Abstract

As many brands use social media influencers (SMIs) on Instagram to advertise, not disclosing advertised content affects how consumers perceive these influencers. The purpose of this study was to investigate two objectives: 1) recent advertising disclosure types on Instagram and 2) the factors that affect consumer responses towards Instagram influencers posting advertised content. Using an experimental 2x2 between-subjects design (N=200), the findings show that “sponsored” and “paid partnership with” are two recent types of ad disclosures. However, both factors are insignificantly different from each other. Also, ad disclosure condition enhances the trustworthiness of the influencer than no disclosure. Ad skepticism, source credibility, and the level of persuasion strongly relate to how consumers perceive Instagram influencers advertising for brands. These factors enable consumers to assess if the influencer is a reliable source of information when faced with advertisement. Ultimately, using disclosure gives full information to consumers about the persuasive intent, as well as increases positive consumer responses towards the influencer who discloses, thereby, enhancing the ethical use of the influencer advertising strategy and long-term consumer relationship.