IDEAS home Printed from https://ideas.repec.org/a/eee/joepsy/v107y2025ics0167487025000121.html
   My bibliography  Save this article

Identified disclosure to increase Consumers’ detection of native advertising

Author

Listed:
  • Shilian, Dalia
  • Pe'er, Eyal

Abstract

Native advertising of online content, such as articles embedded within news websites, is a covert attempt by marketers to influence consumers’ attitudes and behavior. Despite attempts to regulate and mandate disclosure for native ads, studies repeatedly find that consumers continue to fail to detect native and disguised ads even when they include various disclosure labels. We argue that the failure of these disclosures stems from consumers becoming so habituated to these notices that they do not recognize or use them effectively. We propose and test a form of “smart disclosure” for native ads requiring explicit identification of the name of the company or marketing agent paying for the non-original content. In two online experiments, we show how identified disclosures significantly and consistently increase detection of native ads rates compared to no disclosures or generic disclosures. We discuss important implications arising from using smart disclosures for native ads in particular and consumer protection in general.

Suggested Citation

  • Shilian, Dalia & Pe'er, Eyal, 2025. "Identified disclosure to increase Consumers’ detection of native advertising," Journal of Economic Psychology, Elsevier, vol. 107(C).
    • Handle: RePEc:eee:joepsy:v:107:y:2025:i:c:s0167487025000121
    DOI: 10.1016/j.joep.2025.102800
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0167487025000121
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.joep.2025.102800?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Friestad, Marian & Wright, Peter, 1994. "The Persuasion Knowledge Model: How People Cope with Persuasion Attempts," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 21(1), pages 1-31, June.
    2. Ginger Zhe Jin & Phillip Leslie, 2003. "The Effect of Information on Product Quality: Evidence from Restaurant Hygiene Grade Cards," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(2), pages 409-451.
    3. Lord, Kenneth R. & Putrevu, Sanjay, 1993. "Advertising and publicity: An information processing perspective," Journal of Economic Psychology, Elsevier, vol. 14(1), pages 57-84, March.
    4. Samuel Issacharoff, 2011. "Disclosure, Agents, and Consumer Protection," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 167(1), pages 56-71, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michelle Nelson & Jiwoo Park, 2015. "Publicity as Covert Marketing? The Role of Persuasion Knowledge and Ethical Perceptions on Beliefs and Credibility in a Video News Release Story," Journal of Business Ethics, Springer, vol. 130(2), pages 327-341, August.
    2. Lee, Alice J. & Ames, Daniel R., 2017. "“I can’t pay more” versus “It’s not worth more”: Divergent effects of constraint and disparagement rationales in negotiations," Organizational Behavior and Human Decision Processes, Elsevier, vol. 141(C), pages 16-28.
    3. Villas-Boas, Sofia B, 2020. "Reduced Form Evidence on Belief Updating Under Asymmetric Information," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt08c456vk, Department of Agricultural & Resource Economics, UC Berkeley.
    4. Susan Feng Lu, 2012. "Multitasking, Information Disclosure, and Product Quality: Evidence from Nursing Homes," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 21(3), pages 673-705, September.
    5. Tahir Andrabi & Jishnu Das & Asim Ijaz Khwaja, 2017. "Report Cards: The Impact of Providing School and Child Test Scores on Educational Markets," American Economic Review, American Economic Association, vol. 107(6), pages 1535-1563, June.
    6. David W. Lehman & Balázs Kovács & Glenn R. Carroll, 2014. "Conflicting Social Codes and Organizations: Hygiene and Authenticity in Consumer Evaluations of Restaurants," Management Science, INFORMS, vol. 60(10), pages 2602-2617, October.
    7. Felipe Arteaga & Adam J Kapor & Christopher A Neilson & Seth D Zimmerman, 2022. "Smart Matching Platforms and Heterogeneous Beliefs in Centralized School Choice," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 137(3), pages 1791-1848.
    8. Hallstein, Eric & Villas-Boas, Sofia Berto, 2009. "Are Consumers Color Blind?: an empirical investigation of a traffic light advisory for sustainable seafood," CUDARE Working Papers 120535, University of California, Berkeley, Department of Agricultural and Resource Economics.
    9. Laurent Bouton, 2011. "Good rankings are bad - Why reliable rankings can hurt consumers," Boston University - Department of Economics - Working Papers Series WP2011-002, Boston University - Department of Economics.
    10. Suwelack, Thomas & Hogreve, Jens & Hoyer, Wayne D., 2011. "Understanding Money-Back Guarantees: Cognitive, Affective, and Behavioral Outcomes," Journal of Retailing, Elsevier, vol. 87(4), pages 462-478.
    11. Rolf Uwe Fülbier & Thorsten Sellhorn, 2023. "Understanding and improving the language of business: How accounting and corporate reporting research can better serve business and society," Journal of Business Economics, Springer, vol. 93(6), pages 1089-1124, August.
    12. Jong Yoon Lee & Jae Hee Park & Jong Woo Jun, 2019. "Brand Webtoon as Sustainable Advertising in Korean Consumers: A Focus on Hierarchical Relationships," Sustainability, MDPI, vol. 11(5), pages 1-10, March.
    13. Skarmeas, Dionysis & Leonidou, Constantinos N., 2013. "When consumers doubt, Watch out! The role of CSR skepticism," Journal of Business Research, Elsevier, vol. 66(10), pages 1831-1838.
    14. Seth Freedman & Melissa Kearney & Mara Lederman, 2012. "Product Recalls, Imperfect Information, and Spillover Effects: Lessons from the Consumer Response to the 2007 Toy Recalls," The Review of Economics and Statistics, MIT Press, vol. 94(2), pages 499-516, May.
    15. Chen, Simiao & Jin, Zhangfeng & Bloom, David E., 2020. "Act Early to Prevent Infections and Save Lives: Causal Impact of Diagnostic Efficiency on the COVID-19 Pandemic," IZA Discussion Papers 13749, Institute of Labor Economics (IZA).
    16. Mark Groza & Mya Pronschinske & Matthew Walker, 2011. "Perceived Organizational Motives and Consumer Responses to Proactive and Reactive CSR," Journal of Business Ethics, Springer, vol. 102(4), pages 639-652, September.
    17. Wong, Woei Chyuan & Batten, Jonathan A. & Ahmad, Abd Halim & Mohamed-Arshad, Shamsul Bahrain & Nordin, Sabariah & Adzis, Azira Abdul, 2021. "Does ESG certification add firm value?," Finance Research Letters, Elsevier, vol. 39(C).
    18. Aaker, Jennifer L. & Brumbaugh, Anne M. & Grier, Sonya A., 2000. "Non-target Markets and Viewer Distinctiveness: The Impact of Target Marketing on Advertising Attitudes," Research Papers 1578, Stanford University, Graduate School of Business.
    19. Belay, Dagim G. & Jensen, Jørgen D., 2020. "‘The scarlet letters’: Information disclosure and self-regulation: Evidence from antibiotic use in Denmark," Journal of Environmental Economics and Management, Elsevier, vol. 104(C).
    20. Makofske, Matthew Philip, 2020. "Disclosure policies in inspection programs: The role of specific deterrence," Economics Letters, Elsevier, vol. 196(C).

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • M3 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising
    • M38 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Government Policy and Regulation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joepsy:v:107:y:2025:i:c:s0167487025000121. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/joep .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.