The Disclosure Dilemma: Examining Consumer Response to Sponsored Content Transparency in Influencer Marketing

Abstract

This research investigates how transparent sponsorship disclosure affects consumer trust along with their levels of engagement and purchasing outcomes. Research using mixed methodology demonstrates that non-sponsored content delivers higher viewer engagement levels due to authenticity assumptions, but sponsored content requires specific clear storytelling practices for positive reception. Brand awareness results from macro influencers while micro influencers succeed at building strong trust relationships with specific target audiences. Marketing success actively depends on transparent sponsorship disclosures, authentic approaches and premium-quality content which creates trust among consumers. Future research needs to examine different ways brands reveal sponsorship along with long-term impact of transparency and how TikTok and other emerging platforms affect consumer trust.