LAUSR

Abstract 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.