How to strategically disclose sponsored content on Instagram? The synergy effects of two types of sponsorship disclosures in influencer marketing

Abstract Given the burgeoning usage of influencers in social media marketing, the need to understand how consumers react to sponsored messages is on the rise. Drawing on the signaling theory, Elaboration Likelihood Model (ELM), and the message sidedness literature, this study illustrates the interaction effect between two types of sponsorship disclosures—brand influence disclosure (brand vs. honest opinion) and compensation type disclosure (gift vs. payment vs. sales commission)—on purchase intentions via influencer credibility, influencer-follower parasocial interaction (PSI), and brand attitudes. Through an experiment with 401 female participants, we found that a proper combination of these two types of disclosures generates a two-sided disclosure message and motivates people to scrutinize this two-sided message, which will boost influencer credibility, PSI, brand attitudes, and eventually, purchase intentions.