“This Video is Sponsored by L’Oréal” - A Test of Competing Hypotheses on the Effects of Sponsorship

Abstract: Thesis purpose: The aims of this thesis are to investigate (1) the effect of sponsorship disclosure timing (before vs. after) on attitudes towards the brand and attitudes towards the vlogger in a beauty vlog context and (2) test a possible moderating effect of discount codes on the relationships between disclosure timing and attitudes towards the brand and the vlogger. These two aims were pursued by testing competing hypotheses. Methodology: An experiment was conducted with a 2 (disclosure timing: before vs. after) x 2 (discount: discount vs. no discount) between subjects design. Theoretical perspective: The study draws on the literature streams of influencer marketing and sponsorship disclosure. Theories of persuasion knowledge, exchange theory and equity theory are also applied. Empirical data: The data was collected through a web-based survey. 410 responses were gathered from social media beauty communities. Conclusions: In a beauty vlog context, disclosure timing had no effects on attitudes, but – as seen through a preliminary data analysis – rather affected the ability to recall a disclosure statement. Moreover, offering a discount did not moderate the relationships between disclosure timing and brand attitude and attitude towards the vlogger. Furthermore, in contrast to previous studies, sponsorship disclosures only affected attitudes towards the vlogger negatively, while brand attitudes remained unaffected. Although our initial framework was not supported, the findings provided valuable new insights. We therefore conclude with a modified version of our initial theoretical framework, together with an alternative framework for testing the effects of sponsorship disclosures in beauty vlogs.