Frontiers: How Much Influencer Marketing Is Undisclosed? Evidence from Twitter
Marketing Science, 44(3), 505-515.
Abstract
We study the disclosure of influencer posts on Twitter across a large set of brands using more than 100 million posts and a text-based classifier for undisclosed sponsorship. In the preferred empirical specification, 96% of sponsored posts are not disclosed; a lower-bound classification still implies an undisclosed share of 82%. Despite stronger enforcement of disclosure regulations, the share of undisclosed posts decreases only slightly over time. Compared to disclosed posts, undisclosed posts tend to be associated with young brands with a large Twitter following.
Main Finding
Most sponsored influencer advertising in the Twitter data is undisclosed: 96% in the preferred specification and 82% under a lower-bound classification.
Policy Relevance
Disclosure enforcement can miss most sponsored content consumers encounter, so researchers and regulators need tools that detect non-disclosed advertising directly.
See Also
- [Policy]The Majority of Influencer Advertising Is Undisclosed
- [Paper]The Effects of Advertising Disclosure Regulations on Social Media: Evidence from Instagram
- [Paper]Expansion of Influencer Advertising: Evidence from the NCAA NIL Policy
- [Paper]Sharing News Left and Right: Frictions and Misinformation on Twitter
- [Paper]Interaction of Spectrum Auctions and Mobile Market Competition: Review of Theory and Evidence from European 4G Auctions
- [Policy]Pricing Algorithms as Third-Party Facilitators of Collusion
- [Paper]Algorithmic Pricing and Competition: Empirical Evidence from the German Retail Gasoline Market
- [Policy]Algorithmic Pricing and Competition