Can blockchain-based authenticity disclosures increase consumer trust in online advertising?

Fake advertising is a type of commercial disinformation that has profound negative implications for the online advertising ecosystem. However, it is often ignored in societal discourse and scientific research. Whereas disinformation labeling literature suggests fact-checking labels to be an effective solution to minimize the effects of disinformation, these labels are not always trusted by users and may decrease belief in accurate information. In two studies conducted in different contexts (Instagram and Google search ads), this paper investigates whether using blockchain-based disclosures of advertising authenticity could help increase consumer perceptions of ad and brand credibility. It also examines whether such authenticity disclosures lead to more favorable attitudes. The results of both studies show that this is not the case: blockchain-based authenticity disclosures do not positively affect credibility or attitudes. However, further analyses of different disclosure communication strategies show that disclosures communicating the ad source without mentioning the use of blockchain are perceived as more understandable, translating to positive ad- and brand-related effects. These findings have significant implications for existing blockchain-based solutions that guarantee online information integrity and product authenticity, and for future implementation of the European Union’s Digital Product Passports.