Sponsored!: Disclosures of influencer marketing to enhance transparency and advertising literacy

This book chapter provides an overview of the literature on the effects of disclosures for influencer marketing on advertising literacy and persuasion. We discuss findings from 46 experimental studies showing that, in general, disclosures for influencer marketing can enhance people's advertising literacy and thereby contribute to increasing its transparency. The literature shows that effects of disclosures on persuasion are mixed, with studies finding negative effects, no effects, and positive effects. However, for disclosures to be effective, they should adhere to conditions that enhance the audience's opportunity (e.g., disclosure prominence) and ability (disclosure wording) to process the disclosure. A few studies also focused on individual characteristics, showing that disclosure effects, for example, depend on the level of identification with the influencer or perceived similarity. The limitations of the present body of literature are discussed, as well as suggestions for future research in this area.