Sponsorship Disclosure in Native Advertising: A Theoretical Framework
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Published
Mar 5, 2021
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Abstract
Native advertising is one of the fastest growing areas of online promotion. After reviewing extant literature via EBSCOhost database, this study draws on Persuasion Knowledge Model and develops a theoretical framework which facilitates a clearer understanding of the relationship between sponsorship disclosure in native advertising and consumer outcome. The framework suggests that sponsorship disclosure has a negative effect on electronic word of mouth (eWOM), and further proposes the interplay between the main effect with brand prominence and the type of device. This is highly relevant to marketer as regulators have been pressuring for the disclosure of native advertising. As this is likely to have detrimental effect to the eWOM, marketer may employ the boundary conditions proposed by this framework to attenuate that negative effect.
Keywords: Native Advertising, Sponsorship Disclosure, Persuasion Knowledge, eWOM
References
Berger, J. (2014). Word of Mouth and Interpersonal Communication: A Review and Directions for Future Research. Journal of Consumer Psychology, 24(4), 586-607. https://doi.org/10.1016/j.jcps.2014.05.002
Boerman, S. C., van Reijmersdal, E. A., & Neijens, P. C. (2012). Sponsorship Disclosure: Effects of Duration on Persuasion Knowledge and Brand Responses. Journal of Communication, 62(6), 1047-1064. https://doi.org/10.1111/j.1460-2466.2012.01677.x
Boerman, S. C., van Reijmersdal, E. A., & Neijens, P. C. (2014). Effects of Sponsorship Disclosure Timing on the Processing of Sponsored Content: A Study on the Effectiveness of European Disclosure Regulations. Psychology & Marketing, 31(3), 214-224. https://doi.org/10.1002/mar.20688
Boerman, S. C., van Reijmersdal, E. A., & Neijens, P. C. (2015). Using Eye Tracking to Understand the Effects of Brand Placement Disclosure Types in Television Programs. Journal of Advertising, 44(3), 196-207. https://doi.org/10.1080/00913367.2014.967423
Boerman, S. C., Willemsen, L. M., & Van Der Aa, E. P. (2017). “This Post Is Sponsored”: Effects of Sponsorship Disclosure on Persuasion Knowledge and Electronic Word of Mouth in the Context of Facebook. Journal of Interactive Marketing, 38, 82-92. https://doi.org/10.1016/j.intmar.2016.12.002
Boland, M. (2016). Native Ads will Drive 74% of all Ad Revenue by 2021. Retrieved from https://www.businessinsider.com/the-native-ad-report-forecasts-2016-5
Brehm, S. S., & Brehm, J. W. (1981). Psychological Reactance: A Theory of Freedom and Control. San Diego, CA: Academic Press.
Chu, S.-C., & Kim, Y. (2011). Determinants of Consumer Engagement in Electronic Word-of-Mouth (eWOM) in Social Networking Sites. International Journal of Advertising, 30(1), 47-75. https://doi.org/10.2501/IJA-30-1-047-075
Darke, P. R., & Ritchie, R. J. B. (2007). The Defensive Consumer: Advertising Deception, Defensive Processing, and Distrust. Journal of Marketing Research, 44(1), 114-127. https://doi.org/10.1509/jmkr.44.1.114
de Matos, C. A., & Rossi, C. A. V. (2008). Word-of-Mouth Communications in Marketing: A Meta-Analytic Review of the Antecedents and Moderators. Journal of the Academy of Marketing Science, 36, 578-596. https://doi.org/10.1007/s11747-008-0121-1
Friestad, M., & Wright, P. (1994). The Persuasion Knowledge Model: How People Cope with Persuasion Attempts. Journal of Consumer Research, 21(1), 1-31. https://doi.org/10.1086/209380
Goldfarb, A., & Tucker, C. E. (2011). Privacy Regulation and Online Advertising. Management Science, 57(1), 57-71. https://doi.org/10.1287/mnsc.1100.1246
Gupta, P. B., & Lord, K. R. (1998). Product Placement in Movies: The Effect of Prominence and Mode on Audience Recall. Journal of Current Issues & Research in Advertising, 20(1), 47-59. https://doi.org/10.1080/10641734.1998.10505076
Harms, B., Bijmolt, T. H. A., & Hoekstra, J. C. (2017). Digital Native Advertising: Practitioner Perspectives and a Research Agenda. Journal of Interactive Advertising, 17(2), 80-91. https://doi.org/10.1080/15252019.2017.1357513
Held, J., & Germelmann, C. C. (2014). Deceived or Not Deceived: How Food Consumers Perceive Deception. In J. Cotte, & S. Wood (Eds.), NA-Advances in Consumer Research Volume 42 (pp. 313-317). Duluth, MN: Association for Consumer Research. Retrieved from https://www.acrwebsite.org/volumes/1017626/volumes/v42/NA-42
Hennig-Thurau, T., Gwinner, K. P., Walsh, G., & Gremler, D. D. (2004). Electronic Word-of-Mouth via Consumer-Opinion Platforms: What Motivates Consumers to Articulate themselves on the Internet? Journal of Interactive Marketing, 18(1), 38-52. https://doi.org/10.1002/dir.10073
Hibbert, S., Smith, A., Davies, A., & Ireland, F. (2007). Guilt Appeals: Persuasion Knowledge and Charitable Giving. Psychology & Marketing, 24(8), 723-742. https://doi.org/10.1002/mar.20181
Homer, P. M. (2009). Product Placements. Journal of Advertising, 38(3), 21-32. https://doi.org/10.2753/JOA0091-3367380302
Hsieh, J.-K., Hsieh, Y.-C., & Tang, Y.-C. (2012). Exploring the Disseminating Behaviors of eWOM Marketing: Persuasion in Online Video. Electronic Commerce Research, 12(2), 201-224. https://doi.org/10.1007/s10660-012-9091-y
Kim, J. (2017). Native Advertising: Current Status and Research Agenda. Journal of Interactive Advertising, 17(2), 79-79. https://doi.org/10.1080/15252019.2017.1399704
Kozary, B., & Baxter, S. (2010). The Influence of Product Placement Prominence on Consumer Attitudes and Intentions: A Theoretical Framework. In Proceedings of the Australian and New Zealand Marketing Academy Conference 2010: Doing More with Less (ANZMAC 2010), Canterbury, New Zealand, 29 November-1 December, 2010. Retrieved from https://ogma.newcastle.edu.au/vital/access/manager/Repository/uon:11643
Krouwer, S., Poels, K., & Paulussen, S. (2017). To Disguise or to Disclose? The Influence of Disclosure Recognition and Brand Presence on Readers’ Responses toward Native Advertisements in Online News Media. Journal of Interactive Advertising, 17(2), 124-137. https://doi.org/10.1080/15252019.2017.1381579
Li, X., & Hitt, L. M. (2008). Self-Selection and Information Role of Online Product Reviews. Information Systems Research, 19(4), 456-474. http://dx.doi.org/10.1287/isre.1070.0154
Liu, Y. (2006). Word of Mouth for Movies: Its Dynamics and Impact on Box Office Revenue. Journal of Marketing, 70(3), 74-89. https://doi.org/10.1509/jmkg.70.3.074
Peters, K., Chen, Y., Kaplan, A. M., Ognibeni, B., & Pauwels, K. (2013). Social Media Metrics-A Framework and Guidelines for Managing Social Media. Journal of Interactive Marketing, 27(4), 281-298. https://doi.org/10.1016/j.intmar.2013.09.007
Petty, R. E., & Cacioppo, J. T. (1977). Forewarning, Cognitive Responding, and Resistance to Persuasion. Journal of Personality and Social Psychology, 35(9), 645–655. https://doi.org/10.1037/0022-3514.35.9.645
Qiigo. (2019, June 3). Facebook Ads vs. Boosted Posts: What’s The Difference? Retrieved from https://qiigo.com/social-media/facebook-ads-vs-boosted-posts-whats-the-difference/
Rozendaal, E., Lapierre, M. A., van Reijmersdal, E. A., & Buijzen, M. (2011). Reconsidering Advertising Literacy as a Defense against Advertising Effects. Media Psychology, 14(4), 333-354. https://doi.org/10.1080/15213269.2011.620540
Sahni, N. S., & Nair, H. S. (2016). Native Advertising, Sponsorship Disclosure and Consumer Deception: Evidence from Mobile Search-Ad Experiments. Stanford, CA: Graduate School of Business, Stanford University. Retrieved from https://www.ftc.gov/system/files/documents/public_events/966823/sahninair_native_advertisingsponsorshipdisclosureandconsumerdeception.pdf
Sonnier, G. P., McAlister, L., & Rutz, O. J. (2011). A Dynamic Model of the Effect of Online Communications on Firm Sales. Marketing Science, 30(4), 702-716. DOI: 10.1287/mksc.1110.0642
Tirunillai, S., & Tellis, G. J. (2012). Does Chatter Really Matter? Dynamics of User-Generated Content and Stock Performance. Marketing Science, 31(2), 198-215. Retrieved from https://www.jstor.org/stable/41488019
van Noort, G., Antheunis, M. L., & van Reijmersdal, E. A. (2012). Social Connections and the Persuasiveness of Viral Campaigns in Social Network Sites: Persuasive Intent as the Underlying Mechanism. Journal of Marketing Communications, 18(1), 39-53. https://doi.org/10.1080/13527266.2011.620764
Wang, P., Xiong, G., & Yang, J. (2019). Serial Position Effects on Native Advertising Effectiveness: Differential Results Across Publisher and Advertiser Metrics. Journal of Marketing, 83(2), 82-97. https://doi.org/10.1177/0022242918817549
Wei, M.-L., Fischer, E., & Main, K. J. (2008). An Examination of the Effects of Activating Persuasion Knowledge on Consumer Response to Brands Engaging in Covert Marketing. Journal of Public Policy & Marketing, 27(1), 34-44. https://doi.org/10.1509/jppm.27.1.34
Wojdynski, B. W., & Evans, N. J. (2016). Going Native: Effects of Disclosure Position and Language on the Recognition and Evaluation of Online Native Advertising. Journal of Advertising, 45(2), 157-168. https://doi.org/10.1080/00913367.2015.1115380
Wood, W., & Quinn, J. M. (2003). Forewarned or Forearmed? Two Meta-Analytic Syntheses of Forewarnings of Influence Appeals. Psychological Bulletin, 129(1), 119-138. DOI: 10.1037/0033-2909.129.1.119
Yang, J., Kim, W., Amblee, N., & Jeong, J. (2012). The Heterogeneous Effect of WOM on Product Sales: Why the Effect of WOM Valence is Mixed? European Journal of Marketing, 46(11/12), 1523-1538. https://doi.org/10.1108/03090561211259961
You, Y., Vadakkepatt, G. G., & Joshi, A. M. (2015). A Meta-Analysis of Electronic Word-of-Mouth Elasticity. Journal of Marketing, 79(2), 19-39. https://doi.org/10.1509/jm.14.0169
Boerman, S. C., van Reijmersdal, E. A., & Neijens, P. C. (2012). Sponsorship Disclosure: Effects of Duration on Persuasion Knowledge and Brand Responses. Journal of Communication, 62(6), 1047-1064. https://doi.org/10.1111/j.1460-2466.2012.01677.x
Boerman, S. C., van Reijmersdal, E. A., & Neijens, P. C. (2014). Effects of Sponsorship Disclosure Timing on the Processing of Sponsored Content: A Study on the Effectiveness of European Disclosure Regulations. Psychology & Marketing, 31(3), 214-224. https://doi.org/10.1002/mar.20688
Boerman, S. C., van Reijmersdal, E. A., & Neijens, P. C. (2015). Using Eye Tracking to Understand the Effects of Brand Placement Disclosure Types in Television Programs. Journal of Advertising, 44(3), 196-207. https://doi.org/10.1080/00913367.2014.967423
Boerman, S. C., Willemsen, L. M., & Van Der Aa, E. P. (2017). “This Post Is Sponsored”: Effects of Sponsorship Disclosure on Persuasion Knowledge and Electronic Word of Mouth in the Context of Facebook. Journal of Interactive Marketing, 38, 82-92. https://doi.org/10.1016/j.intmar.2016.12.002
Boland, M. (2016). Native Ads will Drive 74% of all Ad Revenue by 2021. Retrieved from https://www.businessinsider.com/the-native-ad-report-forecasts-2016-5
Brehm, S. S., & Brehm, J. W. (1981). Psychological Reactance: A Theory of Freedom and Control. San Diego, CA: Academic Press.
Chu, S.-C., & Kim, Y. (2011). Determinants of Consumer Engagement in Electronic Word-of-Mouth (eWOM) in Social Networking Sites. International Journal of Advertising, 30(1), 47-75. https://doi.org/10.2501/IJA-30-1-047-075
Darke, P. R., & Ritchie, R. J. B. (2007). The Defensive Consumer: Advertising Deception, Defensive Processing, and Distrust. Journal of Marketing Research, 44(1), 114-127. https://doi.org/10.1509/jmkr.44.1.114
de Matos, C. A., & Rossi, C. A. V. (2008). Word-of-Mouth Communications in Marketing: A Meta-Analytic Review of the Antecedents and Moderators. Journal of the Academy of Marketing Science, 36, 578-596. https://doi.org/10.1007/s11747-008-0121-1
Friestad, M., & Wright, P. (1994). The Persuasion Knowledge Model: How People Cope with Persuasion Attempts. Journal of Consumer Research, 21(1), 1-31. https://doi.org/10.1086/209380
Goldfarb, A., & Tucker, C. E. (2011). Privacy Regulation and Online Advertising. Management Science, 57(1), 57-71. https://doi.org/10.1287/mnsc.1100.1246
Gupta, P. B., & Lord, K. R. (1998). Product Placement in Movies: The Effect of Prominence and Mode on Audience Recall. Journal of Current Issues & Research in Advertising, 20(1), 47-59. https://doi.org/10.1080/10641734.1998.10505076
Harms, B., Bijmolt, T. H. A., & Hoekstra, J. C. (2017). Digital Native Advertising: Practitioner Perspectives and a Research Agenda. Journal of Interactive Advertising, 17(2), 80-91. https://doi.org/10.1080/15252019.2017.1357513
Held, J., & Germelmann, C. C. (2014). Deceived or Not Deceived: How Food Consumers Perceive Deception. In J. Cotte, & S. Wood (Eds.), NA-Advances in Consumer Research Volume 42 (pp. 313-317). Duluth, MN: Association for Consumer Research. Retrieved from https://www.acrwebsite.org/volumes/1017626/volumes/v42/NA-42
Hennig-Thurau, T., Gwinner, K. P., Walsh, G., & Gremler, D. D. (2004). Electronic Word-of-Mouth via Consumer-Opinion Platforms: What Motivates Consumers to Articulate themselves on the Internet? Journal of Interactive Marketing, 18(1), 38-52. https://doi.org/10.1002/dir.10073
Hibbert, S., Smith, A., Davies, A., & Ireland, F. (2007). Guilt Appeals: Persuasion Knowledge and Charitable Giving. Psychology & Marketing, 24(8), 723-742. https://doi.org/10.1002/mar.20181
Homer, P. M. (2009). Product Placements. Journal of Advertising, 38(3), 21-32. https://doi.org/10.2753/JOA0091-3367380302
Hsieh, J.-K., Hsieh, Y.-C., & Tang, Y.-C. (2012). Exploring the Disseminating Behaviors of eWOM Marketing: Persuasion in Online Video. Electronic Commerce Research, 12(2), 201-224. https://doi.org/10.1007/s10660-012-9091-y
Kim, J. (2017). Native Advertising: Current Status and Research Agenda. Journal of Interactive Advertising, 17(2), 79-79. https://doi.org/10.1080/15252019.2017.1399704
Kozary, B., & Baxter, S. (2010). The Influence of Product Placement Prominence on Consumer Attitudes and Intentions: A Theoretical Framework. In Proceedings of the Australian and New Zealand Marketing Academy Conference 2010: Doing More with Less (ANZMAC 2010), Canterbury, New Zealand, 29 November-1 December, 2010. Retrieved from https://ogma.newcastle.edu.au/vital/access/manager/Repository/uon:11643
Krouwer, S., Poels, K., & Paulussen, S. (2017). To Disguise or to Disclose? The Influence of Disclosure Recognition and Brand Presence on Readers’ Responses toward Native Advertisements in Online News Media. Journal of Interactive Advertising, 17(2), 124-137. https://doi.org/10.1080/15252019.2017.1381579
Li, X., & Hitt, L. M. (2008). Self-Selection and Information Role of Online Product Reviews. Information Systems Research, 19(4), 456-474. http://dx.doi.org/10.1287/isre.1070.0154
Liu, Y. (2006). Word of Mouth for Movies: Its Dynamics and Impact on Box Office Revenue. Journal of Marketing, 70(3), 74-89. https://doi.org/10.1509/jmkg.70.3.074
Peters, K., Chen, Y., Kaplan, A. M., Ognibeni, B., & Pauwels, K. (2013). Social Media Metrics-A Framework and Guidelines for Managing Social Media. Journal of Interactive Marketing, 27(4), 281-298. https://doi.org/10.1016/j.intmar.2013.09.007
Petty, R. E., & Cacioppo, J. T. (1977). Forewarning, Cognitive Responding, and Resistance to Persuasion. Journal of Personality and Social Psychology, 35(9), 645–655. https://doi.org/10.1037/0022-3514.35.9.645
Qiigo. (2019, June 3). Facebook Ads vs. Boosted Posts: What’s The Difference? Retrieved from https://qiigo.com/social-media/facebook-ads-vs-boosted-posts-whats-the-difference/
Rozendaal, E., Lapierre, M. A., van Reijmersdal, E. A., & Buijzen, M. (2011). Reconsidering Advertising Literacy as a Defense against Advertising Effects. Media Psychology, 14(4), 333-354. https://doi.org/10.1080/15213269.2011.620540
Sahni, N. S., & Nair, H. S. (2016). Native Advertising, Sponsorship Disclosure and Consumer Deception: Evidence from Mobile Search-Ad Experiments. Stanford, CA: Graduate School of Business, Stanford University. Retrieved from https://www.ftc.gov/system/files/documents/public_events/966823/sahninair_native_advertisingsponsorshipdisclosureandconsumerdeception.pdf
Sonnier, G. P., McAlister, L., & Rutz, O. J. (2011). A Dynamic Model of the Effect of Online Communications on Firm Sales. Marketing Science, 30(4), 702-716. DOI: 10.1287/mksc.1110.0642
Tirunillai, S., & Tellis, G. J. (2012). Does Chatter Really Matter? Dynamics of User-Generated Content and Stock Performance. Marketing Science, 31(2), 198-215. Retrieved from https://www.jstor.org/stable/41488019
van Noort, G., Antheunis, M. L., & van Reijmersdal, E. A. (2012). Social Connections and the Persuasiveness of Viral Campaigns in Social Network Sites: Persuasive Intent as the Underlying Mechanism. Journal of Marketing Communications, 18(1), 39-53. https://doi.org/10.1080/13527266.2011.620764
Wang, P., Xiong, G., & Yang, J. (2019). Serial Position Effects on Native Advertising Effectiveness: Differential Results Across Publisher and Advertiser Metrics. Journal of Marketing, 83(2), 82-97. https://doi.org/10.1177/0022242918817549
Wei, M.-L., Fischer, E., & Main, K. J. (2008). An Examination of the Effects of Activating Persuasion Knowledge on Consumer Response to Brands Engaging in Covert Marketing. Journal of Public Policy & Marketing, 27(1), 34-44. https://doi.org/10.1509/jppm.27.1.34
Wojdynski, B. W., & Evans, N. J. (2016). Going Native: Effects of Disclosure Position and Language on the Recognition and Evaluation of Online Native Advertising. Journal of Advertising, 45(2), 157-168. https://doi.org/10.1080/00913367.2015.1115380
Wood, W., & Quinn, J. M. (2003). Forewarned or Forearmed? Two Meta-Analytic Syntheses of Forewarnings of Influence Appeals. Psychological Bulletin, 129(1), 119-138. DOI: 10.1037/0033-2909.129.1.119
Yang, J., Kim, W., Amblee, N., & Jeong, J. (2012). The Heterogeneous Effect of WOM on Product Sales: Why the Effect of WOM Valence is Mixed? European Journal of Marketing, 46(11/12), 1523-1538. https://doi.org/10.1108/03090561211259961
You, Y., Vadakkepatt, G. G., & Joshi, A. M. (2015). A Meta-Analysis of Electronic Word-of-Mouth Elasticity. Journal of Marketing, 79(2), 19-39. https://doi.org/10.1509/jm.14.0169
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Research Articles
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How to Cite
KUSAWAT, Poompak.
Sponsorship Disclosure in Native Advertising: A Theoretical Framework.
Journal of Community Development Research (Humanities and Social Sciences), [S.l.], v. 14, n. 2, p. 29-38, mar. 2021.
ISSN 2985-0231.
Available at: <https://www.journal.nu.ac.th/JCDR/article/view/Vol-14-No-2-2021-29-38>. Date accessed: 19 apr. 2024.
doi: https://doi.org/10.14456/jcdr-hs.2021.13.