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Sponsorship Disclosure and Consumer Deception: Experimental Evidence from Native Advertising in Mobile Search

机译：赞助商披露和消费者欺骗：来自移动搜索中原生广告的实验证据

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Recent advances in advertising technology have lead to the development of "native advertising," which is a format of advertising that mimics the other nonsponsored content on the medium. Whereas advertisers have rapidly embraced the format on a variety of digital media, regulators have expressed serious concerns about whether this format materially deceives consumers because the advertising disclosure is incomplete or inappropriate. This has reignited a longstanding debate about the distinction between advertising and content in media markets, and how it affects consumers. This paper contributes to this debate by providing empirical evidence from a randomized experiment conducted on native advertising at a mobile restaurant-search platform. We experimentally vary the format of paid-search advertising, the extent to which ads are disclosed to over 200,000 users, and track their anonymized browsing behavior including clicks and conversions. The research design we propose uses comparisons of revealed preferences under experimentally manipulated treatment and control conditions to assess the potential for consumer confusion and deception. A design based on revealed preference speaks to the "material" standard of regulators, helps assess confusion while avoiding directly questioning consumers, and may be useful in other settings. Implementing the design, we find that native advertising benefits advertisers and detect no evidence of deception under typically used formats of disclosure currently used in the paid-search marketplace. Further investigation shows that the incremental conversions due to advertising are not driven by users clicking on the native ads. Rather, the benefits from advertising are driven by users seeing the ads and later clicking on the advertiser's "organic" listings. Thus, we find little support of native advertising tricking users into clicking and driving them to advertisers as typically feared; instead, users seem to view ads and deliberately evaluate the advertisers. Furthermore, mere exposure seems sufficient to produce most of the incremental effect of advertising.
机译：广告技术的最新进展导致了“本地广告”的发展，“本地广告”是一种模仿媒体上其他非赞助内容的广告格式。尽管广告商已在各种数字媒体上迅速采用了这种格式，但由于广告披露不完整或不当，监管机构对这种格式是否会严重欺骗消费者表示严重关切。这重新引发了关于媒体市场中广告和内容之间的区别以及它如何影响消费者的长期争论。本文通过在移动餐厅搜索平台上针对本地广告进行的随机实验提供经验证据，为这场辩论做出了贡献。我们实验性地改变了付费搜索广告的格式，向超过200,000个用户公开广告的范围，并跟踪其匿名的浏览行为，包括点击和转化。我们提出的研究设计使用在实验操作的治疗和控制条件下显示的偏好进行比较，以评估造成消费者困惑和欺骗的可能性。基于揭示的偏好的设计符合监管者的“实质性”标准，有助于评估混乱，同时避免直接质疑消费者，并且可能在其他环境中有用。实施该设计，我们发现本地广告对广告商有利，并且在付费搜索市场当前使用的通常使用的披露格式下，没有发现任何欺骗的证据。进一步的调查表明，广告带来的增量转化不是由用户点击原生广告驱动的。而是，广告的收益是由用户看到广告并随后单击广告商的“有机”列表驱动的。因此，我们发现原生广告的支持很少，诱使用户点击并把他们吸引到广告商，这是通常所担心的。相反，用户似乎在查看广告并刻意评估广告客户。此外，仅仅曝光似乎足以产生广告的大部分增量效果。

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