Transparency matrix of native advertising: Enhancing transparency in online news media

This study explicates the association between native advertising and online news media transparency. This study took a qualitative approach and based on extant literature and industry practices, developed a matrix, called the transparency matrix of native advertising (TMNA), to show how different levels of transparency can be enhanced by utilizing various practices. The TMNA is based on two factors: communication of sponsorship and visible distinction of native advertising from editorial or main stories. The TMNA proposed that the presence of communication of sponsorship brings the perception of transparency to either a high or a moderate level. Visual distinctiveness, on the other hand, does not have the ability to show higher transparency, unless tied with sponsorship communication. The study proposed that a higher level of transparency can be enhanced by utilizing both factors vigorously. A lack of such practices would lead to minimum transparency. The best practice for online news media would be to place themselves in the quadrant of high transparency in the TMNA and avoid the rest. This study has twofold contributions to the existing literature, firstly, this matrix can guide the transparency research on native advertising, and secondly, in practice, this matrix can be used to employ strategies for enhancing transparency and improve credibility of online news media.