To disguise or disclose? The effects of sponsorship disclosure on the recognition and evaluation of sponsored content on Instagram

Abstract

This study investigates the implications of disclosures in sponsored posts on Instagram. The background for this study is the development of Instagram as an advertising platform with an enormous reach and influence. In sponsored posts on Instagram, the presence of a disclosure is often the only piece of information that delineates the communication presented as advertisement. Therefore, the effectiveness of a disclosure plays an important role in regards to how the consumer understand and recognize the content as commercial. The purpose of this study is to (1) discover if and how disclosures affect advertising recognition and (2) how level of reported advertising recognition affect source credibility, sponsor sincerity, brand attitude, purchase intention and brand recall. To answer the following questions, an extensive literature review was conducted on relevant academic topics within native advertising and the role of disclosure on advertising recognition and evaluations of sponsored posts on Instagram. The study finds that transparency is so of importance and highlighted in today's society, that all disclosures including non, provides a strong advertising recognition. The result is a reflection of its importance to research the area. Implications and future research of sponsorship and influencer marketing is presented. The authors hope the reader finds the paper enjoyable and entertaining to read.