Disclosure of Vlog Advertising Targeted to Children

Influencers can disclose vlog advertising by implementing a platform-generated disclosure or by generating their own disclosure. This study aims to investigate whether and how these two types of disclosures differentially affect children's responses toward the sponsored content and the influencer. To do so, a two (platform-generated [PG] disclosure: no PG disclosure versus PG disclosure) by three (influencer-generated [IG] disclosure: no IG disclosure versus no commercial interference disclosure versus commercial interference disclosure) between-subjects experimental study was conducted among 190 children (aged ten to twelve). The results show that both types of disclosures increased children's recognition of vlog advertising; however, children's advertising literacy (i.e. their understanding of influencer marketing and skepticism toward the ad) was less activated when the influencer specifically indicated that there was no commercial interference of the brand. In addition, besides being more beneficial for influencers (by not negatively affecting children's evaluations of the influencer), an IG disclosure also showed to be more favorable for brands, as it increased brand effects among children, whereas a PG disclosure decreased these brand effects.     

Negative Consequences of Storytelling in Native Advertising

Native advertising and storytelling are both increasingly popular advertising strategies. This research explores the effectiveness of storytelling in a native advertising context on social media. While most research recommends the use of stories as a way to build trust and relationships with consumers, the current research suggests that in the form of native ads on social media, narratives may be less effective when compared to informational native ads. Two studies find that even when advertising cues such as disclosure labels and brand presence are prominently located, consumers are less likely to recognize the advertising nature of narrative native ads when compared to informational native ads. Lower levels of advertising recognition are associated with increased perceptions of manipulative intentions by the advertiser, which has a negative influence on consumers' attitudes toward the ad. The findings suggest that native ads that clearly communicate their advertising nature through cues such as an informational execution, high brand presence, and prominent disclosure labeling are more effective than a narrative execution style.     

The Development and Testing of a Child-inspired Advertising Disclosure to Alert Children to Digital and Embedded Advertising

Via three studies, this article aims to develop and test an advertising disclosure which is understandable for children (ages six to 12 years old) and which can alert them to different types of advertising in multiple media formats. First, cocreation workshops with 24 children (ages eight to 11 years old) were held to determine a selection of disclosure designs based on insights from the target group. Second, two eye-tracking studies among 32 children (ages six to 12 years old) were conducted to test which of these disclosure designs attracted the most attention when the disclosures were integrated into a media context. These studies led to the selection of the final advertising disclosure: a black rectangular graphic with the word Reclame! (i.e., Dutch for “Advertising!”) in yellow letters. Finally, a two-by-two, between-subjects experimental study (disclosure design: existing versus child-inspired advertising disclosure; advertising format: brand placement versus online banner advertising) with 157 children (ages 10 and 11 years old) was performed to test the effectiveness of the child-inspired disclosure by comparing it with existing ones. This study not only showed that children recognized, understood, and liked the child-inspired disclosure better than the existing ones, but they were also better able to recognize advertising after exposure to this child-inspired advertising disclosure.     

An Empirical Investigation into the Perception of Vehicle Source Effects

Advertising managers, educators and regulators alike have observed the growth of federal programs mandating the form or content of consumer information disclosures. Although this activity often has been warranted, at times these programs may have had unintended “deceptive” effects. Examples might include the USDA's food grading systems, some of the FTC's corrective advertising activities and certain programs of affirmative disclosure of product information (e.g, gasoline octane ratings and the cigarette health warning). To avoid these problems one must give attention to principles learned from communication and attitude research. Further, such programs will benefit greatly from before-after impact evaluation studies to insure that results correspond with objectives.     

Using Eye Tracking to Understand the Effects of Brand Placement Disclosure Types in Television Programs

This eye tracking experiment (N = 149) investigates the influence of different ways of disclosing brand placement on viewers’ visual attention, the use of persuasion knowledge, and brand responses. The results showed that (1) a combination of text (“This program contains product placement”) and a product placement (PP) logo was most effective in enhancing the recognition of advertising and that a logo alone was least effective; (2) this effect was mediated by viewers’ visual attention to the disclosure and brand placement; and (3) the recognition of advertising consequently increased brand memory and led to more negative brand attitudes.     

How,why, and when disclosure type matters for influencer marketing

Consumers’ changing media consumption behaviors and skepticism toward traditional forms of advertising have prompted the growth of influencer marketing. Even as regulatory authorities call on brands and influencers to disclose the posts as advertising, no consistent guidelines exist. The distinct effects of self-generated versus platform-initiated disclosures also remain unclear, nor has research addressed the interplay of key influencer characteristics and marketing disclosures. This article reports on findings from the first academic field study of influencer marketing disclosures, as well as three experimental studies, which indicate that disclosure is a double-edged sword. When provided through a platform-initiated branded content tool, disclosure consistently exerts the strongest effect on perceptions of advertising, negatively relating to influencer trustworthiness and consumer engagement. The effects of disclosure type also depend on the number of followers and number of previously endorsed products (i.e., influencer characteristics). Yet, consumers also express appreciation for transparency when influencers disclose posts as advertising, which increases perceived trustworthiness of the influencer and engagement with the post. The implications of these findings should inform choices by public policy makers, brand managers, and influencers.     

Recognizing Native Ads as Advertising: Attitudinal and Behavioral Consequences

This study assessed consumers' initial reactions to in‐feed native ads appearing as news content. In particular, it focuses on consumers' recognition of advertising when they realize that content they had thought were news stories had in fact been advertising. Recognition of advertising made consumers infer that advertisers had deliberately manipulated them. Consequently, consumers engaged less with the message, had less positive attitudes toward the brand, and were less likely to purchase and share. The results demonstrated the mechanisms through which the two mediators, manipulative intent and message engagement, lowered brand attitude, purchase intention, and sharing intention. In addition, ad disclosure made more people recognize the ad when they were exposed to it than when it was not disclosed as an ad.     

Conceptualization and Exploration of Attitude toward Advertising Disclosures and Its Impact on Perceptions of Manipulative Intent

Significant research has been conducted in an effort to understand how varying elements of disclosures (e.g., size, placement, complexity) in advertisements impact consumers' abilities to understand and recall the disclosed message. Although it is important to research the effectiveness of disclosures, advertisers may have additional concerns if the mere presence of a disclosure impacts consumers' perceptions of the company, advertisement, or brand. Little research currently exists examining the notion of consumers' attitudes toward advertising disclosures or how they might impact the effectiveness of the disclosed message, attitude toward a given communication, or overall evaluation of the brand. We introduce the concept of attitude toward advertising disclosures and develop a scale to measure consumers' attitudes toward disclosed messages. The resultant 14‐item, multidimensional scale is then used to demonstrate how attitude toward advertising disclosures plays a moderating role in influencing consumers' perceptions of manipulative intent.     

Understanding “Native Advertising” from the Perspective of Communication Strategies

Native advertising is at the intersection of strategic communication and journalism information. As a type of commercial hybrid content, its distinctiveness as a promotional method is questioned. As a vehicle for informing, it blends in with the surrounding editorial causes concern. Thus, the purpose of this study is to deconstruct “native advertising” and form a clearer understanding of this emerging and changing concept. To serve this purpose, this study conducted content analysis of communication strategies of 151 native advertisements sampled from three news websites. The findings revealed that more than half of the sample cited sources and disclosed sponsors. Congruence was largely based upon function-based associations. About one-third of the native advertisements offered how-to advice and addressed connections between the sponsor and the story. Sometimes, the sponsor was not mentioned in the stories at all. The findings suggest that native advertising exhibits certain features of sponsored content, differs from traditional advertising or advertorials, and imitates journalistic style and format. This study also recommends that strategic persuasion goals should be balanced against congruence with the style and the format of the surrounding journalism.     

How audience and disclosure characteristics influence memory of sponsorship disclosures

The proliferation of sponsored content (e.g., product placement) in television programmes has been a cause of concern as it may violate the right of consumers to know that a message is sponsored. Therefore, new regulations obligate broadcasters to disclose sponsored content. To achieve its goal of informing the consumer, a sponsorship disclosure must be effectively communicated. This study explores how audience and disclosure characteristics influence memory of sponsorship disclosures. Results show that a disclosure at the beginning of a programme results in less disclosure memory compared to a disclosure in the middle or at the end of a programme. The duration of the disclosure does not directly influence disclosure memory, but a disclosure is best remembered when it is displayed longer and viewers are familiar with the programme. Additionally, viewers' programme and disclosure familiarity increase the chance that a disclosure is remembered, while programme involvement decreases disclosure memory. These results contribute to advertising theory and may be useful in the development of effective sponsorship disclosures, as they indicate several conditions under which disclosures are more likely to be remembered.     

Effects of Disclosing Influencer Marketing in Videos: An Eye Tracking Study Among Children in Early Adolescence

This study focused on the effects of sponsorship disclosure timing on children's ability to understand that social influencer videos are sponsored. The study also investigated how sponsorship disclosure timing affects children's attitudes toward the sponsoring brand, the video, and the influencer. An experiment among 272 children in early adolescence (10–13 years of age) was conducted using eye tracking. Results show that a disclosure shown prior to the start of the videos leads to more visual attention than a disclosure shown concurrently with the start of videos. Consequently, disclosure prior to the start of videos is better processed, as indicated by disclosure memory, which then leads to a better understanding that the content is sponsored. This understanding evokes a more critical attitude toward the sponsored content in the video, and results in less positive attitudes toward the brands, the videos, and the influencers. Theoretically, this study provides insights into the mechanisms that explain disclosure timing effects among children in early adolescence. Practically, this study offers recommendations to policy makers to develop sponsorship disclosures that can increase transparency of online embedded advertising to minors.     

“This Post Is Sponsored”: Effects of Sponsorship Disclosure on Persuasion Knowledge and Electronic Word of Mouth in the Context of Facebook

Social media, such as Facebook, offer brands the opportunity to reach their target audience in a less obtrusive way than traditional media, through sponsored posts. Regulations require marketers to explicitly inform consumers about the commercial nature of these posts. This study addresses the effects of sponsorship disclosures by means of a 2 (no disclosure vs. the sponsorship disclosure ‘Sponsored’) × 2 (source: celebrity endorser vs. brand) experiment. Results suggest that a sponsorship disclosure only influences the use of persuasion knowledge when the post is disseminated by a celebrity. Moreover, a disclosure starts a process in which the recognition of advertising (i.e., the activation of conceptual persuasion knowledge) causes consumers to develop distrusting beliefs about the post (i.e., higher attitudinal persuasion knowledge), and in turn, decreases their intention to engage in electronic word of mouth.     

Disclosures Exposed: Banner Ad Disclosure Adherence to FTC Guidance in the Top 100 U.S. Web Sites

With banner ads accounting for one‐fifth of the $16.4 billion spent on Internet advertising in 2006, this advertising format has become an integral marketing communications tool. Inclusion of required disclosure language and presenting those disclosures in a clear and conspicuous manner are important areas of regulatory interest and in recent years have extended to the online environment. This study examines the extent to which disclosures in banner ads in the top 100 U.S. Web sites adhere to Federal Trade Commission guidance in these two areas. Additionally, this study compares the banner ad results for clear and conspicuous presentation to those of a prior study that examined television advertising. All the banner ads in the study contained at least one disclosure; yet, adherence was mixed in terms of providing all the required information clearly and conspicuously. Implications of these results are discussed.     

Sponsorship Disclosures of Native Advertising: Clarity and Prominence

The purpose of this study is to investigate the display of sponsorship disclosures in native advertisements. Based on the native ad guidelines of the Federal Trade Commission, we assessed the clarity and prominence of sponsorship disclosures used by major media outlets. Eighty‐three native ads posted in high‐traffic media Web sites were analyzed. Results revealed problems mostly related to clarity of disclosures. In labeling, various terms were used, including the media's own neologisms, which appear to be very ambiguous. In particular, when republished via social media, the identification of sponsors and the provision of disclosures were more problematic. Results point to the need for more proper and specific guidelines, and active self‐regulation by the industry.     

The “Decorative” Female Model: Sexual Stimuli and the Recognition of Advertisements

Recent evidence suggests an increasing prevalence of “decorative” or functionless female models in print advertising (2, 3, 4, 5). Results of a test of the impact of “decorative” models indicate, however, that models facilitate recognition of model/related information (p< .05) but do little to increase the recognition of brand names. This finding is discussed in terms of a distinction between a product's image and memory of a product's brand name. Implications of this finding are also discussed for practitioners utilizing “decorative” models in their advertising.     

Adherence of Retirement Mutual Fund Providers to the Securities and Exchange Commission (SEC)’s Advertising Guidance: Provision and Readability of Advertising Disclosure

This research provides an initial investigation of whether US retirement mutual fund providers complied with the Investment Company Advertising Rules (2003) adopted by the Securities and Exchange Commission (SEC). A content analysis was used to examine advertising disclosures presented in 953 retirement mutual fund magazine advertisements from 2004 to 2010 based on SEC’s advertising guidance. The results suggest that during the given period, retirement mutual fund providers generally presented mandatory and triggered advertising disclosures, but paid less attention to the readability of advertising disclosures. Implications for regulators, consumer groups, and financial services marketers are discussed in light of financial literacy and consumer welfare.     

When less is more: the impact of macro and micro social media influencers’ disclosure

ABSTRACT

There are growing discussions of social media influencers and their effectiveness in endorsing products. Further, recent policy regulations are requiring social media influencers to disclose sponsored content when using a form of native advertising. This research examined the effect of macro-influencers (high likes) and micro-influencers (low likes) and their disclosure of native advertising sponsorship on consumer evaluations of products. Results from a 2 × 2 experiment first show that consumers exposed to the micro-influencer condition report higher levels of product knowledge, and consumers exposed to the disclosure condition reported the products endorsed by social media influencers to be more attractive. The results also show that when exposed to micro-influencers who disclose, consumers have higher levels of purchase intentions than when exposed to macro-influencers who do not disclose, as well as higher purchase intentions than for posts where sponsorship is not disclosed by influencers. The important findings of this research for theory, practice and policy are discussed.     

Engagement with Social Media and Social Media Advertising: The Differentiating Role of Platform Type

This study examines how consumers’ engagement with social media platforms drives engagement with advertising embedded in these platforms and, subsequently, evaluations of this advertising. Our survey (N = 1,346, aged 13 and older) maps social media users’ engagement experiences with Facebook, YouTube, LinkedIn, Twitter, Google+, Instagram, Pinterest, and Snapchat and their experiences with and evaluations of advertising on these platforms. Our findings show that engagement is highly context specific; it comprises various types of experiences on each social media platform such that each is experienced in a unique way. Moreover, on each platform, a different set of experiences is related to advertising evaluations. It is further shown that engagement with social media advertising itself is key in explaining how social media engagement is related to advertising evaluations. The general conclusion is that there is no such thing as “social media.”     

Perceptions of Intentional Wrongdoing and Peer Reporting Behavior Among Registered Nurses

Researchers and practitioners have devoted considerable attention to firms' policies regarding discretionary disclosures. Prior studies argue that firms increase demand for their debt and equity issues and, thus, lower their cost of capital, by providing more informative disclosures. However, empirical research has generally not been able to document significant benefits from increased disclosure.This paper proposes an alternative explanation – firms disclose because it is the socially responsible thing to do. We argue that companies have incentives to engage in stakeholder management by undertaking socially responsible activities and that providing extensive and informative disclosures is one such practice.We examine the relationship between firms' disclosures and measures of social responsibility. We use ratings provided by the Council on Economic Priorities as proxies for the degree of social responsibility adopted by the sample firms. Disclosure rankings provided by the annual Association for Investment Management and Research Corporate Information Committee Reports (AIMR Reports) are used to measure disclosure level.Our results indicate that there is a positive relationship between disclosure level and corporate social responsibility. That is, firms that engage in socially responsive activities provide more informative and/or extensive disclosures than do companies that are less focused on advancing social goals. In addition, we find that socially responsible firms are more likely to provide this increased disclosure through better investor relations practices. These results support our contention that increased disclosure is a form of socially responsible behavior.     

Narrative Transportation and Paratextual Features of Social Media in Viral Advertising

This study establishes that the experience of narrative transportation has a positive influence on viral advertising. The relative strength of this relationship, however, depends on several boundary conditions associated with the paratextual features of social networking service (SNS) environments. Specifically, it is stronger if the senders and intended receivers have personal ties. Moreover, the influence of narrative transportation is negatively moderated by advertising disclosure that elicits persuasion knowledge. Finally, the negative effect of persuasion knowledge is reduced if the ad appears with a higher number of “likes,” which increases social proof for viral ads. Implications regarding viral advertising and social media behaviors are discussed.