The Effects of Advertising Disclosure Regulations on Social Media: Evidence From Instagram.

We study the effects of advertising disclosure regulations in social media markets. Using data from a large sample of Instagram influencers in Germany and Spain and a difference‐in‐differences approach, we empirically evaluate the effects of German strengthening of disclosure regulations on post con...

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Publicado en:RAND Journal of Economics (Wiley-Blackwell) Vol. 56; no. 1; pp. 74 - 91
Autores principales: Ershov, Daniel, Mitchell, Matthew
Formato: Artículo
Publicado: Wiley-Blackwell Spring2025
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: The Effects of Advertising Disclosure Regulations on Social Media: Evidence From Instagram.
      aug:
        au:
          Ershov, Daniel
          Mitchell, Matthew
        affil:
          UCL School of Management
          Graduate Department of Management, University of Toronto, Toronto, Canada
      su:
        Disclosure
        Social media
        Consumers
        Social media in marketing
        Machine learning
      sug:
        subj:
          Disclosure
          Social media
          Consumers
          Social media in marketing
          Machine learning
      ab: We study the effects of advertising disclosure regulations in social media markets. Using data from a large sample of Instagram influencers in Germany and Spain and a difference‐in‐differences approach, we empirically evaluate the effects of German strengthening of disclosure regulations on post content and follower engagement. We measure whether posts include suggested disclosure terms and use text‐based approaches (keywords, machine learning) to assess whether a post is sponsored. We show substantial adoption of disclosure but also a 12% increase in sponsored content and an increase in the share of undisclosed‐sponsored content consumers are exposed to. We also find reductions in engagement, suggesting that followers were likely negatively affected.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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