Consumer Behavior

Sponsorship Disclosure and Third-Party Revelation of Instagram Influencer Advertising: Impact on The Brand and The Influencer

---

Abstract

Despite the regulations requiring disclosure of a paid partnership between a brand and an influencer, some influencers fail to follow them. This study examined consumer perception consequences of the interplay between Instagram influencers’ brand sponsorship disclosure and a third-party revelation of the brand sponsorship. Data were collected via an online experiment with a convenience sample of 319 college students. The results indicate that Instagram influencers’ brand sponsorship disclosure negatively impacts consumers’ perceived credibility of the influencer in two dimensions: trustworthiness and expertise. However, the influencer’s credibility in attractiveness and the brand’s perceived sincerity, both of which were significant predictors of brand attitude, were not impacted by the influencer’s disclosure of the brand sponsorship information. Further, the third-party revelation of the brand sponsorship information does not have an influence on consumers’ perceptions about the influencer or the brand. Theoretical and managerial implications are discussed.

Keywords: Brand Revelation, Disclosure, Instagram, Influencer

How to Cite:

Einollahi, S. & Kwon, W., (2020) “Sponsorship Disclosure and Third-Party Revelation of Instagram Influencer Advertising: Impact on The Brand and The Influencer”, International Textile and Apparel Association Annual Conference Proceedings 77(1). doi: https://doi.org/10.31274/itaa.11987