Effects of disclosing ads on Instagram: the moderating impact of similarity to the influencer

Influencer marketing is a very important marketing strategy that builds its success on the strong link between influencers and their followers. A recent change in legislation obligates influencers to disclose if they are posting promotional content. Some studies indicate that such disclosures might dampen positive attitudes toward the promoted product as well as toward the influencer itself. With this study (N = 396 female participants), we investigate the effects of the sponsored partnership disclosure on Instagram compared to no disclosure and no brand depiction. As an addition to existing disclosure research, we furthermore explore the moderating role of similarity based on shared interests with the influencer. We manipulate the follower-influencer similarity by exposing our participants to one out of two influencers with a specific interest and by examining the interests of our participants in these topics. Findings suggest that disclosures can foster ad recognition. Disclosures can also lead to increased influencer trustworthiness when there is high follower-influencer similarity. Trustworthiness, in turn, affects purchase intentions for the advertised brand and future intentions to follow the influencer in a positive way.