New Study: IAB Evaluates In-Feed Sponsored Content Through the Consumers’ Perspective

A comprehensive study conducted by the Interactive Advertising Bureau (IAB) and analytics company Edelman Berland emphasized the essence of consumers’ viewpoint in evaluating in-feed sponsored content as a type of native advertisement. A total of 5,000 users who visit U.S. news sites were asked a series of questions after they were exposed to a series of mock in-feed ads. These mock in-feed ads closely resemble the in-feed ads that are commonly found in business, entertainment, and general news sites.

Results showed that the majority of respondents said that relevancy is an important factor that generates interest in the content. According to one respondent, the content has to be relevant, and should reflect what they are reading. If content meets such criteria, then respondents are “more likely to seek out those advertisers.”

Furthermore, the study discovered that companies are more likely to succeed with their sponsored content if they have an established and positive reputation. A credible brand earns familiarity and trust from readers, which is why 81% of them said that familiarity and trust are important factors. Expertise, as well as content that appears to be authoritative, are additional factors that spark interest in respondents.

In digital advertising, consumers are more interested in ads that tell a story instead of just selling the product, according to 60% of respondents. Respondents say they want ads that have articles they want to read and must not “look [just like] advertising.”

As for publishers, it is important for them that they partner with popular websites. The study showed a 33% boost in the credibility of sponsored content when they are posted on well-respected websites. Publishers must also display responsibility by only accepting advertisers that align with their site’s content and produce quality work.

“This new study shows that in-feed sponsored content can be a win for brands and publishers both, when consumers’ viewpoints are taken into account,” stated Sherrill Mane, Senior Vice President for Research, Analytics, and Measurement at IAB. “News publishers get greater impact when they work with familiar and trusted brands. By the same token, marketers see greater lift when publishers are perceived by consumers as credible news outlets. There are a myriad of other issues at play too, so it is incumbent upon everyone involved to understand key criteria when agreeing to a native advertising campaign.”

The full report may be downloaded here.

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