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This experiment with a representative sample of US adults ( N = 800) examines the effects of disclosure design characteristics in sponsored news on readers’ ability to recognize such content as paid advertising, and examines whether such recognition differently affects perceptions of legacy and digital-first publishers. Although fewer than 1 in 10 participants were able to recognize native advertising, our study shows that effectively designed disclosure labels facilitate recognition. However, participants who did recognize native advertising had lessened opinions of the publisher and the institution of advertising, overall.

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