Informing Consumers about “Hidden” Advertising: A Literature Review of the Effects of Disclosing Sponsored Content

Abstract

PurposeThis chapters provides an overview of what is currently known in the scientific literature about the effects of disclosures of sponsored content on consumers' responses. MethodologyWe provide a qualitative literature review of 21 empirical studies. FindingsAwareness of disclosures is rather low, but when consumers are aware of a disclosure, it successfully activates persuasion knowledge and can increase brand memory. The literature shows inconclusive findings with respect to the effects of disclosures on attention paid to sponsored content, critical processing, brand attitudes, and purchase intentions. In addition, the literature shows that modality of the disclosure has no significant effects, but the content of the disclosure, its timing, its duration, receivers' moods, and their perceptions of the sponsored content or the endorser are important moderators.

Applying eye tracking and electroencephalography to evaluate the effects of placement disclosures on brand responses

“…Although the findings of the effect of placement disclosures on viewers' brand attitude are not consistent, in this study, we assumed the placement disclosures have a negative effect on viewers' brand attitude based on the persuasion knowledge model. As the statement in the study of Boerman and van Reijmersdal, (), the possible reason causing the mixed findings is the differences in the types of disclosures that were used in different studies. In the study of Campbell et al (), an unspecific disclosure is used, and it does not seem powerful enough to motivate viewers to constantly pay attention to find out the persuasive intent.…”

“…Moreover, the findings of these studies on disclosure effects are contradictory. Some studies suggest that placement disclosures are helpful to increase viewers' brand memory and decrease brand attitude (Boerman, van Reijmersdal, & Neijens, ; Matthes & Naderer, ), whereas others support the notion that the placement disclosures have no or even opposite impacts on viewers' brand memory and brand attitude (Boerman & van Reijmersdal, ; Campbell, Mohr, & Verlegh, ). Therefore, it is very important to provide more convincing evidence to illustrate the effectiveness of product placement disclosures.…”

“Everything under control?”: Privacy control salience influences both critical processing and perceived persuasiveness of targeted advertising among adolescents

“…Previous studies have almost exclusively focused on advertising cues that solely convey the commercial nature of a message (e.g., "this is advertising") (Boerman & van Reijmersdal, 2016;Quinn & Wood, 2004). In other words, they aimed at making the persuasive intent salient.…”

“…Without such a cue, they might be a consumer group at risk of unwanted and undesired persuasion effects. The merit of an advertising cue lies in the fact that it can succeed in notifying adolescents that they are being subjected to a persuasive attempt (Boerman & van Reijmersdal, 2016;Quinn & Wood, 2004). As a result, adolescents might be more aware of these persuasive attempts, which results in the adoption of a more critical processing style to evaluate an ad (Boerman, van Reijmersdal, & Neijens, 2014;Wei et al, 2008).…”

“…Although research shows that a transparent cue usually triggers consumers' persuasion resistance, which generally leads to negative evaluations of advertisements (for a detailed overview, see Boerman & van Reijmersdal, 2016), there are also some studies pointing toward the opposite direction (e.g., Eagly, Wood, & Chaiken, 1978;Wei et al, 2008). As asserted by Wei et al (2008), explicit disclosure of covert marketing by a brand can also result in more favorable evaluations as consumers also appreciate the fact that brands disclose the fact that their message is intended to persuade (i.e., a brand being transparent).…”