“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.     

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.     

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.     

Going Native: Effects of Disclosure Position and Language on the Recognition and Evaluation of Online Native Advertising

Despite recent industry attention, questions remain about how native advertising is perceived and processed by consumers. Two experiments examined effects of language and positioning in native advertising disclosures on recognition of the content as advertising, effects of recognition on brand and publisher evaluations, and whether disclosure position affects visual attention. Findings show that middle or bottom positioning and wording using “advertising” or “sponsored” increased advertising recognition compared to other conditions, and ad recognition generally led to more negative evaluations. Visual attention mediated the relationship between disclosure position and advertising recognition. Theoretical, practical, and regulatory implications for disclosures in native advertising are discussed.     

Normativity in Environmental Reporting: A Comparison of Three Regimes

Normativity is assessed as we evaluate and compare the environmental reporting practices of a sample of French and Canadian companies through the lens of institutional legitimacy. More specifically, we examine how French and Canadian firms changed their reporting practices in reaction to the promulgation of laws and regulations in their respective countries, i.e., the NER and Grenelle II Acts in France, and National Instrument 51-102 and CSA Staff Notice NR 51-333, issued by the Canadian Securities Administrators. The firms’ voluntary disclosures according to GRI guidelines are also investigated. Substantive legitimacy theory is used to explore the level of substantive disclosures provided by Canadian and French firms. The findings reveal that the French parliamentary regime is more successful than the Canadian stock exchange regulation in triggering environmental reporting, and that the GRI combined with local regimes prompts environmental disclosures. Notwithstanding the improvements in environmental reporting under all three regimes, a very low level of substantive disclosure is noted in both countries.     

The Development of a Process for Evaluating Marketing Sponsorships

Despite the increasing resources being allocated from marketing budgets to sponsorship, effective evaluation is relatively rare, and sponsorship evaluation methods are often proprietary in nature. This paper reports on a research project designed to develop a process model for evaluating sponsorships. An initial version was conceived from agency theory, the evaluation literature, and sponsorship writings. This draft was then assessed by sponsorship experts during a series of 14 in‐depth interviews. Based on these analyses, a final version of the process model was proposed. The revised version was then adopted to evaluate—as a demonstrative example—a specific sponsorship. Results of this case and recommendations for future research and practice in sponsorship evaluation are presented. Copyright © 2011 ASAC. Published by John Wiley & Sons, Ltd.     

The Impact of Warnings,Disclaimers, and Product Experience on Consumers’ Perceptions of Dietary Supplements

Two experiments explored the impact of disclosures (warning and disclaimer) and product experience (heavy, light, and nonusers) on consumers’ perceptions of dietary supplements. In general, the government‐mandated disclaimer did not impact consumers’ beliefs about either the efficacy or the safety of dietary supplements; for most consumers, the disclaimer is unlikely to achieve its intended results. However, when product experience was examined, analyses show that heavy product users responded differently to the disclosures than did light product users and nonusers. Results point to the importance of understanding the influence of individual differences on the interpretation of product disclosures by specific consumer segments.     

Understanding Non-Profit and For-Profit Social Marketing on Social Media: The Case of Anti-Texting While Driving

Previous studies suggest that consumers tend to infer more negative motives of for-profit sponsorship on social cause than to non-profits. The current study is aimed at identifying potential effective strategies for for-profit organizations to engage in social marketing efforts. Results showed that participants expressed lower texting while driving intentions when the message was initiated by a non-profit than a for-profit organization. For-profit messages were more likely to elicit desirable persuasive effects if their business offering was congruent with the social cause. Participants' intentions to interact with promotion messages on social media predicted their offline behavioral intentions regarding the promoted behaviors.     

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.     

H‐1B and L‐1 visa‐sponsored guest workers in the USA: An analysis of the strategic impact of Indian and other firms

Organizational sponsors of guest workers to the United States claim foreign‐born workers enhance productivity and innovation. Drawing upon a unique dataset of all organizational sponsors of guest workers in the United States from 1993 to 2008, we find a 10% increase in guest worker sponsorship is associated with a 2.2–3.1% increase in patenting within firms. Furthermore, we examine how organizational industry and country of origin are associated with the effects of guest worker sponsorship on organization‐level measures of innovation and productivity. Despite an overall within‐firm positive association between sponsorship and patenting, higher percentages of a firm's workers on visas are associated with lower patenting, but higher labor productivity. Firm‐level industry and country of origin heterogeneity is significantly related to the relationship between guest work sponsorship and both patent‐related and nonpatent investment in innovation such as research and development (R&D) expenditures. Semiconductor firms and universities spend more on R&D in conjunction with guest worker sponsorship, while semiconductor companies and hardware companies patent less. We discuss theoretical and human resource implications, and offer suggestions for future research.     

Disclosure of Downside Risk and Investors' Use of Qualitative Information: Evidence from the IPO Prospectus's Risk Factor Section

I use the context of a company's initial public offering (IPO) of equity securities as a capital‐market setting to empirically study the economic consequences of risk factor disclosures. Using data from Australian IPOs, I examine the relation of textual risk disclosures in the prospectus to initial underpricing. I find that the quantity of disclosures in the risk factor section itself has no significant impact on initial underpricing. However, an increase in the informativeness of risk factor disclosures is associated with lower IPO underpricing. My results suggest that IPOs that provide informative risk factor disclosures have less ex ante uncertainty, in the sense that the disclosures help investors estimate the dispersion of secondary market value. The effect of informative risk factor disclosures on IPO underpricing is more pronounced for IPOs with less prestigious lead underwriters and is mainly driven by younger firms, smaller firms, and firms with poorer operating performance prior to their IPOs. Collectively, my findings suggest that informative disclosures of downside risk are useful for investors to evaluate IPOs.     

Emerging Strategies for Sponsorship on the Internet

Internet sponsorship is a rapidly evolving communications platform at a fledgling stage for sponsorship-linked marketing. The complex and involving nature of the phenomena offers new research opportunities and the potential for innovative marketing strategies. The Internet presents the opportunity to combine aspects of traditional event/activity sponsorship and media sponsorship innovatively and to extend marketing strategy in new directions. This paper presents an overview of emerging Internet sponsorships strategies, and explores sponsorship extension strategies that relate to media, brand, channel development, consumer experience, and networking. Exploratory case studies confirm and extend the initial strategy discussion. Finally, future directions for researchers and practitioners are suggested.     

Investigating the Influence of a Joint Sponsorship of Rival Teams on Supporter Attitudes and Brand Preferences

The sponsorship of football is a multi‐million pound industry. Sponsors hope that supporters' enthusiasm for their team will translate into long‐term benefits for the sponsor. However, the intensity of team rivalry means that a sponsorship may also alienate opposing supporters. The rival Glasgow clubs, Celtic and Rangers, therefore undertook a joint sponsorship arrangement with the communications company NTL. This paper investigates how the benefits obtained compared to those that may have been expected from a single sponsorship. While the sponsorship was very effective in creating awareness for NTL, ambivalent attitudes were found towards the company. The most committed supporters were the least accepting of the sponsorship and the expected positive relationship between support for the club and brand preference for NTL was not found.     

The effectiveness of image congruence and the moderating effects of sponsor motive and cheering event fit in sponsorship

Using the case study data of the South Korea 2002 and 2006 World Cup sponsorship campaigns, this study examined (1) whether more favourable sponsorship response occurs as image congruence between a sponsor and the World Cup increases, and whether (2)consumer attributions of a sponsor’s motives in sponsoring the World Cup and (3) a sponsor’s perceived fit in aiding World Cup cheering events, namely cheering event fit, moderate image congruence’s effects on sponsorship response. Consistent with prior research, results suggest that high vs low image congruence sponsorships generate more favourable responses to the sponsorship, as measured by attitudes and intentions at three different levels of the hierarchy of effects. Results also show that high cheering event fit leads to more favourable sponsorship response. Furthermore, a negative interaction between image congruence and cheering event fit indicates that, albeit still significant and positive, the effect of image congruence on sponsorship response becomes significantly weaker at higher levels of cheering event fit than at lower levels of cheering event fit. A moderating role of a sponsor’s sponsoring motive has not been supported. Overall, the finding sunder score the significance of image congruence as well as the utility of cheering event fit as a particular type of ‘created fit’ that can be used to reduce the perception of low fit and its associated risks.     

Sponsorship portfolio as a brand-image creation strategy

The meanings held by events are sometimes transferable to a brand through sponsorship. The perceived sponsor-property fit affects brand evaluations. This research hypothesizes that in the case of a sponsorship portfolio, the source of image transfer can be composite, and brand image association may depend on the perceived fit between sponsorships. Building on theories of social cognition and categorization, this research proposes two dimensions of fit: sponsorship category relatedness and event personality fit. Two experiments show that categorical relatedness between sponsorships not only leads to the creation of a unified brand personality for the sponsor, but also enhances brand meaning consistency and clarity. Central category-related traits cue a category membership framework that integrates sponsorships in the portfolio. Under conditions of category ambiguity, the impact of event personality fit emerges. Interestingly, the findings suggest that sponsored properties having a “spiky” brand personality (having both high and low performance on dimensions) may communicate most clearly in a portfolio.     

Corporate Objectives in Sports Sponsorship

This article considers corporate objectives in sports sponsorship. The important question is to determine why companies sponsor sport when there are other promotion techniques available to them. Reasons for sponsoring sport in the first place are discussed, as well as broad corporate objectives in becoming involved in sponsorships. This study involved a sample of 45 sponsors who received media exposure in South Africa between November 1984 and March 1985. Results show that the most important reasons for sponsoring sport include potential TV coverage, promoting the corporate image and the potential of spectators as customers. Anonymous sponsorship, even philanthropic, is rare.     

Whiteness and Western Values in Global Advertisements: An Exploratory Study

This paper explores the emergence of sponsorship-linked events as a strategy to leverage relational outcomes through sponsorship investment. The growing use of sponsorship-linked events reinforces the need to understand the potential of such leverage strategies, thus the findings contribute to the body of literature on effective sponsorship practices. Findings from semi-structured interviews with Sponsorship and Marketing Managers suggest a shifting orientation among sponsors towards the pursuit of relational objectives. The privileged access to consumers afforded through sponsorship allows sponsors to manufacture opportunities to create intimacy with customers through sponsorship-linked events in relaxed, comfortable environments; thus sponsorship-linked events are positioned as a rich environment to add value to consumer–brand interactions and achieve relational objectives. Hosting specifically designed events affords sponsors an increased modicum of control over consumer–brand experiences in sponsorship environments characterised by a lack of control over sponsored property actions. However, this control may be eroded by social media technologies, which facilitate consumer–consumer communication around sponsorship-linked events. Social media, however, is proposed as a useful tool to elicit consumer feedback, addressing the misalignment between current sponsorship evaluation practices and emergent relational objectives revealed in the empirical findings. Therefore, successfully activating the sponsorship-linked marketing space demands an integrated and strategic approach.     

Tiger Woods,Nike, and I are (not) best friends: how brand's sports sponsorship in social-media impacts brand consumer's congruity and relationship quality

This study examines the effects of brand's sports sponsorship in social media on brand consumer's congruity and brand relationship quality. The study included a survey of targeting consumers whose ages range between early twenties and late forties; data from 322 respondents were collected. The results are as follows. First, brand's sports sponsorship in social-media activities relating to sports brands has significant effects on brand consumer's congruity. Second, this congruity significantly influences brand relationship quality. Third, male consumers, who have previously purchased products and services associated with a sports brand, perceive the sponsor's brand image more positively when they are exposed to the sponsor's brand's sports sponsorship in social-media activities, compared to those consumers having no previous purchases of the sponsored brand. Lastly, consumers in their forties with prior experience consuming the sponsor's brand products are most affected by the level of self-congruity with the sports brand compared to younger or older consumers.     

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.