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TO DISGUISE, OR DISCLOSE?
The influence of disclosure recognition and brand presence
on readers’ responses towards native advertisements
in online news media.
Simone Krouwer, Karolien Poels & Steve Paulussen
University of Antwerp
Simone.krouwer@uantwerpen.be
Twitter: @SimoneKrouwer
Suffers from “Banner Blindness”
AN AVERAGE ONLINE NEWS READER…
Doesn’t pay
anything for
online news
(BE: 88%)
Uses an
AD blocker
(BE: 23%)
 Non-disruptive advertising
 Look and feel of news article
 Federal Trade Commission:
“A disclosure may be necessary
to prevent deception”
NATIVE ADVERTISING
Simone Krouwer – University of Antwerp
STATE OF THE ART: DISCLOSURES Sponsored
by science
Can increase ad recognition (conceptual PK)
(e.g. Van Reijmersdal, 2016)
Can subsequently lead to negative attitudinal responses
 Attitudinal PK  Skeptical processing
(Boerman et al., 2012)
Can lower evaluations of the advertisement and advertiser
 Decrease in credibility (Wojdynski, 2015)
No studies yet on impact on news website
Simone Krouwer – University of Antwerp
Persuasion Knowledge:
Conceptual PK  Ad recognition
Attitudinal PK  Critial / skeptical processing
WE DON’T WANT TO BE MANIPULATED…
(e.g. Boerman, 2014)
HOWEVER…
Readers often don’t recognize disclosures! (less dan 25%)
 Highest disclosure recognition when they are middle-positioned
(Wojdynski, 2015)
Disclosure (and subsequently ad) recognition does not always lead to
negative evaluations of the ad and context…
 (E.g. Becker-Olsen, 2003; Carr and Hayes, 2014)
 Other factors may play a moderating role
Simone Krouwer – University of Antwerp
WHAT ABOUT THE CONTENT?
Case study: “Negative evaluation of native ad cannot be explained by disclosure”.
(Carlson, 2015)
Simone Krouwer – University of Antwerp
BRAND PRESENCE
High brand presence can increase suspicion
Information Utility & Inferences of Manipulative Intent
Increase in value for reader = 
Advertisement mainly benefits the advertiser = 
(e.g. Campbell, 1995; Sweetser, 2016)
High brand presence  less benefits  lower attitude
towards the ad. (e.g. Wentzel, Tomczak, & Herrmann,2010)
Negative advertising experiences may spill-over on the
context. (Yang and Oliver, 2004; Ha and Litman; 1997)
Simone Krouwer – University of Antwerp
EXPECTATIONS
Disclosure position and recognition
H: A middle-positioned disclosure will be more often recognized than a top-
positoned disclosure
RQ: Will a top-positioned disclosure combined with a middle-positioned
disclosure significantly increase disclosure recognition?
H: Both disclosure recognition and high brand presence will:
Increase conceptual PK
Increase attitudinal PK
Decrease attitude towards the ad and advertiser,
mediated by increased attitudinal PK
Negatively influence news website credibility,
mediated by increased attitudinal PK
H: Brand presence will moderate the effects of disclosure recognition:
 High brand presence will increase the negative effects.
Simone Krouwer – University of Antwerp
Disclosure position
Conceptual
PK
Attitudinal
PK
Aad
Ab
News website
credibility
High Low
Brand presence
Disclosure
recognition
Involvement
News website
experience
3 X 2 EXPERIMENT
Top Middle Top + Middle
Simone Krouwer – University of Antwerp
+
+
+
+
- - -
THREE DISCLOSURE CONDITIONS
2 BRAND PRESENCE CONDITIONS
46,9% Male
53,1% Female
290 ONLINE NEWS READERS
Average age:
42 years
Min. age = 18
Max. age = 66
73%
Visits more than
once a week the
news website
 Binary Logistic
Regression
 ANCOVA analysis
 Preacher & Hayes
mediation analysis
Simone Krouwer – University of Antwerp
DISCLOSURE RECOGNITION
 Middle - positioned disclosure
sig. more often recognized
(22.8% VS 11.2%)
X No added value of top- and
middle-positioned disclosure
disclosure
(26.7% VS 22.8%)
X Attitudinal
PK
X
Aa
d
 Conceptual PK
F(1, 285) = 8.81, p = .004)
Disclosure recognition
X Ab
X News website
Simone Krouwer – University of Antwerp
+
+
-
-
-
BRAND PRESENCE
X Conceptual PK
 Attitudinal PK
(F(1, 283) = 139.24, p < .001)
High Low
Brand presence
News website
(B = -.36, SE = .08; 95%
CI = -.543 to -.200).
 Ab
(B = -.23, SE = .08; 95%
CI = -.397 – -.079).
 Aad
(B = -.69, SE = .12; 95%
CI = -.960 to -.472).
Simone Krouwer – University of Antwerp
• All effects controlled for news website experience and involvement
• News website, Ab and Aad mediated by attitudinal PK
-
-
-
+
+
Simone Krouwer – University of Antwerp
DISCLOSURE RECOGNITION BRAND PRESENCE
CONCLUSION
Disclose! But disguise the brand…
1. No influence of disclosures on readers’ attitudinal PK & evaluations…
 VS other studies?  Different disclosures, different contexts…
2. Influence of brand presence on all evaluations, mediated by attitudinal PK
 Important to focus more on brand presence, and other content factors?
 Focus more on attitudinal parts of PK!
3. Especially important for news media’s credibility
Simone Krouwer – University of Antwerp
LIMITATIONS & FUTURE RESEARCH
Limitations
 Self-reported disclosure recognition
 Existing, well-known brand
 Only short-term effects for news media
Future research
 Other content characteristics, e.g. two-sided information (Eisend, 2007)
 Different types of brands (also fictive brands)
 Long-term effects for advertisers and news media
 More direct measurements of attitudes and behavior
Simone Krouwer – University of Antwerp
THANKS!
ANY QUESTIONS? 
Simone Krouwer, Karolien Poels & Steve Paulussen
University of Antwerp
Simone.krouwer@uantwerpen.be
@SimoneKrouwer
BACK-UP
Simone Krouwer – University of Antwerp
DISCLOSURE RECOGNITION BRAND PRESENCE
X There was no significant
influence on conceptual PK
 A disclosure positioned at the middle
of a page was more often recognized
 This disclosure recognition increased
Conceptual PK
X Disclosure recognition did not
increase attitudinal PK
 High brand presence did
increase attitudinal PK
X Disclosure recognition did not
decrease Aad, Ab & evaluation of the
news website
 Which subsequently sig. decreased
Aad, Ab & News website evaluation
Simone Krouwer – University of Antwerp
2. DISCLOSURE POSITION AND RECOGNITION
Top-positioned
disclosure
Middle-positioned
disclosire
Top-and-midle
positioned
disclosure
Yes 11,1% 22,8% 26,7%
No 88,9% 77,2% 73,3%
The text contained the label: “aangeboden door Samsung”.
Have you seen this label?
BRAND PRESENCE
High Low Significantie
Conceptual PK 4.49 4.23 p = .120.
Attitudinal PK 4.40* 3.28* p < .001.
Aad 5.08* 4.54* p < .001.
Ab 4.26* 4.41* p = .043.
News website 4.28* 4.70* p = .001.
* = significantly different
DISCLOSURE RECOGNITION
Yes No Significantie
Conceptual PK 4.75* 4.27* p = .004
Attitudinal PK 3.95 3.96 p = .960
Aad 4.63 4.82 p = .971
Ab 4.43 4.31 p = .362
News website 4.40 4.50 p = .196
* = significantly different
5 EXPLAINING THE NEGATIVE EFFECT OF HIGH BRAND PRESENCE
Degree to which readers felt manipulated by the text
1 = Not al all, 4 = neutral, 7 = Very strong
In low brand prominence
conditions
3.28 4.40
In high brand prominence
conditions

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brand presence and disclosure labels native advertising study

  • 1. TO DISGUISE, OR DISCLOSE? The influence of disclosure recognition and brand presence on readers’ responses towards native advertisements in online news media. Simone Krouwer, Karolien Poels & Steve Paulussen University of Antwerp Simone.krouwer@uantwerpen.be Twitter: @SimoneKrouwer
  • 2. Suffers from “Banner Blindness” AN AVERAGE ONLINE NEWS READER… Doesn’t pay anything for online news (BE: 88%) Uses an AD blocker (BE: 23%)
  • 3.  Non-disruptive advertising  Look and feel of news article  Federal Trade Commission: “A disclosure may be necessary to prevent deception” NATIVE ADVERTISING Simone Krouwer – University of Antwerp
  • 4. STATE OF THE ART: DISCLOSURES Sponsored by science Can increase ad recognition (conceptual PK) (e.g. Van Reijmersdal, 2016) Can subsequently lead to negative attitudinal responses  Attitudinal PK  Skeptical processing (Boerman et al., 2012) Can lower evaluations of the advertisement and advertiser  Decrease in credibility (Wojdynski, 2015) No studies yet on impact on news website Simone Krouwer – University of Antwerp
  • 5. Persuasion Knowledge: Conceptual PK  Ad recognition Attitudinal PK  Critial / skeptical processing WE DON’T WANT TO BE MANIPULATED… (e.g. Boerman, 2014)
  • 6. HOWEVER… Readers often don’t recognize disclosures! (less dan 25%)  Highest disclosure recognition when they are middle-positioned (Wojdynski, 2015) Disclosure (and subsequently ad) recognition does not always lead to negative evaluations of the ad and context…  (E.g. Becker-Olsen, 2003; Carr and Hayes, 2014)  Other factors may play a moderating role Simone Krouwer – University of Antwerp
  • 7. WHAT ABOUT THE CONTENT? Case study: “Negative evaluation of native ad cannot be explained by disclosure”. (Carlson, 2015) Simone Krouwer – University of Antwerp
  • 8. BRAND PRESENCE High brand presence can increase suspicion Information Utility & Inferences of Manipulative Intent Increase in value for reader =  Advertisement mainly benefits the advertiser =  (e.g. Campbell, 1995; Sweetser, 2016) High brand presence  less benefits  lower attitude towards the ad. (e.g. Wentzel, Tomczak, & Herrmann,2010) Negative advertising experiences may spill-over on the context. (Yang and Oliver, 2004; Ha and Litman; 1997) Simone Krouwer – University of Antwerp
  • 9. EXPECTATIONS Disclosure position and recognition H: A middle-positioned disclosure will be more often recognized than a top- positoned disclosure RQ: Will a top-positioned disclosure combined with a middle-positioned disclosure significantly increase disclosure recognition? H: Both disclosure recognition and high brand presence will: Increase conceptual PK Increase attitudinal PK Decrease attitude towards the ad and advertiser, mediated by increased attitudinal PK Negatively influence news website credibility, mediated by increased attitudinal PK H: Brand presence will moderate the effects of disclosure recognition:  High brand presence will increase the negative effects. Simone Krouwer – University of Antwerp
  • 10. Disclosure position Conceptual PK Attitudinal PK Aad Ab News website credibility High Low Brand presence Disclosure recognition Involvement News website experience 3 X 2 EXPERIMENT Top Middle Top + Middle Simone Krouwer – University of Antwerp + + + + - - -
  • 12. 2 BRAND PRESENCE CONDITIONS
  • 13. 46,9% Male 53,1% Female 290 ONLINE NEWS READERS Average age: 42 years Min. age = 18 Max. age = 66 73% Visits more than once a week the news website  Binary Logistic Regression  ANCOVA analysis  Preacher & Hayes mediation analysis Simone Krouwer – University of Antwerp
  • 14. DISCLOSURE RECOGNITION  Middle - positioned disclosure sig. more often recognized (22.8% VS 11.2%) X No added value of top- and middle-positioned disclosure disclosure (26.7% VS 22.8%) X Attitudinal PK X Aa d  Conceptual PK F(1, 285) = 8.81, p = .004) Disclosure recognition X Ab X News website Simone Krouwer – University of Antwerp + + - - -
  • 15. BRAND PRESENCE X Conceptual PK  Attitudinal PK (F(1, 283) = 139.24, p < .001) High Low Brand presence News website (B = -.36, SE = .08; 95% CI = -.543 to -.200).  Ab (B = -.23, SE = .08; 95% CI = -.397 – -.079).  Aad (B = -.69, SE = .12; 95% CI = -.960 to -.472). Simone Krouwer – University of Antwerp • All effects controlled for news website experience and involvement • News website, Ab and Aad mediated by attitudinal PK - - - + +
  • 16. Simone Krouwer – University of Antwerp DISCLOSURE RECOGNITION BRAND PRESENCE
  • 17. CONCLUSION Disclose! But disguise the brand… 1. No influence of disclosures on readers’ attitudinal PK & evaluations…  VS other studies?  Different disclosures, different contexts… 2. Influence of brand presence on all evaluations, mediated by attitudinal PK  Important to focus more on brand presence, and other content factors?  Focus more on attitudinal parts of PK! 3. Especially important for news media’s credibility Simone Krouwer – University of Antwerp
  • 18. LIMITATIONS & FUTURE RESEARCH Limitations  Self-reported disclosure recognition  Existing, well-known brand  Only short-term effects for news media Future research  Other content characteristics, e.g. two-sided information (Eisend, 2007)  Different types of brands (also fictive brands)  Long-term effects for advertisers and news media  More direct measurements of attitudes and behavior Simone Krouwer – University of Antwerp
  • 19. THANKS! ANY QUESTIONS?  Simone Krouwer, Karolien Poels & Steve Paulussen University of Antwerp Simone.krouwer@uantwerpen.be @SimoneKrouwer
  • 20.
  • 21. BACK-UP Simone Krouwer – University of Antwerp
  • 22. DISCLOSURE RECOGNITION BRAND PRESENCE X There was no significant influence on conceptual PK  A disclosure positioned at the middle of a page was more often recognized  This disclosure recognition increased Conceptual PK X Disclosure recognition did not increase attitudinal PK  High brand presence did increase attitudinal PK X Disclosure recognition did not decrease Aad, Ab & evaluation of the news website  Which subsequently sig. decreased Aad, Ab & News website evaluation Simone Krouwer – University of Antwerp
  • 23. 2. DISCLOSURE POSITION AND RECOGNITION Top-positioned disclosure Middle-positioned disclosire Top-and-midle positioned disclosure Yes 11,1% 22,8% 26,7% No 88,9% 77,2% 73,3% The text contained the label: “aangeboden door Samsung”. Have you seen this label?
  • 24. BRAND PRESENCE High Low Significantie Conceptual PK 4.49 4.23 p = .120. Attitudinal PK 4.40* 3.28* p < .001. Aad 5.08* 4.54* p < .001. Ab 4.26* 4.41* p = .043. News website 4.28* 4.70* p = .001. * = significantly different
  • 25. DISCLOSURE RECOGNITION Yes No Significantie Conceptual PK 4.75* 4.27* p = .004 Attitudinal PK 3.95 3.96 p = .960 Aad 4.63 4.82 p = .971 Ab 4.43 4.31 p = .362 News website 4.40 4.50 p = .196 * = significantly different
  • 26. 5 EXPLAINING THE NEGATIVE EFFECT OF HIGH BRAND PRESENCE Degree to which readers felt manipulated by the text 1 = Not al all, 4 = neutral, 7 = Very strong In low brand prominence conditions 3.28 4.40 In high brand prominence conditions