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In the worst case you may have thought that this article was
written by a news reporter? What if I told you that this article is a part of a disturbing trend called “news based
advertising” wherein corporations sponsor content that is shared with users and intended to in uence their
decisions. In this article we will understand more about news based advertising as well as the ethical implications
that impact the issue.
This sparked o a new trend. Companies like Buzzfeed have come into existence and have brought along the news
based advertising model. Consumers tend to engage a lot more with such content. Not only do they read the content
avidly, but they also share the content on social media giving it their stamp of approval. The method has become so
e ective that traditional media companies like Time Inc have also created special teams to meet the demands of
their clients. Corporate behemoths like General Electric and Chevron have also been known to extensively use news
based advertisements.
Media houses like Buzzfeed and ScoopWhoop are required to disclose that these articles are sponsored by
corporations. However, the disclosure happens in a form that is not obvious and di cult to nd. Hence, the law is
followed in letter but not is spirit.
Consider for instance, if Volkswagen has an extremely cozy relationship with media houses. Then it can in uence
news reports on how its carbon emission negligence is reported! The society needs to know the full extent of
negligence that has been committed by a pro t mongering corporation but the same may be prevented or
misdirected by news reporters because of their nancial dependence on such rms.
This is one of those situations where the interests of business and the interests of society are clearly at con ict with
one another. Society deserves to have an unbiased and unin uenced reporting of the events around them. News
based advertising is a deterrent to this independence. As mainstream companies are joining this trend, the future
looks dangerously unstable and bleak!
This has put pressure on all media houses. The ones that are indulging in this seemingly unethical practice are
reaping nancial rewards. This has made them the darling of investors on stock exchanged. The companies that still
choose to be ethical are facing grim nancial situations. They face the danger of hostile takeovers from other
companies.
As a result, pretty much every media house is on board with news based advertising. Some are using their own brand
to do so whereas others are more careful and have created subsidiaries to detach themselves from this questionable
practice.