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Volume 1, Number 9 • January 4, 2016
FROM THE PUBLISHER OF THE SEYBOLD REPORT ISSN: 2380-6850
The FTC Issues Deceptive Advertising
Warning and Native Advertising Guide
On December 22, 2015 the United States Federal Trade Commission (FTC) issued an enforcement policy
statement explaining how the consumer protection principles the FTC has established and enforced for
decades apply to different advertising formats—including native ads which look like surrounding non-
advertising content. While the FTC statement did not point the finger of blame only at digital advertis-
ing, the agency did make sure comments about such advertising were mentioned early and often in the
statement.
The agency made it clear in the press release announcing the statement its long-standing policies apply
to digital media, “The FTC’s policy applies time-tested truth-in-advertising principles to modern media,”
said Jessica Rich, Director of the Bureau of Consumer Protection. “People browsing the Web, using social
media, or watching videos have a right to know if they are seeing editorial content or an ad.”
The same day the FTC released the Enforcement Policy Statement, it issued a much shorter statement
entitled Native Advertising: A Guide for Business. This guide, the FTC says, was written and released “to
help companies understand, and comply with, the policy statement in the context of native advertising.
The business guidance gives examples of when disclosures are necessary to prevent deception and FTC
staff guidance on how to make clear and prominent disclosures within the format of native ads.”
Briefly Noted: Recent Tweets
of Interest
The Latest Word
 FTC to Conduct Privacy
Conference
 IAB Launches Sales
Leadership Summit
 IAB Announces Leadership
Meeting Speakers
 In-app Advertising Report
Published
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MarTech Trends
Conference
 Medialets and Millward
Brown Partner
2
The FTC Issues Deceptive Advertising
Warning and Native Advertising Guide
On December 22, 2015 the United States Federal Trade Commis-
sion (FTC) issued an enforcement policy statement explaining how
the consumer protection principles the FTC has established and
enforced for decades apply to different advertising formats—in-
cluding native ads which look like surrounding non-advertising
content. While the FTC statement did not point the finger of
blame only at digital advertising, the agency did make sure com-
ments about such advertising were mentioned early and often in
the statement.
The agency made it clear in the press release announcing the state-
ment its long-standing policies apply to digital media, “The FTC’s
policy applies time-tested truth-in-advertising principles to mod-
ern media,” said Jessica Rich, Director of the Bureau of Consum-
er Protection. “People browsing the Web, using social media, or
watching videos have a right to know if they are seeing editorial
content or an ad.”
The same day the FTC released the Enforcement Policy Statement,
it issued a much shorter statement entitled Native Advertising: A
Guide for Business. This guide, the FTC says, was written and re-
leased “to help companies understand, and comply with, the policy
statement in the context of native advertising. The business guid-
ance gives examples of when disclosures are necessary to prevent
deception and FTC staff guidance on how to make clear and promi-
nent disclosures within the format of native ads.”
Every subscriber and all senior executives involved in digital mar-
keting should study the 16-page statement and the guide. In this
article we provide direct links to the online documents.
In this article, as well, we provide several lengthy quotes from the
policy statement and the guide. These quotations are presented
in italics. We have also summarized some of the major statements
in both and did not italicize these. We hope this article provides
incentive for reading the complete text of the FTC materials sooner
rather than later.
We also, as usual, provide an Our Take at the end of the article
summarizing our views on the materials presented in this article
and the FTC documents.
From the Policy Statement Introduction
The policy statement jumps right into the discussion with the FTC’s
definition of deceptive advertising:
Section 5 of the FTC Act prohibits “unfair or deceptive acts or prac-
tices in or affecting commerce.” As the Commission set forth in its
1983 Policy Statement on Deception, a representation, omission, or
practice is deceptive if it is likely to mislead consumers acting reason-
ably under the circumstances and is material to consumers–that is, it
Direct link to the enforcement policy statement: https://www.ftc.gov/system/
files/documents/public_statements/896923/151222deceptiveenforcement.pdf.
3
would likely affect the consumer’s conduct or decisions with regard
to a product or service.
In determining whether an advertisement, including its format, mis-
leads consumers, the Commission considers the overall ‘’net impres-
sion” it conveys. Any qualifying information necessary to prevent
deception must be disclosed prominently and unambiguously to
overcome any misleading impression created.
Regardless of the Medium
The Commission has long held the view advertising and promotional
messages not identifiable as advertising to consumers are deceptive
if they mislead consumers into believing they are independent, im-
partial, or not from the sponsoring advertiser itself.
Knowing the source of an advertisement or promotional message
typically affects the weight or credibility consumers give it. Such
knowledge also may influence whether and to what extent consum-
ers choose to interact with content containing a promotional mes-
sage.
Over the years, the Commission has challenged as deceptive a wide
variety of advertising and other commercial message formats, includ-
ing “advertorials” that appeared as news stories or feature articles,
direct-mail ads disguised as book reviews, infomercials presented as
regular television or radio programming, in-person sales practices
that misled consumers as to their true nature and purpose, mort-
gage relief ads designed to look like solicitations from a government
agency, e-mails with deceptive headers that appeared to originate
from a consumer’s bank or mortgage company, and paid endorse-
ments offered as the independent opinions of impartial consumers
or experts...
Regardless of the medium in which an advertising or promotional
message is disseminated, deception occurs when consumers acting
reasonably under the circumstances are misled about its nature or
source, and such misleading impression is likely to affect their deci-
sions or conduct regarding the advertised product or the advertising.
This statement sets forth generally applicable standards on which
the Commission relies in making such a determination.
Deceptive Advertising Formats
The FTC goes on to list, describe, and provide examples of what it
had deemed to be deceptive advertising practices. Below we have
summarize this portion of the document as a handy list of what
marketers, advertisers, and publishers should not do in their adver-
tising efforts, online or not:
Advertisments Misrepresenting Source or Nature
The FTC offered a few examples of deceptive advertising which de-
ceive by appearing in a news format or, in some other way, misrep-
resent their source or nature. From those example, we chose two
which should resonate with digital advertising professionals:
The Commission challenged as deceptive a Web site purported to
originate from an independent scientific organization. The Commis-
sion alleged dietary supplement marketers misrepresented their Web
site promoting the health benefits of their children’s supplements was
an independent, objective resource for scientific and other informa-
tion on treating a specific health condition, and they failed to disclose
their relationship to the Web site.
In 2002, when online search was a relatively new medium, FTC staff
issued guidance concerning the potential for consumers to be de-
ceived by paid ads formatted to appear as the regular search results
that search engines return in response to consumers’ queries. The
Commission concurs with the staff’s conclusion, as articulated in the
2002 guidance and updated guidance issued in 2013 that consumers
ordinarily would expect a search engine to return results based on
relevance to a search query, as determined by impartial criteria, not
based on payment from a third party.
Knowing when search results are included or ranked higher based
on payment and not on impartial criteria likely would influence con-
4
sumers’ decisions with regard to a search engine and the results it
delivers. Thus, failing to clearly and prominently disclose the paid
nature of such advertising results is deceptive.
Misleading Door Openers
The policy statement also makes it clear the FTC is unhappy with
advertising which masquerades as content written by impartial
third-parties. Here is how the statement describes and defines this
kind of deceptive advertising:
 Other formats that mislead consumers about a commercial
message’s nature or purpose also have been alleged or found
to be deceptive, such as misleading sales visits and calls and e-
mails with falsified sender information.
 The recent proliferation of natively formatted advertising in
digital media has raised questions about whether these adver-
tising formats deceive consumers by blurring the distinction
between advertising and non-commercial content.
 Regardless of an ad’s format or medium of dissemination, cer-
tain principles undergird the Commission’s deceptive format
policy. Deception occurs when an advertisement misleads rea-
sonable consumers as to its true nature or source, including
that a party other than the sponsoring advertiser is the source
of an advertising or promotional message, and such mislead-
ing representation is material.
 In this regard, a misleading representation is material if it is
likely to affect consumers’ choices or conduct regarding the
advertised product or the advertisement, such as by leading
consumers to give greater credence to advertising claims or to
interact with advertising with which they otherwise would not
have interacted. Such misleadingly formatted advertisements
are deceptive even if the product claims communicated are
truthful and non-misleading.
Regardless of an ad’s format or medium of
dissemination, certain principles undergird the
Commission’s deceptive format policy. Deception
occurs when an advertisement misleads reasonable
consumers as to its true nature or source, including
that a party other than the sponsoring advertiser is
the source of an advertising or promotional message,
and such misleading representation is material.
Advertising Format Can Mislead, Too
The FTC made it clear in the statement it will be looking at not just
the content of advertising, but its appearance and placement re-
lated to true content.
In digital media, consumers can encounter natively formatted ads
in a wide variety of situations, including in the news feed or main
page of a publisher site, or through other means, such as posts in
social media, in search results, and in e-mail. In evaluating whether
reasonable consumers would recognize ads as such, the Commission
will consider the particular circumstances in which the ads are dis-
seminated, including customary expectations based on consumers’
prior experience with the media in which it appears and the impres-
sion communicated by the ad’s format.
For instance, if a natively formatted ad appearing as a news story is
inserted into the content stream of a publisher site that customarily
offers news and feature articles, reasonable consumers are unlikely
to recognize it as an ad.
To the extent an advertisement is targeted to a specific audience,
the Commission will consider the effect of the ad’s format on rea-
sonable or ordinary members of that targeted group. Certain ads
that are formatted like the non-advertising content with which they
5
are presented, however, may be unlikely to mislead consumers act-
ing reasonably. Some ads by the very nature of their promotional
message communicated may be inherently obvious as advertising to
consumers.
For instance, if a natively formatted ad with an image of a particular
sports car and the headline “Come and Drive [X] today” were in-
serted into the news stream of a publisher site, that ad likely would
be identifiable as an ad to consumers, even though it was presented
in the same visual manner as news stories in the stream.
What the FTC Says Advertisers Must Do
To avoid having their advertising deemed deceptive by the FTC, ad-
vertisers should take specific steps to make sure consumers under-
stand when they are seeing or reading advertising material. Most
of these boil down to the simple idea of making it clear to even the
busiest and most distracted consumer that what they are seeing is
advertising and not fact or curated, impartial content.
In the policy statement the FTC offers concrete direction and ex-
amples to underscore its mandate. Here are some of them:
 Advertisements may include disclosures to inform consumers
of their commercial nature, including text labels, audio disclo-
sures, or visual cues distinguishing the ad from other content
into which it is integrated.
 Any disclosure used must be “sufficiently prominent and un-
ambiguous to change the apparent meaning of the claims and
to leave an accurate impression.”
 A disclosure’s adequacy ultimately will be measured by wheth-
er reasonable consumers perceive the ad as advertising.
 To be effective, a [advertising] disclosure also generally must
be made contemporaneously with the misleading claim it is
intended to qualify. For example, disclosures that subsequently
inform consumers of a natively formatted ad’s commercial
nature after they have clicked on and arrived at another page
will not cure any misleading impression created when the ad is
presented in the stream of a publisher site.
The Statement’s Last Word
Although digital media has expanded and changed the way mar-
keters reach consumers, all advertisers, including digital advertisers,
must comply with the same legal principles regarding deceptive con-
duct the Commission has long enforced.
This statement sets forth principles of general applicability on which
the Commission will rely in determining whether any particular ad-
vertising format is deceptive, in violation of Section 5 of the FTC Act.
The Commission will find an advertisement deceptive if the ad mis-
leads reasonable consumers as to its nature or source, including that
a party other than the sponsoring advertiser is its source.
Misleading representations of this kind are likely to affect consumers’
decisions or conduct regarding the advertised product or the adver-
tisement, including by causing consumers to give greater credence to
advertising claims or to interact with advertising content with which
they otherwise would not have interacted.
Native Advertising: A Guide for Businesses
In the native advertising guide the FTC issued the same day as the
policy statement discussed in this article, the agency re-affirms its
mission to root out deceptive advertising. It also presents several
examples of native advertising which it has deemed are deceptive.
Key to understanding the examples is an underlying principle the
FTC offers: consider the effect the ad, as a whole, has on the con-
sumer.
We present several of the examples found in the guide in this ar-
ticle. Some of them are positive in nature and are intended to show
advertisers how to market products and services. Others, though,
6
are cautionary tales. As with the rest of this article, we quote the
FTC materials extensively and present the quotations in italics.
We recommend all readers of this newsletter visit the FTC Web site
and read the full guide. Here is the direct link to the guide (no
registration is required): https://www.ftc.gov/tips-advice/business-
center/guidance/native-advertising-guide-businesses.
Permissible Example
The Winged Mercury Company sells running shoes. An ad for the
company’s flagship shoe appears on a financial news site. The ad
contains an image of the shoe, the headline “Run Fast, Run Smart,
Run Winged Mercury,” and a hyperlink to learn more about Winged
Mercury shoes’ innovative shock absorption.
The color scheme, font, and graphics of the ad look like the format
of the financial news that appears on the site. However, the slogan
“Run Fast, Run Smart, Run Winged Mercury” together with the mes-
sage to learn more about Winged Mercury shoes’ shock absorption
likely convey to consumers the commercial nature of the content. In
addition, the subject matter of the ad differs substantially from the
financial news on the site. Therefore, a specific disclosure the content
is an ad is probably not necessary, absent extrinsic evidence to the
contrary.
Deceptive Example
A kitchen cabinet company paid an online lifestyle magazine, Styling
Home, to create and publish an article entitled, “10 Must-Haves for
a Great Kitchen.” The article, which displays a series of images de-
picting well-designed kitchens, appears in the same layout as other
articles on the Styling Home site.
Most of the images in the article depict and promote the sponsoring
advertiser’s products. Thus, the article is an advertisement. The ad’s
format, however, is likely to mislead consumers to believe it is an
ordinary Styling Home article and reflects the independent views of
the Styling Home writer, and not those of the sponsoring advertiser.
Therefore, a clear and prominent disclosure of the article’s commer-
cial nature is necessary.
The more a native ad is similar in format and topic to content on the
publisher’s site, the more likely that a disclosure will be necessary to
prevent deception. Furthermore, because consumers can navigate to
the advertising without first going to the publisher site, a disclosure
just on the publisher’s site may not be sufficient. In that instance,
disclosures are needed both on the publisher’s site and the click – or
tap-into page on which the complete ad appears, unless the click-
into page is obviously an ad.
Video Game Examples
A video game immerses a player in a virtual world. While exploring
part of the virtual world, a player sees billboards advertising actual
products. The marketers of the advertised products paid the game
designers to include the ads in the game. That billboards are adver-
tisements is apparent to consumers. To the extent that the billboards
are for actual products, consumers are likely to attribute the ads to
the sponsoring advertisers and no disclosure is necessary. However,
the sponsoring advertisers would be liable for any deceptive product
claims on the billboards.
The same virtual world game integrates branded products in other
ways; for example, game characters wear a specific sunglass brand,
drink a particular brand of beverage, and patronize a particular do-
nut shop. The sponsoring advertisers paid the game developer to in-
clude their branded products in the game. However, the game con-
veys no objective claims about the various branded products.
Even though consumers may not realize that the sponsored adver-
tisers paid for their branded products to appear, disclosure of this
paid product placement is not necessary to prevent consumer de-
ception because whether the branded products appear in the game
because of payment by the sponsoring advertiser or because of the
video game developer’s creative judgment is not likely to be material
to consumers.
7
Web Site Video Example
On its website, a home improvement TV show features “do it your-
self” videos hosted by an expert builder who provides advice on home
projects. A stain manufacturer, ZYX Paints, pays the show to produce
and publish on the home improvement show’s site a video on build-
ing a wood deck.
In the video, the show’s expert builder uses a ZYX Paints stain and
recommends it to protect and maintain the deck. The ad’s look and
feel closely resembles other videos posted on the home improvement
show’s site, which customarily are unpaid.
In this situation, consumers are likely to perceive the video as inde-
pendent content reflecting the impartial opinion of the expert builder
host or the show’s writers and would not likely attribute it to the
sponsoring advertiser. An effective disclosure informing consumers
of the video’s commercial nature before they play it is necessary to
prevent consumer deception.
Another Web Site Video Example
Gormella uploads humorous videos to her dedicated channel on a
popular video-sharing platform and has cultivated a significant so-
cial media following. Among her videos is one she created for a snack
food company to promote its new cracker, Salt-Zs. The video, “Crack-
ering Up in My Local Supermarket,” includes a thumbnail image of
Gormella laughing in a grocery store aisle. In the video, Gorgella
starts out in the supermarket aisle and is magically transported to
various locales where she talks to people about Salt-Zs.
Once consumers view the video, they are likely to identify it as an
advertisement and understand that the sponsoring advertiser paid
Gormella to promote and endorse its branded product.
Nevertheless, before watching the video, consumers likely would not
expect it to be advertising, given their experience with other videos
she had posted. Thus, the video’s commercial nature should be clear-
ly and prominently disclosed before consumers view it.
Making Disclosures Effective
In the guide, the FTC says advertising disclosures should be:
 written in clear and unambiguous language;
 placed as close as possible to the native ads to which they
relate;
 set in easy-to-read fonts and the choice of font color should
also make it easy to read the disclosure text;
 placed in a color shade that stands out against the back-
ground;
 For video ads, the disclsoures should appear on the screen
long enough to be noticed, read, and understood; and
 For audio disclosures, read at a cadence easy for consumers
to follow and in words consumers will understand.
Disclosures must be clear and prominent on all devices and plat-
forms tconsumers may use to view native ads. In assessing effec-
tiveness, disclosures should be considered from the perspective of a
reasonable consumer.
When ads are targeted to a specific audience, the relevant perspec-
tive is that of a reasonable or ordinary member of the targeted group.
Advertisers should improve their disclosures if there are indications
that a significant minority of reasonable consumers do not notice,
process, or comprehend them.
In a Nutshell
The guide also offers three guidelines for creating and placing ef-
fective disclosures. The guide offers many details for the guidelines;
here we summarize the guidelines as three bullets. Please study the
guide’s thorough descriptions of the FTC guidelines and how to
apply them.
8
 Proximity and placement: place disclosures on the main page
of a publisher site where consumers will notice them and eas-
ily identify the content to which the disclosure applies.
 Prominence: advertising disclosures should stand out from
surrounding content and other material so consumers can
easily read or hear the disclosures.
 Clarity of meaning: disclosures must be clearly and readily
understandable to the audience consuming the content and
the advertising.
A Clear Warning
The FTC concludes the native advertising guide with what is, to
us, a clear shot across the bow—a clear warning to anyone or any
company working with or profiting from native advertisments. Here
is the statement in its entirety:
The FTC’s Enforcement Policy Statement on Deceptively Formatted
Advertisements does not apply just to advertisers. In appropriate
circumstances, the FTC has taken action against other parties who
helped create deceptive advertising content–for example, ad agen-
cies and operators of affiliate advertising networks.
Everyone who participates directly or indirectly in creating or pre-
senting native ads should make sure that ads do not mislead con-
sumers about their commercial nature. Marketers who use native ad-
vertising have a particular interest in ensuring anyone participating
in the promotion of their products is familiar with the basic-truth-
in-advertising principle that an ad should be identifiable as an ad to
consumers.
Opportunity to Comment
The FTC is offering anyone and everyone who wants to comment
on its stance on deceptive advertising and native advertising guide-
lines a chance to comment. We suggest readers of this newsletter
get involved in the discussion.
National Small Business Ombudsman and ten Regional Fairness
Boards collect comments from small businesses about federal
compliance and enforcement activities. Each year, the Ombudsman
evaluates the conduct of these activities and rates each agency’s
responsiveness to small businesses. To comment, call toll-free, in
the United States, 1-888-REGFAIR (1-888.734.3247) or visit www.
sba.gov/ombudsman.
Our Take
While preparing this article, we spent some time browsing vari-
ous major news sites. Some of these are maintained by major pub-
lishing companies, and some are not. We would rather not name
names at this point, but we found many examples on various sites
of deceptive advertising practices (as described by the FTC is its
December policy statement and guide).
We have noticed similar advertising offenses before, but having
read the FTC materials we admit to having gone looking for adver-
tising which crosses the line. And, as noted, we found plenty! For
example, one site’s mobile version shows all news stories in a single
column with one headline (one story) per column segment. Click-
ing on the headline takes the site visitor to the story.
The native advertising materials are shown in-line with the site’s
original editorial content. There are only two signals a cell contains
a headline for native content: the word “Sponsored” in tiny, light
gray type and a dollar-sign logo at the upper right of the column
cell. It was clear to us these two vague indications would not be
enough for most site visitors to understand clicking on this particu-
lar headline will take them to a sponsored content ad masquerad-
ing as an article. Of course, anyone who visits the site on a regular
basis would know, quickly, how to spot and avoid the click bait!
We applaud the FTC’s efforts to warn and guide advertisers and
recommend our readers comply with the guidelines without delay.
Do not rely on deceptive practices to garner clicks and looks, espe-
cially for sponsored content or native advertising. DMR
9
 CMO.com @CMO_com Marketers continue to fly by the seat
of their pants when it comes to a #content strategy http://
cmo.cm/1OKZYs7
 DigitalMarketingRpt @DigMarketingRpt Global In-app
Advertising Market 2015-2019 http://www.prnewswire.
com/news-releases/global-in-app-advertising-mar-
ket-2015-2019.300.197717.html
 DigitalMarketingRpt @DigMarketingRpt Medialets and
Millward Brown Digital Partner on Mobile Ad Effectiveness
Measurement http://www.prnewswire.com/news-releases/
medialets-and-millward-brown-digital-partner-on-mobile-
ad-effectiveness-measurement-300198411.html
 DigitalMarketingRpt @DigMarketingRpt Stagwell Media LLC
Acquires A Majority Stake In Code And Theory http://www.
prnewswire.com/news-releases/stagwell-media-llc-acquires-
a-majority-stake-in-code-and-theory-a-leading-creative-digi-
tal-agency-300199823.html
 DigitalMarketingRpt @DigMarketingRpt American Marketing
Association Selects Episerver To Support Digital Marketing
http://www.prnewswire.com/news-releases/american-market-
ing-association-selects-episerver-to-support-digital-experi-
ence-transformation-300200102.html
 DigitalMarketingRpt @DigMarketingRpt Airport Notification
Systems Evolve into a Diverse Marketing Platform http://www.
prnewswire.com/news-releases/airport-notification-systems-
evolve-into-a-diverse-marketing-platform-300199941.html
 DigitalMarketingRpt @DigMarketingRpt Super Bowl 50 Ads
are Sold Out http://www.prnewswire.com/news-releases/su-
per-bowl-50-ads-are-sold-out—kellogg-school-of-manage-
ment-professors-available-to-discuss-trends-300200044.html
Briefly Noted: Recent Tweets of Interest
 DigitalMarketingRpt @DigMarketingRpt The Cards and Pay-
ments Industry in the UK: Emerging Trends and Opportunities
http://www.prnewswire.com/news-releases/the-cards-and-
payments-industry-in-the-uk-emerging-trends-and-opportu-
nities-to-2019.300.199873.html
 Marketing Job London @Marketingjoblon US digital mar-
keting firm Gravity4 snaps up ad2one’s divisions in Australia
http://ow.ly/39Jwyu
 Marketing Cloud @AdobeMktgCloud Adobe’s Amit Ahuja
talks how marketers can navigate the new data economy.
Read it here: http://bit.ly/1R9Ndrh
 Vanessa DiMauro @vdimauro Marketing in the Digital Age:
Trends to Watch in 2016 http://bit.ly/1OC2UVU
 iab @iab Planning to take the Digital Media Sales Certifica-
tion exam in the new year? Join us on 1/21 for a 1-Day Prep
Course http://bit.ly/1OggRVk
 Ann Handley @MarketingProfs The Top-Rated Marketing Au-
tomation Software Platforms http://buff.ly/1RvcCu3
 Rubicon Project @RubiconProject “The ability to drive 1-to-1
marketing is only getting stronger.” @JoePrusz talks #mobile
w/ @CTATech http://bit.ly/JoePruszRP #CES2016
 DigitalMarketingRpt @DigMarketingRpt Visage Announces
New Hire to Launch Visage 3.0, New Design Tool http://www.
prnewswire.com/news-releases/visage-announces-new-hire-
to-launch-visage-30-new-design-tool-for-content-market-
ers-300200041.html
 Marketing Cloud@AdobeMktgCloud Adobe named a leader
in Gartner Magic Quadrant for Digital Marketing Hubs – see
why: http://adobe.ly/1Sc76hy
Follow us: @thejossgroup and @DigMarketingRpt
10
The Latest Word
ner is scheduled for Tuesday, January 26, 2016. The organization is
working with Upstream Group Founder and CEO Doug Weaver to
launch the event. The closed-door summit will be held at the JW
Marriott Desert Springs Spa and Resort in Palm Desert, California
following the conclusion of the 2016 IAB Annual Leadership Meet-
ing.
IAB member companies already committed to attend the Summit
include AOL, CBS Interactive, Digital First Media, Discovery Digital
Media, Fast Company/Inc. Media, Forbes Media, FOX News Digital,
Google, iHeartMedia, LinkedIn, NBCUniversal, News Corporation,
Pandora, Reuters, The Weather Company, Time Inc., Time Warner
Cable, Triad Retail Media, Turner, WebMD, and Wikia, among oth-
ers.
Discussions will center on questions such as the following:
 How might publishers better navigate the shifting landscape
of video buying and competitive measurement standards to
build robust, stable video revenue businesses?
 What is the immediate and mid-range future of content
monetization in an environment increasingly dominated by
competing distribution platforms?
 How might a publisher’s response to ad blocking foster a
new era of creativity and value for both consumers and ad-
vertisers?
 How must we reimagine the digital seller of the next five
years in order to overcome the talent crisis in our business?
Index Exchange and Krux are sponsoring the inaugural IAB Sales
Leadership Summit. To learn more about the event, to become a
sponsor, or request an invitation, please visit www.iab.com/sales-
leadership2016.
FTC to Conduct Privacy Conference
The Federal Trade Commission (FTC) has announced it will hold a
conference on January 14, 2016 to discuss research and trends re-
lated to consumer privacy and data security. The FTC has called for
research to be presented at the conference. The day-long event is
free to attend and will also be captured and broadcast as a Webinar.
Although the agenda has been set for the meeting, it may not be
too late to participate as a speaker. Researchers who wish to speak
should contact Dan Salsburg, Chief Counsel of the Office of Tech-
nology Research and Investigation, at dsalsburg@ftc.gov if inter-
ested in presenting research findings at this event.
To register to attend, send an e-mail to privacycon@ftc.gov with the
subject line “Preregistration,” and include the first and last name of
the attendees and the organization. Pre-registration does not guar-
antee a seat in the main auditorium, but overflow rooms will be
available if necessary.
The FTC has announced the agenda for the event. Here are some
highlights: FTC Chairwoman Edith Ramirez will deliver opening re-
marks and a panel of speakers will lead off by presenting papers on
the current state of online privacy. Speakers on this panel include
Ibrahim Altaweel from the University of California, Berkeley and
Steven Englehardt from Princeton University.
Other panel discussions and presentations for the day include dis-
cussions on the topic of privacy expectations on the part of con-
sumers and others, privacy realities in consumer genetic testing,
and economics of privacy security measures and programs.
IAB Launches Sales Leadership Summit
The Interactive Advertising Bureau (IAB) has scheduled a Sales
Leadership Summit, an afternoon program and networking din-
11
The Latest Word
IAB Announces Leadership Meeting Speakers
The IAB has announced the keynote speakers for the Annual Lead-
ership Meeting (see above). Keynote speakers announced at this
point include:
 Emily Bazelon, Staff Writer, the New York Times Magazine;
 John Dickerson, Host, Face the Nation, CBS News ;
 David Plotz, CEO, Atlas Obscura Slate Political Gabfest;
 John Costello, President, Global Marketing and Innovation,
Dunkin’ Brands;
 Steve Hasker, Global President, COO, Nielsen;
 Serge Matta CEO, comScore;
 Sridhar Ramaswamy, Senior Vice President of Ads and Com-
merce, Google;
 Marisa Thalberg, Chief Brand Engagement Officer, Taco Bell;
and
 Jimmy Wales, Founder and Board Member, Wikia.
In-app Advertising Report Published
Technavio has published a report on In-app advertising, which
the company defines as “advertisements incorporated into mobile
applications and games.” According to the company’s report, the
global in-app advertising market to grow at a CAGR of 39.97% over
the period 2014-2019.
The report covers the present scenario and growth prospects of
the global in-app advertising market for the period 2015-2019.
The report consolidates revenue generated from the following re-
gions: Americas, APAC, and EMEA. Key vendors operating in this
market include – Chartboost, Flurry, Inmobi, Millennial media, and
Mopub. Other prominent vendors include Byyd-Fiksu, Google, iAd,
Kiip, Matomy Media, Mobile Network, MobPartner, OfferPal Media,
PubMatic, RevMob, and Science.
To learn more about the report or to purchase it, please visit https://
www.reportbuyer.com/product/3287471/global-in-app-advertis-
ing-market-2015-2019.html.
Buffin Announces MarTrends Conference
Buffini and Company has announced the MarTech Trends Confer-
ence, scheduled for January 27 at the San Diego Hilton San Diego
Bayfront Indigo Ballroom, will repeat in a number of United States
cities in 2016.
After the January presentation of the material, the company will
take the eventon the road: to Houston, Phoenix, Orlando, Phila-
delphia, Denver, Boston, Los Angeles, Portland, Chicago, Northern
Virginia, Atlanta, Long Island, and San Francisco. The conference is
free for Buffini and Company customers; the cost for others is $99
with an early bird price of $49.
Medialets and Millward Brown Partner
Medialets has announced the integration of its ad trafficking plat-
form, Servo with Millward Brown Digital’s Ignite Network. The two
companies say the combination will allow advertisers and agencies
to serve mobile ads across all ad formats including video and to
measure the effectiveness of mobile campaigns.
“By integrating the Ignite Network with Medialets’ Servo, we are
further streamlining mobile and desktop measurement for clients,”
said Stephen Jepson, EVP of Growth and Operations at Millward
Brown Digital. “This partnership brings mobile ad serving and brand
measurement together with a single tag, enabling a new level of ef-
ficiency in mobile panel-based measurement.”
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The Joss Group
P.O. Box 682
Gilbertsville, PA 19525
484.206.4233
Publisher/Editor: Molly Joss (molly@thejossgroup.com)
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Please contact the Joss Group for more information and pricing on work group subscription
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© 2016 The Joss Group, LLC. All rights reserved. Reproduction in whole or in part without written permission is strictly prohibited. www.thejossgroup.com
Sending Press Releases to the Joss Group
The Digital Marketing Report welcomes news releases about com-
panies around the world involved in digital marketing technolo-
gies, strategies and tactics.
 We are interested in news related to new products, services,
and technologies.
 We also welcome information about promotions, new hires,
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 We like to hear about news not ready for publication yet, and
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Digital Marketing Report, Vol 1. Number 9

  • 1. Volume 1, Number 9 • January 4, 2016 FROM THE PUBLISHER OF THE SEYBOLD REPORT ISSN: 2380-6850 The FTC Issues Deceptive Advertising Warning and Native Advertising Guide On December 22, 2015 the United States Federal Trade Commission (FTC) issued an enforcement policy statement explaining how the consumer protection principles the FTC has established and enforced for decades apply to different advertising formats—including native ads which look like surrounding non- advertising content. While the FTC statement did not point the finger of blame only at digital advertis- ing, the agency did make sure comments about such advertising were mentioned early and often in the statement. The agency made it clear in the press release announcing the statement its long-standing policies apply to digital media, “The FTC’s policy applies time-tested truth-in-advertising principles to modern media,” said Jessica Rich, Director of the Bureau of Consumer Protection. “People browsing the Web, using social media, or watching videos have a right to know if they are seeing editorial content or an ad.” The same day the FTC released the Enforcement Policy Statement, it issued a much shorter statement entitled Native Advertising: A Guide for Business. This guide, the FTC says, was written and released “to help companies understand, and comply with, the policy statement in the context of native advertising. The business guidance gives examples of when disclosures are necessary to prevent deception and FTC staff guidance on how to make clear and prominent disclosures within the format of native ads.” Briefly Noted: Recent Tweets of Interest The Latest Word FTC to Conduct Privacy Conference IAB Launches Sales Leadership Summit IAB Announces Leadership Meeting Speakers In-app Advertising Report Published Buffini Announces MarTech Trends Conference Medialets and Millward Brown Partner
  • 2. 2 The FTC Issues Deceptive Advertising Warning and Native Advertising Guide On December 22, 2015 the United States Federal Trade Commis- sion (FTC) issued an enforcement policy statement explaining how the consumer protection principles the FTC has established and enforced for decades apply to different advertising formats—in- cluding native ads which look like surrounding non-advertising content. While the FTC statement did not point the finger of blame only at digital advertising, the agency did make sure com- ments about such advertising were mentioned early and often in the statement. The agency made it clear in the press release announcing the state- ment its long-standing policies apply to digital media, “The FTC’s policy applies time-tested truth-in-advertising principles to mod- ern media,” said Jessica Rich, Director of the Bureau of Consum- er Protection. “People browsing the Web, using social media, or watching videos have a right to know if they are seeing editorial content or an ad.” The same day the FTC released the Enforcement Policy Statement, it issued a much shorter statement entitled Native Advertising: A Guide for Business. This guide, the FTC says, was written and re- leased “to help companies understand, and comply with, the policy statement in the context of native advertising. The business guid- ance gives examples of when disclosures are necessary to prevent deception and FTC staff guidance on how to make clear and promi- nent disclosures within the format of native ads.” Every subscriber and all senior executives involved in digital mar- keting should study the 16-page statement and the guide. In this article we provide direct links to the online documents. In this article, as well, we provide several lengthy quotes from the policy statement and the guide. These quotations are presented in italics. We have also summarized some of the major statements in both and did not italicize these. We hope this article provides incentive for reading the complete text of the FTC materials sooner rather than later. We also, as usual, provide an Our Take at the end of the article summarizing our views on the materials presented in this article and the FTC documents. From the Policy Statement Introduction The policy statement jumps right into the discussion with the FTC’s definition of deceptive advertising: Section 5 of the FTC Act prohibits “unfair or deceptive acts or prac- tices in or affecting commerce.” As the Commission set forth in its 1983 Policy Statement on Deception, a representation, omission, or practice is deceptive if it is likely to mislead consumers acting reason- ably under the circumstances and is material to consumers–that is, it Direct link to the enforcement policy statement: https://www.ftc.gov/system/ files/documents/public_statements/896923/151222deceptiveenforcement.pdf.
  • 3. 3 would likely affect the consumer’s conduct or decisions with regard to a product or service. In determining whether an advertisement, including its format, mis- leads consumers, the Commission considers the overall ‘’net impres- sion” it conveys. Any qualifying information necessary to prevent deception must be disclosed prominently and unambiguously to overcome any misleading impression created. Regardless of the Medium The Commission has long held the view advertising and promotional messages not identifiable as advertising to consumers are deceptive if they mislead consumers into believing they are independent, im- partial, or not from the sponsoring advertiser itself. Knowing the source of an advertisement or promotional message typically affects the weight or credibility consumers give it. Such knowledge also may influence whether and to what extent consum- ers choose to interact with content containing a promotional mes- sage. Over the years, the Commission has challenged as deceptive a wide variety of advertising and other commercial message formats, includ- ing “advertorials” that appeared as news stories or feature articles, direct-mail ads disguised as book reviews, infomercials presented as regular television or radio programming, in-person sales practices that misled consumers as to their true nature and purpose, mort- gage relief ads designed to look like solicitations from a government agency, e-mails with deceptive headers that appeared to originate from a consumer’s bank or mortgage company, and paid endorse- ments offered as the independent opinions of impartial consumers or experts... Regardless of the medium in which an advertising or promotional message is disseminated, deception occurs when consumers acting reasonably under the circumstances are misled about its nature or source, and such misleading impression is likely to affect their deci- sions or conduct regarding the advertised product or the advertising. This statement sets forth generally applicable standards on which the Commission relies in making such a determination. Deceptive Advertising Formats The FTC goes on to list, describe, and provide examples of what it had deemed to be deceptive advertising practices. Below we have summarize this portion of the document as a handy list of what marketers, advertisers, and publishers should not do in their adver- tising efforts, online or not: Advertisments Misrepresenting Source or Nature The FTC offered a few examples of deceptive advertising which de- ceive by appearing in a news format or, in some other way, misrep- resent their source or nature. From those example, we chose two which should resonate with digital advertising professionals: The Commission challenged as deceptive a Web site purported to originate from an independent scientific organization. The Commis- sion alleged dietary supplement marketers misrepresented their Web site promoting the health benefits of their children’s supplements was an independent, objective resource for scientific and other informa- tion on treating a specific health condition, and they failed to disclose their relationship to the Web site. In 2002, when online search was a relatively new medium, FTC staff issued guidance concerning the potential for consumers to be de- ceived by paid ads formatted to appear as the regular search results that search engines return in response to consumers’ queries. The Commission concurs with the staff’s conclusion, as articulated in the 2002 guidance and updated guidance issued in 2013 that consumers ordinarily would expect a search engine to return results based on relevance to a search query, as determined by impartial criteria, not based on payment from a third party. Knowing when search results are included or ranked higher based on payment and not on impartial criteria likely would influence con-
  • 4. 4 sumers’ decisions with regard to a search engine and the results it delivers. Thus, failing to clearly and prominently disclose the paid nature of such advertising results is deceptive. Misleading Door Openers The policy statement also makes it clear the FTC is unhappy with advertising which masquerades as content written by impartial third-parties. Here is how the statement describes and defines this kind of deceptive advertising: Other formats that mislead consumers about a commercial message’s nature or purpose also have been alleged or found to be deceptive, such as misleading sales visits and calls and e- mails with falsified sender information. The recent proliferation of natively formatted advertising in digital media has raised questions about whether these adver- tising formats deceive consumers by blurring the distinction between advertising and non-commercial content. Regardless of an ad’s format or medium of dissemination, cer- tain principles undergird the Commission’s deceptive format policy. Deception occurs when an advertisement misleads rea- sonable consumers as to its true nature or source, including that a party other than the sponsoring advertiser is the source of an advertising or promotional message, and such mislead- ing representation is material. In this regard, a misleading representation is material if it is likely to affect consumers’ choices or conduct regarding the advertised product or the advertisement, such as by leading consumers to give greater credence to advertising claims or to interact with advertising with which they otherwise would not have interacted. Such misleadingly formatted advertisements are deceptive even if the product claims communicated are truthful and non-misleading. Regardless of an ad’s format or medium of dissemination, certain principles undergird the Commission’s deceptive format policy. Deception occurs when an advertisement misleads reasonable consumers as to its true nature or source, including that a party other than the sponsoring advertiser is the source of an advertising or promotional message, and such misleading representation is material. Advertising Format Can Mislead, Too The FTC made it clear in the statement it will be looking at not just the content of advertising, but its appearance and placement re- lated to true content. In digital media, consumers can encounter natively formatted ads in a wide variety of situations, including in the news feed or main page of a publisher site, or through other means, such as posts in social media, in search results, and in e-mail. In evaluating whether reasonable consumers would recognize ads as such, the Commission will consider the particular circumstances in which the ads are dis- seminated, including customary expectations based on consumers’ prior experience with the media in which it appears and the impres- sion communicated by the ad’s format. For instance, if a natively formatted ad appearing as a news story is inserted into the content stream of a publisher site that customarily offers news and feature articles, reasonable consumers are unlikely to recognize it as an ad. To the extent an advertisement is targeted to a specific audience, the Commission will consider the effect of the ad’s format on rea- sonable or ordinary members of that targeted group. Certain ads that are formatted like the non-advertising content with which they
  • 5. 5 are presented, however, may be unlikely to mislead consumers act- ing reasonably. Some ads by the very nature of their promotional message communicated may be inherently obvious as advertising to consumers. For instance, if a natively formatted ad with an image of a particular sports car and the headline “Come and Drive [X] today” were in- serted into the news stream of a publisher site, that ad likely would be identifiable as an ad to consumers, even though it was presented in the same visual manner as news stories in the stream. What the FTC Says Advertisers Must Do To avoid having their advertising deemed deceptive by the FTC, ad- vertisers should take specific steps to make sure consumers under- stand when they are seeing or reading advertising material. Most of these boil down to the simple idea of making it clear to even the busiest and most distracted consumer that what they are seeing is advertising and not fact or curated, impartial content. In the policy statement the FTC offers concrete direction and ex- amples to underscore its mandate. Here are some of them: Advertisements may include disclosures to inform consumers of their commercial nature, including text labels, audio disclo- sures, or visual cues distinguishing the ad from other content into which it is integrated. Any disclosure used must be “sufficiently prominent and un- ambiguous to change the apparent meaning of the claims and to leave an accurate impression.” A disclosure’s adequacy ultimately will be measured by wheth- er reasonable consumers perceive the ad as advertising. To be effective, a [advertising] disclosure also generally must be made contemporaneously with the misleading claim it is intended to qualify. For example, disclosures that subsequently inform consumers of a natively formatted ad’s commercial nature after they have clicked on and arrived at another page will not cure any misleading impression created when the ad is presented in the stream of a publisher site. The Statement’s Last Word Although digital media has expanded and changed the way mar- keters reach consumers, all advertisers, including digital advertisers, must comply with the same legal principles regarding deceptive con- duct the Commission has long enforced. This statement sets forth principles of general applicability on which the Commission will rely in determining whether any particular ad- vertising format is deceptive, in violation of Section 5 of the FTC Act. The Commission will find an advertisement deceptive if the ad mis- leads reasonable consumers as to its nature or source, including that a party other than the sponsoring advertiser is its source. Misleading representations of this kind are likely to affect consumers’ decisions or conduct regarding the advertised product or the adver- tisement, including by causing consumers to give greater credence to advertising claims or to interact with advertising content with which they otherwise would not have interacted. Native Advertising: A Guide for Businesses In the native advertising guide the FTC issued the same day as the policy statement discussed in this article, the agency re-affirms its mission to root out deceptive advertising. It also presents several examples of native advertising which it has deemed are deceptive. Key to understanding the examples is an underlying principle the FTC offers: consider the effect the ad, as a whole, has on the con- sumer. We present several of the examples found in the guide in this ar- ticle. Some of them are positive in nature and are intended to show advertisers how to market products and services. Others, though,
  • 6. 6 are cautionary tales. As with the rest of this article, we quote the FTC materials extensively and present the quotations in italics. We recommend all readers of this newsletter visit the FTC Web site and read the full guide. Here is the direct link to the guide (no registration is required): https://www.ftc.gov/tips-advice/business- center/guidance/native-advertising-guide-businesses. Permissible Example The Winged Mercury Company sells running shoes. An ad for the company’s flagship shoe appears on a financial news site. The ad contains an image of the shoe, the headline “Run Fast, Run Smart, Run Winged Mercury,” and a hyperlink to learn more about Winged Mercury shoes’ innovative shock absorption. The color scheme, font, and graphics of the ad look like the format of the financial news that appears on the site. However, the slogan “Run Fast, Run Smart, Run Winged Mercury” together with the mes- sage to learn more about Winged Mercury shoes’ shock absorption likely convey to consumers the commercial nature of the content. In addition, the subject matter of the ad differs substantially from the financial news on the site. Therefore, a specific disclosure the content is an ad is probably not necessary, absent extrinsic evidence to the contrary. Deceptive Example A kitchen cabinet company paid an online lifestyle magazine, Styling Home, to create and publish an article entitled, “10 Must-Haves for a Great Kitchen.” The article, which displays a series of images de- picting well-designed kitchens, appears in the same layout as other articles on the Styling Home site. Most of the images in the article depict and promote the sponsoring advertiser’s products. Thus, the article is an advertisement. The ad’s format, however, is likely to mislead consumers to believe it is an ordinary Styling Home article and reflects the independent views of the Styling Home writer, and not those of the sponsoring advertiser. Therefore, a clear and prominent disclosure of the article’s commer- cial nature is necessary. The more a native ad is similar in format and topic to content on the publisher’s site, the more likely that a disclosure will be necessary to prevent deception. Furthermore, because consumers can navigate to the advertising without first going to the publisher site, a disclosure just on the publisher’s site may not be sufficient. In that instance, disclosures are needed both on the publisher’s site and the click – or tap-into page on which the complete ad appears, unless the click- into page is obviously an ad. Video Game Examples A video game immerses a player in a virtual world. While exploring part of the virtual world, a player sees billboards advertising actual products. The marketers of the advertised products paid the game designers to include the ads in the game. That billboards are adver- tisements is apparent to consumers. To the extent that the billboards are for actual products, consumers are likely to attribute the ads to the sponsoring advertisers and no disclosure is necessary. However, the sponsoring advertisers would be liable for any deceptive product claims on the billboards. The same virtual world game integrates branded products in other ways; for example, game characters wear a specific sunglass brand, drink a particular brand of beverage, and patronize a particular do- nut shop. The sponsoring advertisers paid the game developer to in- clude their branded products in the game. However, the game con- veys no objective claims about the various branded products. Even though consumers may not realize that the sponsored adver- tisers paid for their branded products to appear, disclosure of this paid product placement is not necessary to prevent consumer de- ception because whether the branded products appear in the game because of payment by the sponsoring advertiser or because of the video game developer’s creative judgment is not likely to be material to consumers.
  • 7. 7 Web Site Video Example On its website, a home improvement TV show features “do it your- self” videos hosted by an expert builder who provides advice on home projects. A stain manufacturer, ZYX Paints, pays the show to produce and publish on the home improvement show’s site a video on build- ing a wood deck. In the video, the show’s expert builder uses a ZYX Paints stain and recommends it to protect and maintain the deck. The ad’s look and feel closely resembles other videos posted on the home improvement show’s site, which customarily are unpaid. In this situation, consumers are likely to perceive the video as inde- pendent content reflecting the impartial opinion of the expert builder host or the show’s writers and would not likely attribute it to the sponsoring advertiser. An effective disclosure informing consumers of the video’s commercial nature before they play it is necessary to prevent consumer deception. Another Web Site Video Example Gormella uploads humorous videos to her dedicated channel on a popular video-sharing platform and has cultivated a significant so- cial media following. Among her videos is one she created for a snack food company to promote its new cracker, Salt-Zs. The video, “Crack- ering Up in My Local Supermarket,” includes a thumbnail image of Gormella laughing in a grocery store aisle. In the video, Gorgella starts out in the supermarket aisle and is magically transported to various locales where she talks to people about Salt-Zs. Once consumers view the video, they are likely to identify it as an advertisement and understand that the sponsoring advertiser paid Gormella to promote and endorse its branded product. Nevertheless, before watching the video, consumers likely would not expect it to be advertising, given their experience with other videos she had posted. Thus, the video’s commercial nature should be clear- ly and prominently disclosed before consumers view it. Making Disclosures Effective In the guide, the FTC says advertising disclosures should be: written in clear and unambiguous language; placed as close as possible to the native ads to which they relate; set in easy-to-read fonts and the choice of font color should also make it easy to read the disclosure text; placed in a color shade that stands out against the back- ground; For video ads, the disclsoures should appear on the screen long enough to be noticed, read, and understood; and For audio disclosures, read at a cadence easy for consumers to follow and in words consumers will understand. Disclosures must be clear and prominent on all devices and plat- forms tconsumers may use to view native ads. In assessing effec- tiveness, disclosures should be considered from the perspective of a reasonable consumer. When ads are targeted to a specific audience, the relevant perspec- tive is that of a reasonable or ordinary member of the targeted group. Advertisers should improve their disclosures if there are indications that a significant minority of reasonable consumers do not notice, process, or comprehend them. In a Nutshell The guide also offers three guidelines for creating and placing ef- fective disclosures. The guide offers many details for the guidelines; here we summarize the guidelines as three bullets. Please study the guide’s thorough descriptions of the FTC guidelines and how to apply them.
  • 8. 8 Proximity and placement: place disclosures on the main page of a publisher site where consumers will notice them and eas- ily identify the content to which the disclosure applies. Prominence: advertising disclosures should stand out from surrounding content and other material so consumers can easily read or hear the disclosures. Clarity of meaning: disclosures must be clearly and readily understandable to the audience consuming the content and the advertising. A Clear Warning The FTC concludes the native advertising guide with what is, to us, a clear shot across the bow—a clear warning to anyone or any company working with or profiting from native advertisments. Here is the statement in its entirety: The FTC’s Enforcement Policy Statement on Deceptively Formatted Advertisements does not apply just to advertisers. In appropriate circumstances, the FTC has taken action against other parties who helped create deceptive advertising content–for example, ad agen- cies and operators of affiliate advertising networks. Everyone who participates directly or indirectly in creating or pre- senting native ads should make sure that ads do not mislead con- sumers about their commercial nature. Marketers who use native ad- vertising have a particular interest in ensuring anyone participating in the promotion of their products is familiar with the basic-truth- in-advertising principle that an ad should be identifiable as an ad to consumers. Opportunity to Comment The FTC is offering anyone and everyone who wants to comment on its stance on deceptive advertising and native advertising guide- lines a chance to comment. We suggest readers of this newsletter get involved in the discussion. National Small Business Ombudsman and ten Regional Fairness Boards collect comments from small businesses about federal compliance and enforcement activities. Each year, the Ombudsman evaluates the conduct of these activities and rates each agency’s responsiveness to small businesses. To comment, call toll-free, in the United States, 1-888-REGFAIR (1-888.734.3247) or visit www. sba.gov/ombudsman. Our Take While preparing this article, we spent some time browsing vari- ous major news sites. Some of these are maintained by major pub- lishing companies, and some are not. We would rather not name names at this point, but we found many examples on various sites of deceptive advertising practices (as described by the FTC is its December policy statement and guide). We have noticed similar advertising offenses before, but having read the FTC materials we admit to having gone looking for adver- tising which crosses the line. And, as noted, we found plenty! For example, one site’s mobile version shows all news stories in a single column with one headline (one story) per column segment. Click- ing on the headline takes the site visitor to the story. The native advertising materials are shown in-line with the site’s original editorial content. There are only two signals a cell contains a headline for native content: the word “Sponsored” in tiny, light gray type and a dollar-sign logo at the upper right of the column cell. It was clear to us these two vague indications would not be enough for most site visitors to understand clicking on this particu- lar headline will take them to a sponsored content ad masquerad- ing as an article. Of course, anyone who visits the site on a regular basis would know, quickly, how to spot and avoid the click bait! We applaud the FTC’s efforts to warn and guide advertisers and recommend our readers comply with the guidelines without delay. Do not rely on deceptive practices to garner clicks and looks, espe- cially for sponsored content or native advertising. DMR
  • 9. 9 CMO.com @CMO_com Marketers continue to fly by the seat of their pants when it comes to a #content strategy http:// cmo.cm/1OKZYs7 DigitalMarketingRpt @DigMarketingRpt Global In-app Advertising Market 2015-2019 http://www.prnewswire. com/news-releases/global-in-app-advertising-mar- ket-2015-2019.300.197717.html DigitalMarketingRpt @DigMarketingRpt Medialets and Millward Brown Digital Partner on Mobile Ad Effectiveness Measurement http://www.prnewswire.com/news-releases/ medialets-and-millward-brown-digital-partner-on-mobile- ad-effectiveness-measurement-300198411.html DigitalMarketingRpt @DigMarketingRpt Stagwell Media LLC Acquires A Majority Stake In Code And Theory http://www. prnewswire.com/news-releases/stagwell-media-llc-acquires- a-majority-stake-in-code-and-theory-a-leading-creative-digi- tal-agency-300199823.html DigitalMarketingRpt @DigMarketingRpt American Marketing Association Selects Episerver To Support Digital Marketing http://www.prnewswire.com/news-releases/american-market- ing-association-selects-episerver-to-support-digital-experi- ence-transformation-300200102.html DigitalMarketingRpt @DigMarketingRpt Airport Notification Systems Evolve into a Diverse Marketing Platform http://www. prnewswire.com/news-releases/airport-notification-systems- evolve-into-a-diverse-marketing-platform-300199941.html DigitalMarketingRpt @DigMarketingRpt Super Bowl 50 Ads are Sold Out http://www.prnewswire.com/news-releases/su- per-bowl-50-ads-are-sold-out—kellogg-school-of-manage- ment-professors-available-to-discuss-trends-300200044.html Briefly Noted: Recent Tweets of Interest DigitalMarketingRpt @DigMarketingRpt The Cards and Pay- ments Industry in the UK: Emerging Trends and Opportunities http://www.prnewswire.com/news-releases/the-cards-and- payments-industry-in-the-uk-emerging-trends-and-opportu- nities-to-2019.300.199873.html Marketing Job London @Marketingjoblon US digital mar- keting firm Gravity4 snaps up ad2one’s divisions in Australia http://ow.ly/39Jwyu Marketing Cloud @AdobeMktgCloud Adobe’s Amit Ahuja talks how marketers can navigate the new data economy. Read it here: http://bit.ly/1R9Ndrh Vanessa DiMauro @vdimauro Marketing in the Digital Age: Trends to Watch in 2016 http://bit.ly/1OC2UVU iab @iab Planning to take the Digital Media Sales Certifica- tion exam in the new year? Join us on 1/21 for a 1-Day Prep Course http://bit.ly/1OggRVk Ann Handley @MarketingProfs The Top-Rated Marketing Au- tomation Software Platforms http://buff.ly/1RvcCu3 Rubicon Project @RubiconProject “The ability to drive 1-to-1 marketing is only getting stronger.” @JoePrusz talks #mobile w/ @CTATech http://bit.ly/JoePruszRP #CES2016 DigitalMarketingRpt @DigMarketingRpt Visage Announces New Hire to Launch Visage 3.0, New Design Tool http://www. prnewswire.com/news-releases/visage-announces-new-hire- to-launch-visage-30-new-design-tool-for-content-market- ers-300200041.html Marketing Cloud@AdobeMktgCloud Adobe named a leader in Gartner Magic Quadrant for Digital Marketing Hubs – see why: http://adobe.ly/1Sc76hy Follow us: @thejossgroup and @DigMarketingRpt
  • 10. 10 The Latest Word ner is scheduled for Tuesday, January 26, 2016. The organization is working with Upstream Group Founder and CEO Doug Weaver to launch the event. The closed-door summit will be held at the JW Marriott Desert Springs Spa and Resort in Palm Desert, California following the conclusion of the 2016 IAB Annual Leadership Meet- ing. IAB member companies already committed to attend the Summit include AOL, CBS Interactive, Digital First Media, Discovery Digital Media, Fast Company/Inc. Media, Forbes Media, FOX News Digital, Google, iHeartMedia, LinkedIn, NBCUniversal, News Corporation, Pandora, Reuters, The Weather Company, Time Inc., Time Warner Cable, Triad Retail Media, Turner, WebMD, and Wikia, among oth- ers. Discussions will center on questions such as the following: How might publishers better navigate the shifting landscape of video buying and competitive measurement standards to build robust, stable video revenue businesses? What is the immediate and mid-range future of content monetization in an environment increasingly dominated by competing distribution platforms? How might a publisher’s response to ad blocking foster a new era of creativity and value for both consumers and ad- vertisers? How must we reimagine the digital seller of the next five years in order to overcome the talent crisis in our business? Index Exchange and Krux are sponsoring the inaugural IAB Sales Leadership Summit. To learn more about the event, to become a sponsor, or request an invitation, please visit www.iab.com/sales- leadership2016. FTC to Conduct Privacy Conference The Federal Trade Commission (FTC) has announced it will hold a conference on January 14, 2016 to discuss research and trends re- lated to consumer privacy and data security. The FTC has called for research to be presented at the conference. The day-long event is free to attend and will also be captured and broadcast as a Webinar. Although the agenda has been set for the meeting, it may not be too late to participate as a speaker. Researchers who wish to speak should contact Dan Salsburg, Chief Counsel of the Office of Tech- nology Research and Investigation, at dsalsburg@ftc.gov if inter- ested in presenting research findings at this event. To register to attend, send an e-mail to privacycon@ftc.gov with the subject line “Preregistration,” and include the first and last name of the attendees and the organization. Pre-registration does not guar- antee a seat in the main auditorium, but overflow rooms will be available if necessary. The FTC has announced the agenda for the event. Here are some highlights: FTC Chairwoman Edith Ramirez will deliver opening re- marks and a panel of speakers will lead off by presenting papers on the current state of online privacy. Speakers on this panel include Ibrahim Altaweel from the University of California, Berkeley and Steven Englehardt from Princeton University. Other panel discussions and presentations for the day include dis- cussions on the topic of privacy expectations on the part of con- sumers and others, privacy realities in consumer genetic testing, and economics of privacy security measures and programs. IAB Launches Sales Leadership Summit The Interactive Advertising Bureau (IAB) has scheduled a Sales Leadership Summit, an afternoon program and networking din-
  • 11. 11 The Latest Word IAB Announces Leadership Meeting Speakers The IAB has announced the keynote speakers for the Annual Lead- ership Meeting (see above). Keynote speakers announced at this point include: Emily Bazelon, Staff Writer, the New York Times Magazine; John Dickerson, Host, Face the Nation, CBS News ; David Plotz, CEO, Atlas Obscura Slate Political Gabfest; John Costello, President, Global Marketing and Innovation, Dunkin’ Brands; Steve Hasker, Global President, COO, Nielsen; Serge Matta CEO, comScore; Sridhar Ramaswamy, Senior Vice President of Ads and Com- merce, Google; Marisa Thalberg, Chief Brand Engagement Officer, Taco Bell; and Jimmy Wales, Founder and Board Member, Wikia. In-app Advertising Report Published Technavio has published a report on In-app advertising, which the company defines as “advertisements incorporated into mobile applications and games.” According to the company’s report, the global in-app advertising market to grow at a CAGR of 39.97% over the period 2014-2019. The report covers the present scenario and growth prospects of the global in-app advertising market for the period 2015-2019. The report consolidates revenue generated from the following re- gions: Americas, APAC, and EMEA. Key vendors operating in this market include – Chartboost, Flurry, Inmobi, Millennial media, and Mopub. Other prominent vendors include Byyd-Fiksu, Google, iAd, Kiip, Matomy Media, Mobile Network, MobPartner, OfferPal Media, PubMatic, RevMob, and Science. To learn more about the report or to purchase it, please visit https:// www.reportbuyer.com/product/3287471/global-in-app-advertis- ing-market-2015-2019.html. Buffin Announces MarTrends Conference Buffini and Company has announced the MarTech Trends Confer- ence, scheduled for January 27 at the San Diego Hilton San Diego Bayfront Indigo Ballroom, will repeat in a number of United States cities in 2016. After the January presentation of the material, the company will take the eventon the road: to Houston, Phoenix, Orlando, Phila- delphia, Denver, Boston, Los Angeles, Portland, Chicago, Northern Virginia, Atlanta, Long Island, and San Francisco. The conference is free for Buffini and Company customers; the cost for others is $99 with an early bird price of $49. Medialets and Millward Brown Partner Medialets has announced the integration of its ad trafficking plat- form, Servo with Millward Brown Digital’s Ignite Network. The two companies say the combination will allow advertisers and agencies to serve mobile ads across all ad formats including video and to measure the effectiveness of mobile campaigns. “By integrating the Ignite Network with Medialets’ Servo, we are further streamlining mobile and desktop measurement for clients,” said Stephen Jepson, EVP of Growth and Operations at Millward Brown Digital. “This partnership brings mobile ad serving and brand measurement together with a single tag, enabling a new level of ef- ficiency in mobile panel-based measurement.”
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