The former places the product within the content, whereas in native marketing, which is legally permissible in the US to the extent that there is sufficient disclosure, the product and content are merged. Product placement (embedded marketing) is a precursor to native advertising.
Readers may have difficulty immediately identifying them as advertisements due to their ambiguous nature, especially when deceptive labels such as "From around the web" are used. These ads reduce a consumers' ad recognition by blending the ad into the native content of the platform, even if it is labeled as "sponsored" or "branded" content. The word native refers to this coherence of the content with the other media that appear on the platform. In many cases it functions like an advertorial, and manifests as a video, article or editorial.
Native advertising, also called sponsored content, is a type of advertising that matches the form and function of the platform upon which it appears.
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