The Effects of Contextual Cues and Visual Clarity in Sponsorship Disclosures on the Interpretive Process: Processing Fluency

Abstract

Abstract This study explored whether the clarity-enhancing elements and contextual cues in sponsorship disclosures would help (or impede) consumers’ recognition and information processing of native advertising and, if so, which elements would affect them more or less. A lab experiment using an eye-tracking device was conducted. Various features of the sponsorship disclosure were drawn from the Federal Trade Commission’s (FTC) disclosure guidelines (e.g., disclosure language, location, repetition, and prominence, including font style, size, color, effects, and background). Findings implied that clear labeling is strongly related to recognition of the commercial nature of the content, whereas clarity enhancers are related to information processing backed by perceptual fluency. In addition, complying with FTC’s disclosure guidelines may increase pleasant processing fluency and recognition of the sponsorship disclosure. A recommendation is made for advertising practitioners, publishers, and regulators to avoid an unnecessary stigma toward native advertising.