Sponsorship Transparency as a Mediator of Negative Effects of Covert Ad Recognition

Abstract: The proliferation of covert online advertising formats such as advergames has raised concerns about consumers’ ability to recognize such content as advertising, and about how recognition affects evaluative outcomes. The present research utilized an online experiment (N= 179) to examine differences between format (advergame vs. online video) on recognition, and whether sponsorship transparency mediates – and mitigates – the effects of advertising recognition on attitude toward the ad, attitude toward the brand, and purchase intent. The results show that format, recognition, and sponsorship transparency all shape consumers’ responses to online ads.

Nathaniel J. Evans Bartosz Wojdynski

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