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The Role of a Companion Banner and Sponsorship Transparency in Recognizing and Evaluating Article-style Native Advertising

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  • Campbell, Colin
  • Evans, Nathaniel J.

Abstract

Native advertising is a relatively new form of online advertising that matches the format of surrounding non-advertising content. The fact that native advertising blends into its context risks deceiving consumers who may be unaware the content they are viewing is actually advertising. Article-style native advertising, a native ad form that mimics the style of online news articles, is particularly concerning since consumers may not expect advertising to appear in such a format. Such concern is supported by research finding low efficacy of traditional disclosures on article-style native advertisements. We investigate a novel means of increasing ad recognition through the use of companion banner advertising. Across two experiments we demonstrate that inclusion of a companion banner boosts consumer recognition of the paid nature of article-style native advertising to the same degree as a traditional disclosure. In both cases we also find that the negative reactions caused by ad recognition are muted when a native ad is perceived as having higher sponsorship transparency. These effects occur for both familiar and unfamiliar brands. Taken together, results not only detail the efficacy of a new means of achieving adequate disclosure, but also develop greater understanding of how consumers respond to article-style native advertising.

Suggested Citation

  • Campbell, Colin & Evans, Nathaniel J., 2018. "The Role of a Companion Banner and Sponsorship Transparency in Recognizing and Evaluating Article-style Native Advertising," Journal of Interactive Marketing, Elsevier, vol. 43(C), pages 17-32.
    • Handle: RePEc:eee:joinma:v:43:y:2018:i:c:p:17-32
    DOI: 10.1016/j.intmar.2018.02.002
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    References listed on IDEAS

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    1. Campbell, Margaret C & Kirmani, Amna, 2000. "Consumers' Use of Persuasion Knowledge: The Effects of Accessibility and Cognitive Capacity on Perceptions of an Influence Agent," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 27(1), pages 69-83, June.
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    Cited by:

    1. Jie Zhao & Can Yan, 2020. "User Acceptance of Information Feed Advertising: A Hybrid Method Based on SEM and QCA," Future Internet, MDPI, vol. 12(12), pages 1-17, November.
    2. van Reijmersdal, Eva A. & Rozendaal, Esther & Hudders, Liselot & Vanwesenbeeck, Ini & Cauberghe, Veroline & van Berlo, Zeph M.C., 2020. "Effects of Disclosing Influencer Marketing in Videos: An Eye Tracking Study Among Children in Early Adolescence," Journal of Interactive Marketing, Elsevier, vol. 49(C), pages 94-106.
    3. Gerrath, Maximilian H.E.E. & Usrey, Bryan, 2021. "The impact of influencer motives and commonness perceptions on follower reactions toward incentivized reviews," International Journal of Research in Marketing, Elsevier, vol. 38(3), pages 531-548.
    4. Delia Cristina Balaban & Meda Mucundorfeanu & Larisa Ioana Mureșan, 2022. "Adolescents’ Understanding of the Model of Sponsored Content of Social Media Influencer Instagram Stories," Media and Communication, Cogitatio Press, vol. 10(1), pages 305-316.
    5. Pelletier, Mark J. & Horky, Alisha Blakeney & Fox, Alexa K., 2021. "Fexit: The effect of political and promotional communication from friends and family on Facebook exiting intentions," Journal of Business Research, Elsevier, vol. 122(C), pages 321-334.
    6. Freya De Keyzer & Nathalie Dens & Patrick De Pelsmacker, 2023. "The processing of native advertising compared to banner advertising: an eye-tracking experiment," Electronic Commerce Research, Springer, vol. 23(3), pages 1921-1940, September.
    7. Grigsby, Jamie L. & Mellema, Hillary N., 2020. "Negative Consequences of Storytelling in Native Advertising," Journal of Interactive Marketing, Elsevier, vol. 52(C), pages 61-78.
    8. De Jans, Steffi & Hudders, Liselot, 2020. "Disclosure of Vlog Advertising Targeted to Children," Journal of Interactive Marketing, Elsevier, vol. 52(C), pages 1-19.
    9. Dongmei Li & Ung T’chiang Chow & Cecilia Yin Mei Cheong, 2022. "A Critical Genre Analysis of Covert Advertising Through Short-Videos in Douyin: The Chinese Version of Tik-Tok," SAGE Open, , vol. 12(4), pages 21582440221, November.
    10. Kim, Do Yuon & Kim, Hye-Young, 2021. "Influencer advertising on social media: The multiple inference model on influencer-product congruence and sponsorship disclosure," Journal of Business Research, Elsevier, vol. 130(C), pages 405-415.
    11. Ľudmila Čábyová & Alena Hrušková & Martina Rybnikárová, 2023. "Social Media and Advertising Literacy of the Older Adults," Studies in Media and Communication, Redfame publishing, vol. 11(1), pages 143-152, March.
    12. Anand Jhawar & Sanjeev Varshney & Prashant Kumar, 2024. "Sponsorship Disclosure on social media: literature review and future research agenda," Management Review Quarterly, Springer, vol. 74(3), pages 1589-1617, September.

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