A Third of Publishers Don’t Comply With FTC Rules for Native Ads, According to MediaRadar

February 28, 2017 in Native Advertising

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AdWeek - Each year, more outlets follow the regulations.

As native ads and sponsored content become more prevalent, the FTC has increased the number of regulations to help publishers and influencers navigate what’s fair to their audiences.

According to a new study from MediaRadar, 37 percent of publishers are “not native compliant.” While the study does say that more and more publishers every year are becoming more native compliant, more than a third of them have still yet to modify their practices.

MediaRadar came to these conclusions after researching almost 13,000 brands across print, linear TV, social media, newsletters and other online properties. The study, titled “Leaders and Lessons in Native Advertising,” also listed the top five categories as media and entertainment, professional services, finance and real estate, technology and retail.

“In 2015, less than a third of publishers complied with the FTC’s native guidelines upon launch,” said Todd Krizelman, the CEO and co-founder of MediaRadar, in a press release. “But adoption has grown meaningfully in just 12 months. More publishers have familiarized themselves with the rules and are observing them. But there is still room for improvement. More than one-third of publishers remain non-compliant.

The study also noted that renewal rates for native campaigns were low last year, but publishers with more established native programs have a 49 percent renewal rate, with an optimistic forecast for this coming year.

“These are the publishers that have invested in the technology and additional personnel required to be successful,” said Krizelman. “They understand how to leverage native, and, in turn, will be the ones who set the bar high.”

MediaRadar did find “a dramatic increase in transparency in 2016,” especially as the FTC led the first native advertising case against Lord & Taylor in March 2016.

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