User generated content presenting brands on social media increases young adults’ purchase intention

On Facebook, companies not only actively spread branded content themselves, they also encourage users to do so. Hence, persuasive messages blend into the stream of content, making it increasingly difficult for users to identify and cope with this covert advertising content. In an experimental study, we confronted users to disclosed advertisements; brand; and user-generated posts allowing us to discern effects on persuasion knowledge, affective reaction and, in turn, purchase intention. Furthermore, we manipulated viewer’s attention to the posts. In line with the Persuasion Knowledge Model, we found that user-generated content did not trigger persuasion knowledge and a subsequent negative affect. Thus, user-generated content led to higher purchase intention compared to disclosed advertisement and brand posts. Surprisingly, participants’ heightened attention decreased their negative affective reaction towards the advertisement post compared to the brand post. We conclude that policy makers should consider employing advertising disclosures for user-generated content.