Higher Seminar in Economics | The Effects of Advertising Disclosure Regulations on Social Media: Evidence From Instagram
Welcome to Higher Seminar in Economics organised by the Department of Economics, SSE. The seminar speaker is Daniel Ershov, Assistant Professor of Economics at the Toulouse School of Economics, presenting:
"The Effects of Advertising Disclosure Regulations on Social Media: Evidence From Instagram", joint work with Matt Mitchell (Toronto).
We study the effects of advertising disclosure regulations in social media markets. Theory generates ambiguous predictions about the effects of regulations on the equilibrium amount of advertising content, user engagement and welfare. Using data from a large sample of Instagram influencers in Germany and Spain and a difference-in-differences approach, we empirically evaluate the effects of German disclosure regulations on post content and follower engagement. We measure whether posts include suggested disclosure terms and use text-based approaches (keywords, machine learning) to assess whether a post is sponsored. We show a substantial adoption of disclosure after regulations, but also an increase in sponsored content including undisclosed sponsored content. We also find reductions in engagement, suggesting that followers were likely negatively affected.
Daniel Ershov is an Assistant Professor of Economics at the Toulouse School of Economics. He specializes in Empirical Industrial Organization, with a particular focus on firm competition, regulation and digital markets.
More about the speaker
This is an online seminar which will take place via Zoom. The link to the seminar will be distrubted by invitation only. Please contact firstname.lastname@example.org if you would like to attend the seminar.