Prior disclosure of product placement: The more explicit the disclosure, the better the brand recall and brand attitude

Despite frequent calls for research from policy makers and scholars, the effect of the prior disclosure of product placement has yet to be confirmed. A preliminary analysis of eight weeks of prime-time television programs revealed that most brand appearances (60.1%) were not disclosed. For those that were disclosed, the placed brands were acknowledged at the end of the programs. A between-subjects web-based experimental study was then conducted to examine the effect of three levels of prior disclosure (none vs. partial vs. full) on placement effectiveness (N = 1100). The results showed that explicitly disclosing the source and intent of a placed brand enhanced the recall and liking of it. Level of prior disclosure also had an indirect effect on the evaluation of a placed brand via the mediator of program liking, while psychological trait reactance worked as a moderator. The results have significant theoretical and practical implications for the field, which are discussed together with future research avenues.