Native advertising is one of the fast-growing strategies in digital media and advertising today. Due to the inherent nature of native advertising as paid advertising that is blended with the content of where it is published, it blurs the line between what part is commercial content and which part is non-commercial content. This study examines this phenomenon by using YouTube content as publisher, using ad locations and congruency as indicators in predicting brand attitudes through sponsorship transparency, utilitarian attitude and source credibility. Drawing on Social Influence Theory, this study exhibited that consumers’ belief or behaviors can be influenced by others through meaning transfer. The findings indicate that congruency is a factor that positively contributes to positive brand attitudes whereas ad location does not in the context of Native advertising.

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