Disclosing Brand Placements in Movies

Abstract

Abstract. Recently, the European Union has decided that disclosures of brand placement are obligatory. However, the effects of such disclosures remain largely unstudied. Departing from theoretical notions of the persuasion knowledge model, this study examined how different types of disclosures and viewer involvement with a movie clip affected attitudes toward the placed brand. In addition, the role of attitude toward the placement as mediator was tested. The study employed a one-factorial (no disclosure, disclosure of source, disclosure of source and intent) between-subjects design using an online survey (N = 191). The results showed that disclosure of both the commercial source and the persuasive intent of brand placement resulted in more negative placement attitudes and in turn in more negative brand attitudes than in the absence of a disclosure. In addition, involvement with the movie moderated the disclosure effects: The brand attitudes of high-involved viewers became more negative via placement attitudes when disclosures were shown, regardless of the type of disclosure. For low-involved viewers, a disclosure of both the commercial source and the persuasive intent was necessary to affect brand attitude negatively via placement attitude. These results show that brand placement disclosures can mitigate persuasion. However, the effects depend on the disclosure type and movie involvement. These findings have important implications for theory, legislation, and practice.