlikelytoperceivetheadasaregularpost
appearingintheircontentstream.Instead,theywouldattributeittothesponsoringadvertiser.Thus,in
thissituation,adisclosureinformingconsumersofthevideoscommercialnaturebeforetheyviewitis
notnecessary.However,giventhevideosformatdescribedinExample12,consumerswhoviewthe
videowouldreasonablybelieveanindependenthomeimprovementshowproducedthevideoandthatit
reflectstheimpartialviewsoftheshowshostorwriters,andnotthoseofasponsoringadvertiser.To
avoiddeception,aclearandprominentdisclosureinformingconsumersofthevideoscommercialnature
isnecessaryinthevideoitself.
Example15
TheWingedMercuryarticlepublishedinFitnessLife,RunningGearUp:MistakestoAvoid,describedin
Example5includesbuttonssothatreaderscanpostalinktothearticlefromtheirpersonalsocialmedia
streams.Whenposted,thelinkappearsinaformatthatcloselyresemblestheformatoflinksforregular
FitnessLifearticlespostedtosocialmedia.Inthissituation,theadsformatwouldlikelymislead
consumerstobelievetheadisaregulararticlepublishedinFitnessLife.Advertisersshouldensurethat
theformatofanylinkforpostinginsocialmediadoesnotmisleadconsumersaboutitscommercial
nature.
Example16
Gormellauploadshumorousvideostoherdedicatedchannelonapopularvideosharingplatformandhas
cultivatedasignificantsocialmediafollowing.Amonghervideosisoneshecreatedforasnackfood
companytopromoteitsnewcracker,SaltZs.Thevideo,CrackeringUpinMyLocalSupermarket,
includesathumbnailimageofGormellalaughinginagrocerystoreaisle.Inthevideo,Gorgellastartsout
inthesupermarketaisleandismagicallytransportedtovariouslocaleswhereshetalkstopeopleabout
SaltZs.Onceconsumersviewthevideo,theyarelikelytoidentifyitasanadvertisementand
understandthatthesponsoringadvertiserpaidGormellatopromoteandendorseitsbrandedproduct.
Nevertheless,beforewatchingthevideo,consumerslikelywouldnotexpectittobeadvertising,given
theirexperiencewithothervideosshehadposted.Thus,thevideoscommercialnatureshouldbeclearly
andprominentlydisclosedbeforeconsumersviewit.
Yetanothersettinginwhichconsumersmaycomeuponnativeadsisinnonpaidsearchengineresults.
Advertisersshouldtakestepstoensurethatanynonpaidsearchlistingsforanativeaddonotsuggestorimply
toconsumersthatitissomethingotherthananad.
Example17
AtextlinkandthumbnailimageforthesameZYXPaintsvideodescribedinExample12appearsinthe
nonpaidsearchresultsreturnedinresponsetoconsumersqueriesusingasearchengine.Thetextual
linktothevideoreadsBuildingaDeck:5StepsforSuccessandincludesthenameofthehome
improvementshow,butdoesnotmentionZYXPaints.Inthisexample,basedonconsumerscustomary
experienceusingsearchengines,theyordinarilywouldassociateavideopresentedinthismannertothe
homeimprovementprogramandnottoasponsoringadvertiser.Theadvertisershouldensurethatany
linkorothervisualelements,forexample,webpagesnippets,images,orgraphics,intendedtoappearin
nonpaidsearchresultseffectivelydiscloseitscommercialnature.

III. How to make clear and prominent disclosures in

native advertising
https://www.ftc.gov/tipsadvice/businesscenter/guidance/nativeadvertisingguidebusinesses

7/11

12/23/2015

NativeAdvertising:AGuideforBusinesses|FederalTradeCommission

Disclosuresthatarenecessarytoavoidmisleadingconsumersmustbepresentedclearlyandprominently.
Whetheradisclosureofanativeadscommercialnaturemeetsthisstandardwillbemeasuredbyits
performancethatis,doconsumersrecognizethenativeadasanad?Onlydisclosuresthatconsumers
notice,process,andunderstandcanbeeffective.Inadequatedisclosurescantchangethenetimpression
createdandwontstopconsumersfrombeingdeceivedthatadvertisingorpromotionalmessagesaresomething
otherthanads.
TheFTCstaffbusinessguidancedocument.comDisclosures:HowtoMakeEffectiveDisclosuresinDigital
Advertisingexplainswhatadvertisersshoulddotoensuredisclosuresindigitaladvertisingareclearand
prominent.Ingeneral,disclosuresshouldbe:
inclearandunambiguouslanguage
ascloseaspossibletothenativeadstowhichtheyrelate
inafontandcolorthatseasytoread
inashadethatstandsoutagainstthebackground
forvideoads,onthescreenlongenoughtobenoticed,read,andunderstoodand
foraudiodisclosures,readatacadencethatseasyforconsumerstofollowandinwordsconsumerswill
understand
Disclosuresmustbeclearandprominentonalldevicesandplatformsthatconsumersmayusetoviewnative
ads.Inassessingeffectiveness,disclosuresshouldbeconsideredfromtheperspectiveofareasonable
consumer.Whenadsaretargetedtoaspecificaudience,therelevantperspectiveisthatofareasonableor
ordinarymemberofthetargetedgroup.Advertisersshouldimprovetheirdisclosuresifthereareindicationsthat
asignificantminorityofreasonableconsumersdonotnotice,process,orcomprehendthem.
Advertisershaveflexibilityastohowtoidentifynativeadsasads,solongasconsumersnoticeandprocessthe
disclosuresandcomprehendwhattheymean.Somenativeadsusetextlabelsorcompanylogoscombined
withothervisualcues,suchasbackgroundshading,outlines,orborders.Multimediaads,suchasonline
videos,mayusegraphics,videooraudiodisclosures,orsomecombinationthereof.Thefollowingdiscussion
describesadditionalinformationthatadvertisersshouldconsidertomakeclearandprominentdisclosuresin
nativeadvertisingonthemainpageofapublishersiteandontheclickortapintopageonwhichacompletead
appears.

A.Proximityandplacement
Placedisclosuresonthemainpageofapublishersitewhereconsumerswillnotice
themandeasilyidentifythecontenttowhichthedisclosureapplies.
Advertisersshouldassumethatconsumersdontlookateverythingonapublishersite.Indecidingwhich
contentitemstoreadorwatch,consumersattentionislikelytobedrawntocertainfocalpointsonascreen.
Thedisclosurethatanadiscommercialcontentshouldappearneartheadsfocalpoint.Whenbrowsingthe
mainpageofnewsorcontentaggregatorsites,consumerstypicallylookatstoryheadlinesonthesite.Placing
disclosuresnearanativeadsheadlineincreasesthelikelihoodconsumerswillseethem.

Placedisclosuresinfrontoforabovetheheadlineofthenativead.
Thelocationandspacingofadisclosureinrelationtothenativeaditclarifiesalsomatters.Ifapublishersiteis
https://www.ftc.gov/tipsadvice/businesscenter/guidance/nativeadvertisingguidebusinesses

8/11

12/23/2015

NativeAdvertising:AGuideforBusinesses|FederalTradeCommission

readlefttoright,consumersarelesslikelytonoticedisclosurespositionedtotherightofthenativeadstowhich
theyrelate.Inaddition,ifnativeadsareinsertedintoaverticalstreamofcontentitems,placingadisclosure
belowanativeadincreasestheriskthatconsumerswillclickontheadwithoutseeingthedisclosure.
Consumersaremostlikelytonoticeandunderstanddisclosuresthatareplacedimmediatelyinfrontoforabove
anativeadsheadline.

Ifanativeadsfocalpointisanimageorgraphic,adisclosuremightneedtoappear
directlyonthefocalpointitself.
Sometimesafocalpointonapublishersiteissomethingotherthanaheadlineorotherwrittentextfor
example,imagesorgraphics.Disclosuresplacednearfocalpointsthatareimages,graphics,orothervisually
strongelementsmightnotbesufficientlynoticeabletoconsumersanddisclosuresmightneedtobeplacedon
thefocalpointsthemselves.Forexample,indecidingwhichvideostowatchonavideosharingchannel,
consumersmightpaylittleattentiontowrittendescriptionsandinsteadlookatthumbnailimagesofthevideos.
Underthosecircumstances,adisclosureplaceddirectlyonthethumbnailimageitselfismostlikelytobe
effective.

Asingledisclosurethatrelatestomorethanonenativeadshouldbeaccompanied
byvisualcuesthatmakeitclearthedisclosureappliestoeachadinthegrouping.
Somedisclosuresmayrelatetomorethanonecontentitem,suchaswithcontentrecommendationwidgets
includedonapublishersite.Ifagroupingofcontentitemscontainsamixofadvertisingandnonadvertising
content,asingledisclosureshouldnotbeusedbecauseconsumersarenotlikelytoknowtowhichcontent
itemsthedisclosurerelates.Inthosecircumstances,nativeadsshouldbeindividuallylabeledtomakeclear
whichcontentitemsareads.Inaddition,ifasingledisclosureisusedtodifferentiatemorethanonenativead
asadvertising,othervisualcuesarenecessarytomakeitobvioustoconsumersthatthedisclosurerelatesto
eachofthenativeadsinthegrouping,suchasthroughbackgroundshadingthathasaclearoutlineoradistinct
borderthatsetsoffthenativeadsfromothercontentitemsonasite.

Disclosuresshouldremainwhennativeadsarerepublishedbyothers.
Advertisersshouldmaintaindisclosureswhennativeadsarerepublishedbyothersinnonpaidsearchresults,
socialmedia,email,orothermedia.Innonpaidsearchresults,consumersaremorelikelytonoticea
disclosureifitsplacedatthebeginningofthetitletagforanativeadssearchlisting.Similarly,URLlinksfor
postingorsharinginsocialmediaoremailshouldincludeadisclosureatthebeginningofthenativeadsURL.
Insomecircumstances,nativeadsforrepublishinginothermediamayincludeotherdistractingelementssuch
aswebpagesnippets,images,orgraphics.Inplacingdisclosures,advertisersalsoshouldconsiderhowthese
additionalvisualelementsmightinfluencewhereconsumerslookbeforetheyclickonnativeads.

Onceconsumersarriveontheclickortapintopagewherethecompletenativead
appears,disclosuresshouldbeplacedascloseaspossibletowheretheywilllook
first.
Becauseconsumerscannavigatetonativeadsindifferentways,aclearandprominentdisclosurealsoshould
bepresentedontheclickortapintopageonwhichacompletenativeadappears.Adisclosureismorelikely
tobeseenifitsplacedwhereconsumersordinarilystartlookingonapage.Forarticles,consumerstypically
lookfirstattheheadlineandthenbrowsethecontent.Disclosuresthereforeshouldbeplacedascloseas
possibletotheheadline.Inplacingdisclosures,advertisersalsoshouldavoidputtingthemfaraboveortothe
rightoftheheadline,whereconsumersareunlikelytonoticethem.

Inmultimediaads,adisclosureshouldbedeliveredtoconsumersbeforetheyreceive
https://www.ftc.gov/tipsadvice/businesscenter/guidance/nativeadvertisingguidebusinesses

9/11

12/23/2015

NativeAdvertising:AGuideforBusinesses|FederalTradeCommission

theadvertisingmessagetowhichitrelates.
Withmultimediaads,disclosuresgenerallyshouldbemadeintheaditselfandshortlybeforeconsumersreceive
anadvertisingmessage.Deliveringdisclosuresduringorafteranadvertisingmessageincreasestherisk
consumerswillmissthenecessarydisclosure.Butmakingdisclosurestooearlycanbeproblematic,too.
Somenativeadsmaybeonlyasmallpartoflargerprogrammingforexample,avideovignetteorvideogame.
Inthatcase,adisclosureatthebeginningofprogrammingmaynoteffectivelycommunicatetoconsumersthat
thelatercontentisanadvertisingmessage.Inthosecircumstances,disclosuresshouldbedeliveredasclose
aspossibletotheadvertisingmessagestheycover.

B.Prominence
Advertisingdisclosuresshouldstandoutsoconsumerscaneasilyreadorhearthem.
Advertisingdisclosuresshouldstandout.Disclosuresshouldbelargeandvisibleenoughforconsumersto
readilynoticethem.Therefore,advertisersshouldtakeintoaccountthesizeandconfigurationofthedevice
screensconsumerswilltypicallyusetoviewtheircontent.Textlabelsshouldbeinafontsizeandcolorthat
consumerscaneasilyreadonthescreen.Tobereadable,textcolorshouldcontraststronglywiththe
background.Usinglighterfontcolorswithadarkbackgroundmakesitlesslikelyconsumerswillreadthetextof
adisclosure.
Anybackgroundshadingusedtodifferentiatenativeadsfromnonadvertisingcontentshouldbesufficiently
saturatedforconsumerstonoticeit.Advertisersalsoshouldconsiderusingvisualcuesinadditionto
backgroundshading,suchasaprominentborderthatsetsoffnativeadsfromsurroundingcontent,incase
consumerscannotseecolordifferences.
Multimediaadsthatdeliveranaudiomessagemayrequireanaudiodisclosure.Audiodisclosuresshouldbein
asufficientvolumeandcadenceforordinaryconsumerstohearandcomprehendthem.Inaddition,visual
disclosuresinmultimediaadsshouldbedisplayedonthescreenlongenoughforordinaryconsumerstonotice,
read,andcomprehendthem.

C.Clarityofmeaning
Disclosuresmustbeunderstandable.
Disclosuresarenoteffectiveunlessconsumersunderstandthemtomeanthatnativeadsarecommercial
advertising.Disclosuresshouldbeinplainlanguagethatisasstraightforwardaspossible.Anadvertiseralso
shouldmakedisclosuresinthesamelanguageasthepredominantlanguageinwhichtheadispresented.
Advertisersshouldavoidusing:
Technicalorindustryjargon
Differentterminologytomeanthesamethingindifferentplacesonapublishersite
Thesameterminologytomeandifferentthingsonapublishersite
Termsthatcustomarilyhavedifferentmeaningstoconsumersinothersituations
Unfamiliariconsorabbreviationsor
Companylogosorbrandnamesunaccompaniedbyacleartextdisclosure.
https://www.ftc.gov/tipsadvice/businesscenter/guidance/nativeadvertisingguidebusinesses

10/11

12/23/2015

NativeAdvertising:AGuideforBusinesses|FederalTradeCommission

TermslikelytobeunderstoodincludeAd,Advertisement,PaidAdvertisement,SponsoredAdvertising
Content,orsomevariationthereof.AdvertisersshouldnotusetermssuchasPromotedorPromoted
Stories,whichinthiscontextareatbestambiguousandpotentiallycouldmisleadconsumersthatadvertising
contentisendorsedbyapublishersite.Furthermore,dependingonthecontext,consumersreasonablymay
interpretotherterms,suchasPresentedby[X],BroughttoYouby[X],Promotedby[X],orSponsoredby
[X]tomeanthatasponsoringadvertiserfundedorunderwrotebutdidnotcreateorinfluencethecontent.
Inaddition,termsmightnotbesufficientlycleartoconsumersifusedonapublishersitethatalsousesdifferent
termstolabelads.Usingconsistentterminologytoidentifyadsonthesamepublishersitedecreasesthe
likelihoodthatconsumerswillmisunderstandanativeadsdisclosure.Moreover,companylogosandnameson
theirownarenotlikelyadequatetosignalthatcontentiscommercialadvertising.
Afinalnote:TheFTCsEnforcementPolicyStatementonDeceptivelyFormattedAdvertisementsdoesnt
applyjusttoadvertisers.Inappropriatecircumstances,theFTChastakenactionagainstotherpartieswho
helpedcreatedeceptiveadvertisingcontentforexample,adagenciesandoperatorsofaffiliateadvertising
networks.Everyonewhoparticipatesdirectlyorindirectlyincreatingorpresentingnativeadsshouldmakesure
thatadsdontmisleadconsumersabouttheircommercialnature.Marketerswhousenativeadvertisinghavea
particularinterestinensuringthatanyoneparticipatinginthepromotionoftheirproductsisfamiliarwiththe
basictruthinadvertisingprinciplethatanadshouldbeidentifiableasanadtoconsumers.

Your Opportunity to Comment

TheNationalSmallBusinessOmbudsmanand10RegionalFairnessBoardscollectcommentsfromsmall
businessesaboutfederalcomplianceandenforcementactivities.Eachyear,theOmbudsmanevaluatesthe
conductoftheseactivitiesandrateseachagencysresponsivenesstosmallbusinesses.Smallbusinessescan
commenttotheOmbudsmanwithoutfearofreprisal.Tocomment,calltollfree1888REGFAIR(1888734
3247)orgotowww.sba.gov/ombudsman.
December2015

https://www.ftc.gov/tipsadvice/businesscenter/guidance/nativeadvertisingguidebusinesses

11/11