The effects of brand placement disclosures on skepticism and brand memory

Abstract

Recently, the European Union decreed that European countries should use disclosures of brand placement in programs and movies on television to guarantee fair communication. However, an understanding of the effects of disclosing brand placement is lacking. The present study is the first to test the impact of the new TV sponsorship regulations regarding disclosure of brand placement. In an experiment (N = 107), we examine viewers’ opinions about disclosures along with the effects of disclosure timings. Analyses show that brand memory increases when a disclosure is shown. In addition, brand memory is significantly higher when the disclosure is shown during the placement than when it is shown after the placement. Disclosures do not seem to activate critical attitudes. Respondents confronted with a disclosure, regardless of the timing, were not more skeptical towards brand placement than respondents who were not exposed to a disclosure. These findings have important implications for theory and public policy regarding brand placement disclosures.