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This site details a comprehensive discussion of scholarly literature that explores; the use of social media influencers as marketing tools, the FTC regulations that have been implemented on sponsored content, consumer responses to sponsored content and disclosure statements, and perceptions towards a brand and of sponsorship disclosures.
To read the full literature review, click here.
What is a sponsorship disclosure, and how does it correlate with social media influencer marketing?
What is a sponsorship disclosure, and how does it correlate with social media influencer marketing?
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The influencer market has become increasingly more competitive over the years with research showing the significant success that influencer marketing has brought to companies due to an influencer’s following and users’ trust in this person (Audrezet, De Kerviler, & Moulard, 2018). Since then, influencer marketing has become more advanced with consumers developing more of an awareness of the commercial nature of sponsored content. Because of this, disclosure statements have become an essential part of marketing through eWOM.
Sponsored content through eWOM is meant to drive awareness, increase consumer engagement, and generate leads (Pfeuffer & Huh, 2021). Scholars such as Boerman et al., (2017) have researched the impact marketing with sponsored content, especially through social media influencers, can have a on audiences. Within the research, Boerman et al., (2017) suggest that consumers may feel as if they are being misled or persuaded to purchase a product due to the commercial nature of content, leading to an implementing of rules and regulations from the FTC.
Disclosure statements help to avoid putting consumers in a negative mindset as well as to create transparency, maintain credibility, and if done successfully, activate persuasion knowledge leading to an increase in brand memory (Pfeuffer & Huh, 2021). Based on past research, this study further analyzes the use of sponsored content and social media influencers as marketing tools.
The use of social media influencers as marketing tools leads to concerns about authenticity and creates a stigma around sponsored content.
The use of social media influencers as marketing tools leads to concerns about authenticity and creates a stigma around sponsored content.
The growing use of social media plays an important role in the dynamics of marketing and consumer behavior. Influencer marketing is a new strategy that allows organizations to strengthen their communication skills and build their brand. Studies show that paid sponsorships that involve social media influencers (SMI) opens a gateway of concerns surrounding authenticity and transparency. For instance, Dhanesh and Duthler (2019) suggest that because of the commercial nature of paid sponsorships, consumers are left wondering whether or not the message behind the sponsored content is genuine, or if the influencer is only saying those things because they were paid to do so. This research conclude that utilizing social media influencers as marketing tools can put the influencer's authenticity into question, resulting in negative effects on both a social media influencer and brand’s reputation and credibility (Pöyrya, et al., 2019).
To maintain transparency and ethical practice, regulations for sponsored content have been set in place.
To maintain transparency and ethical practice, regulations for sponsored content have been set in place.
The guidelines that were placed on sponsored content help to maintain transparency and ethical practice. Without these rules and regulations, the sponsored content is viewed as unethical due to consumers being unable to recognize the persuasion attempts behind the sponsorship, according to Boerman and van Reijmersdal (2016). By implementing these guidelines, the FTC intended to inform consumers about the commercial nature of the content, however, according to researchers, Van Reijmersdal, et al., (2016) marketers’ practices of these regulations are inconsistent. To further analyze the regulation guidelines on sponsored content, media scholars have studied the importance of the regulations (Pfeuffer and Huh, 2021) and the act of following these guidelines (Boerman & van Reijmersdal, 2016).
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The importance of sponsorship disclosures is apparent when studying consumer responses to sponsored content.
The importance of sponsorship disclosures is apparent when studying consumer responses to sponsored content.
Studies suggest that consumers respond to sponsorship disclosures in a variety of ways (Carr & Hayes 2014). Through an online experimental study, Carr and Hayes (2014) were able to identify the impact of disclosure statements on consumer responses. Their findings from this study suggest that sponsorship disclosures significantly influence the credibility of a brand and influencer leading to a further impact on consumers’ attitudes and purchase intentions. Lou, Ma, and Feng’s (2021) posed the question of whether or not sponsorship disclosures were enough to provide consumers with the critical information they need to process and react to sponsored content. To further analyze this idea, Lou, et al., (2021) conducted a study where they analyzed the activation of persuasion knowledge and the impact this has on consumer responses.
The way in which a consumer perceives a brand or sponsored disclosure can solely depend on the presence of a disclosure statement or lack thereof.
The way in which a consumer perceives a brand or sponsored disclosure can solely depend on the presence of a disclosure statement or lack thereof.
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Boerman and van Reijmersdal (2016) indicate that disclosure statements allow influencers and brands to remain authentic while simultaneously encouraging consumers to participate in eWOM. According to Pfeuffer and Huh (2021), eWOM plays a significant role in a consumer’s decision-making process as well as their attitude towards a brand. When product information is coming from a source of interpersonal communication, consumers are more likely to trust what a company or individual has to say about a given product (Pfeuffer & Huh 2021). Research also suggests that consumers will rely on this product information to influence their purchase decisions. This influence contributes to concerns about consumers not being aware of the commercial intent of these product reviews, leading to unjust purchase behaviors (Pfeuffer & Huh 2021).
How does the growing influence of social media influencers and sponsored content vary across different social media platforms?
How does the growing influence of social media influencers and sponsored content vary across different social media platforms?
After analyzing past research on this topic, it is clear that social media influencers and sponsored content are becoming increasingly more powerful. It is important that consumers understand when they are interacting with content that contains a third party influence, which is where sponsorship disclosures come into play. There are many areas where this research can be extended, such as exploring different types of social media platforms that use sponsored content. The following research questions and hypothesis will be used to understand the relationship between Instagram and sponsored content and the impact this has on consumer responses.
RQ1: Are sponsored Instagram posts that include a disclosure statement more positively related to a consumers’ brand attitude than a post that does not?
RQ2: Are sponsored Instagram posts that include a disclosure statement more positively related to consumers' perceived authenticity of the influencer than posts that do not include a disclosure statement?
RQ3: Is sponsored content on Instagram less likely to activate consumers' conceptual persuasion knowledge if not accompanied by a disclosure statement?
RQ4: Are consumers more likely to activate their attitudinal persuasion knowledge after viewing a sponsored Instagram post from an influencer rather than conceptual persuasion knowledge?
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