Home Ad Exchange News One In Three Publishers Don’t Follow The FTC’s Native Guidelines

One In Three Publishers Don’t Follow The FTC’s Native Guidelines

SHARE:

Native-Ad-DisclosuresThis post is not sponsored.

Thirty-seven percent of publishers fail to properly label their sponsored content to comply with the FTC enforcement policy issued in December 2015, according to MediaRadar. The ad sales intelligence firm scanned sponsored content ads from 12,000 brands over the course of 2016.

The numbers may look bad, but they actually represent progress. When the FTC released the native ad guidance at the end of 2015, MediaRadar found that 71% of publishers didn’t comply. Over the past year, the majority have taken steps to fall in line with the consumer watchdog agency’s guidelines. As for the rest?

“There is a group of people unaware that the law exists, or that doesn’t care,” said MediaRadar CEO Todd Krizelman. He noted that the comScore 100 and large sponsored content publishers like Forbes, Quartz and The New York Times all comply with the FTC guidance. Smaller publishers tend to be more lax about compliance.

Publishers can miss guidelines in a number of ways. The worst offense, no labeling at all, declined precipitously. Only 5% of publishers provided no labeling of sponsored content. Last year, shortly after the FTC-issued guidance, 25% of publishers didn’t label sponsored content at all.

The majority, 74%, now label content “sponsored,” and 11% use “promoted.” The FTC approves of “sponsored content” but not “sponsored by” or “promoted,” both terms it feels are misleading. And 32% of publishers apply sponsorship labels to the bottom of posts, while the FTC prefers the top.

But the publishers skirting compliance may not be the ones with the most to lose. The FTC said when issuing the guidelines that it considers the advertiser to be the primary party responsible for labeling sponsored posts correctly, though it would take into account others.

“The brands should know better,” Krizelman said. “We don’t see errors with big firms like P&G or Unilever, but we do see large national brands that are buying ads that aren’t properly noted.”

The FTC has taken action before. In March 2016, it settled charges with Lord & Taylor for not labeling sponsored posts on the publisher Nylon’s Instagram page. And another 50 fashion influencers posted shots of themselves wearing the dress without a “#sponsored” hashtag.

A few months later, the FTC settled with Warner Bros. for a similar violation in which influencers, like PewDiePie, didn’t disclose sponsorships after they were paid to promote videos.

Brands and publishers executing native campaigns are often quite new to the format.

Subscribe

AdExchanger Daily

Get our editors’ roundup delivered to your inbox every weekday.

MediaRadar tracked 610 new advertisers each month buying native. And the amount of publishers offering native tripled over the past two years, Krizelman said. If they aren’t doing research before launching campaigns, that lack of foresight could be contributing to missing sponsored content labeling.

Although MediaRadar saw 63% of publishers modify their sponsored content programs last year, Krizelman doesn’t expect more publishers to fall in line when they repeat the study next year.

“We think the most responsible custodians have already acted,” he said. “Unless the FTC communicates more or enforces more, I wouldn’t expect to see much change. That’s my own expectation of how human behavior works.”

Must Read

play button with many coins isolated on blue background. The concept of monetization of the video. Making money on video content. minimal style. 3d rendering

Exclusive: Connatix And JW Player Merge To Create A One-Stop Shop For Video Monetization

On Wednesday, video monetization platforms Connatix and JW Player announced plans to merge into a new entity called JWP Connatix. The deal was first rumored in July.

HUMAN Raises $50 Million

HUMAN plans to build a deterministic ID from its tracking of more than 20 trillion digital signals per week across 3 billion devices, which will aid attribution for ecommerce.

Buyers Can Now Target High-Attention Inventory In The Trade Desk

By applying Adelaide’s Attention Unit scoring, buyers can target low-, medium- and high-attention inventory via TTD’s self-serve platform.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters

How Should Advertisers Navigate A TikTok Ban Or Google Breakup? Just Ask Brian Wieser

The online advertising industry is staring down the barrel of not one but two potential shutdowns that could radically change where brands put their ad dollars in 2025, according to Madison and Wall’s Brian Weiser and Olivia Morley.

Intent IQ Has Patents For Ad Tech’s Most Basic Functions – And It’s Not Afraid To Use Them

An unusual dilemma has programmatic vendors and ad tech platforms worried about a flurry of potential patent infringement suits.

TikTok Video For Open Web Publishers? Outbrain Built It.

Outbrain is trying to shed its chumbox rep by bringing social media-style vertical video to mobile publishers on the open web.