Journal of Advertising, 47: 326–346 Copyright # 2018, American Academy of Advertising ISSN: 0091-3367 print / 1557-7805 online DOI: 10.1080/00913367.2018.1544952 Parenting “YouTube Natives”: The Impact of Pre-Roll Advertising and Text Disclosures on Parental Responses to Sponsored Child Influencer Videos Nathaniel J. Evans University of Georgia, Athens, Georgia, USA Mariea Grubbs Hoy The University of Tennessee, Knoxville, Knoxville, Tennessee, USA Courtney Carpenter Childers The University of Tennessee, Knoxville, Knoxville, Tennessee, USA The Children’s Advertising Review Unit’s recent press releases involving child influencer unboxing videos expressed concern that they did not appropriately disclose sponsorship. Placement of preroll advertising was also cited as contributing to the blurring between content and advertising. This study investigated parents’ understanding of and responses to sponsored child influencer unboxing videos. We conducted a 2 3 3 online experiment among 418 parents that examined the influence of sponsorship text disclosure (present or absent) and sponsor pre-roll (sponsor pre-roll, nonsponsor pre-roll, and no pre-roll) on conceptual persuasion knowledge, perceptions of sponsorship transparency, and several outcome measures. We also tested the potential moderating variable of parental mediation. We found that sponsor pre-roll advertising positively impacted parents’ perceptions of sponsorship transparency, which in turn mediated attitudinal and perceptual outcomes. In addition, high levels of parental mediation conditionally impacted the indirect effect of a sponsor pre-roll Address correspondence to Nathaniel J. Evans, Department of Advertising and Public Relations, Grady College of Journalism and Mass Communication, University of Georgia, 120 Hooper Street, Athens, GA 30602, USA. E-mail: nevans4@uga.edu Nathaniel J. Evans (PhD, The University of Tennessee) is an assistant professor in the Department of Advertising and Public Relations, Grady College of Journalism and Mass Communication, University of Georgia. Mariea Grubbs Hoy (PhD, Oklahoma State University) is the DeForrest Jackson Professor of Advertising in the School of Advertising and Public Relations, The University of Tennessee, Knoxville. Courtney Carpenter Childers (PhD, University of Alabama) is an associate professor in the School of Advertising and Public Relations, The University of Tennessee, Knoxville. Color versions of one or more of the figures in the article can be found online at www.tandfonline.com/ujoa. advertisement via sponsorship transparency on perceptions of the unboxing video and attitudes toward the sponsor. Based on the findings, we discuss theoretical, managerial, and public policy implications. At six years old, Ryan of Ryan Toys Review was named “the youngest member of Forbes’ World’s Highest-Paid YouTube Stars for 2017” making an estimated $11 million in 2016 (Forbes 2017). Dolliver (2016) suggests that rather than calling children “digital natives,” “YouTube natives” might be a more appropriate moniker, as nearly three-fourths of children 11 and under view digital videos at least monthly. The top 10 YouTube “kid influencers” in 2017 had a total reach of more than 77 million (Forbes 2017). Unsurprisingly, J. Walter Thompson (2017) named “kid influencers” as one of the “Future 100” trends for 2018. The use of unboxing videos, described as one of the “most lucrative genres on YouTube” (Schmidt 2017), is a way that advertisers employ kid influencers to target a child audience. This tactic shows the child influencer unpacking a new toy, playing with it, and commenting on the experience on his or her own YouTube channel. Within the video context, the Federal Trade Commission (FTC) (2015) defines native advertising as “where an ad’s look and feel closely resembles other videos posted … which customarily are unpaid, consumers are likely to perceive the video as independent content reflecting the impartial opinion of the host, and would not likely attribute it to the sponsoring advertiser” and subsequently would not critically evaluate it as advertising. Thus, influencer posts on YouTube may blur the lines of content 326 PARENTING “YOUTUBE NATIVES” and advertising thus minimizing consumers’ ability to identify these posts as paid sponsorship (FTC 2015). This scenario is likely to be especially problematic for children as noted in two recent Children’s Advertising Review Unit (CARU) press releases that addressed the practice and involved two of the top 10 Forbes (2017) YouTube kid influencers, EvanTube HD (CARU 2016) and Ryan Toys Review (CARU 2017). CARA (2016) noted that YouTube channels, like EvanTube HD, “were both national advertising … and native advertising, or content that bears a strong similarity to independent content.” CARU stated that the child audience, many of whom are too young to read, would not be able to discern that such sponsored YouTube posts featuring a brand’s product were actually advertising. In these examples, the line between advertising and program content was blurred and failed to clearly and conspicuously disclose that the sponsored videos were advertising in a manner that children would understand, thus violating CARU (2014) guidelines. It also commented on the role of pre-roll commercials stating: The potential confusion between sponsored and unsponsored videos is further underscored by the fact that a majority of the videos start with pre-roll ads. Because children may easily recognize these pre-roll videos as commercials they may be even less likely to suspect that further advertisements are contained within the [Ryan Toys Review] videos. (CARU 2017) CARU (2016, 2017) recommended that the videos should place a “clear and prominent audio disclosure stating that the sponsored videos are advertising at the start of the video.” While these suggested recommendations may better delineate for children what is commercial from editorial, parents still maintain responsibility in this regard. Parents play a key role in their child’s consumer socialization and advertising literacy (Nelson et al. 2017) and have expressed concern over the socializing influence of children’s advertising (Grossbart and Crosby 1984). However, “the watching of live, commercial television with the family is no longer the norm” (Nelson et al. 2017, p. 177). In contrast, 72% of parents of children under age eight report cowatching online videos with them. Further, 69% of these parents reported being somewhat or very concerned about “how much advertising and materialism is in media” (Common Sense Media 2017). Of specific concern is parents’ own limited recognition of digital formats, such as advergames, as advertising (Buijzen 2014; Evans, Carlson, and Hoy 2013). Consequently, parents are less likely to moderate children’s access to commercial content or engage in 327 advertising literacy–related discussion. These behaviors, which have been referred to as parental mediation strategies, are defined as “the way parents teach children how to cope with media content and prevent negative consequences of media use on their psychological and mental health” (Hudders and Cauberghe 2018, p. 199). Given children’s ongoing cognitive development, unique vulnerability in terms of recognizing advertising and its persuasive intent, whether in traditional media (Eagle 2007; John 1999), digital media (Ali et al. 2009), or more covert forms such as advergames (An, Jin, and Park 2014), it is imperative that parents recognize emerging covert tactics so that they can engage in parental mediation and facilitate their child’s advertising literacy. While CARU (2016) recommended audio disclosures may sufficiently indicate the persuasive nature of a sponsored video, research in other native (e.g., Evans et al. 2017) or covert (e.g., Boerman, van Reijmersdal, and Neijens 2015; Evans and Hoy 2016) advertising formats among adults indicates that addition of a text disclosure facilitates conceptual persuasion knowledge, or conceptual advertising literacy (Rozendaal et al. 2011), which is “the cognitive dimension that embraces the recognition of advertising, its source and audience, and the understanding of the advertising’s persuasive intent, selling intent, and tactics” (Boerman, van Reijmersdal, and Neijens 2012, p. 1049). Thus, as parents engage in more mediation strategies, such as coviewing and supervising their children’s online content exposure, consideration of how best to ensure that they, too, recognize the sponsored child influencer unboxing videos as advertising is crucial. In this study we examine the potential added effect of a text disclosure on parents’ understanding of child-directed sponsored unboxing videos. In essence, we investigate whether the recommended audio disclosure is sufficient in itself or whether parents would benefit from the inclusion of a text disclosure as well. The pervasiveness of influencer marketing, regulatory concern over consumers’ ability to identify this tactic as advertising, children’s unique vulnerability, consumers’ changing media consumption behaviors, and parents’ socialization and mediation roles converge to prompt our inquiry into parental understanding, perceptions, and attitudes toward child-directed sponsored unboxing videos. Guided by the persuasion knowledge model (Friestad and Wright 1994), recent work on sponsorship transparency (Wojdynski, Evans, and Hoy 2018), and CARU (2016, 2017) cases, we present the results of an online experiment among 418 parents. We used an existing EvanTube HD video that contained the required audio sponsorship disclosure at the opening just prior to the toy unboxing and then showed a text sponsorship disclosure for the first few seconds as the toy unboxing began. 328 N.J. EVANS ET AL. Boerman and van Reijmersdal (2016) called for research into sponsorship disclosure of covert advertising using “natural settings.” Our study’s use of an existing video enhanced the study’s external validity (see Vanwesenbeeck, Opree, and Smits 2017), while online data collection made use of parents’ natural environment for watching a YouTube video. The purpose of our study was threefold. First, we tested how variations in pre-roll advertising (no pre-roll versus nonsponsor pre-roll versus sponsor pre-roll) and sponsorship text disclosures (presence versus absence) impacted parents’ conceptual persuasion knowledge (i.e., ad recognition) and perceptions of sponsorship transparency. Second, based on prior research (see Boerman, Willemsen, and Van Der Aa 2017; Campbell and Evans 2018), we examined the mediating effect of conceptual persuasion knowledge and sponsorship transparency on subsequent attitudes toward and perceptions of childdirected unboxing videos. Third, given parents’ historical role in mediating children’s exposure to advertising and efforts toward consumer socialization, we tested how parental mediation would moderate the effect of pre-roll advertising, conceptual persuasion knowledge, and sponsorship transparency on parents’ attitudes and perceptions of unboxing videos. THEORETICAL BACKGROUND Persuasion Knowledge Model and the Integration of Sponsorship Transparency According to the persuasion knowledge model (Friestad and Wright 1994), consumers develop persuasion knowledge, which they use to respond to persuasion episodes (Campbell and Kirmani 2000) and which reflects a consumer’s ability to identify and understand a marketer’s motives and tactics (Shrum et al. 2012). As individuals mature and gain marketplace experience, they become more proficient at identifying the variety of persuasive efforts and developing appropriate coping strategies and tactics (Carlson, Bearden, and Hardesty 2007), which in turn allows them to make more informed marketplace decisions. However, when consumers are presented with persuasion scenarios with which they have no previous experience, especially if it is distinctly different from or potentially confused with prior experience, they may not recognize the encounter as persuasive in nature (Evans and Park 2015). Subsequently, they may not employ adequate or appropriate coping tactics, which may result in diminished ability to make an informed decision. Covert advertising tactics may reduce the likelihood of advertising recognition (i.e., conceptual persuasion knowledge) through diminished persuasion knowledge activation. Subsequently, consumers may not experience skepticism of the persuasive message nor question the message source’s motivation (Tanaka 1994/1999; Kaikati and Kaikati 2004). Parents have exhibited difficulty in understanding and recognizing children’s advergames, a covert form of advertising (Evans, Carlson, and Hoy 2013). The authors suggested that parents’ existing persuasion knowledge, derived from more traditional advertising formats, might not have been robust enough to trigger recognition of a persuasion episode when exposed to an advergame. Applied to child influencer unboxing videos, parents may not recognize that these videos are indeed sponsored, “incentivized” content and therefore advertising (CARU 2016). This lack of basic recognition of the content as advertising would likely reduce parents’ perceptions of who paid for its placement—in other words, its sponsorship transparency. Parents viewing the video may not experience a basic recognition that (1) what they saw was advertising and (2) a specific entity sponsored, or paid for, its placement. The Effects of Pre-Roll Advertising on Conceptual Persuasion Knowledge and Sponsorship Transparency We propose that parents’ recognition of unboxing videos as advertising (i.e., conceptual persuasion knowledge) and their degree of perceived sponsorship transparency are affected by the presence and type of pre-roll advertising. Specifically, pre-roll advertising that features the same sponsor as the unboxing video and immediately precedes it may be more effective at increasing both conceptual persuasion knowledge and sponsorship transparency of the unboxing video. Sponsor Pre-Roll Advertising Increases Conceptual Persuasion Knowledge In general, pre-roll advertising is reminiscent of the traditional video advertising context in which advertising is distinct from and precedes the video content. Further, pre-rolls are the dominant form of YouTube advertising (O’Kelley 2016). Both factors should contribute to parents’ conceptual persuasion knowledge activation for the advertising that precedes the unboxing component. However, when the sponsor of the unboxing video is also the pre-roll sponsor, there are two potential ways in which parents’ recognition of unboxing videos as advertising is further assisted. First, the presence of a sponsor pre-roll ad increases the occurrence and number of sponsor impressions while viewing the pre-roll and unboxing content. This increases the likelihood that a parent would recognize the same sponsor in the subsequent unboxing video. Second, pre- PARENTING “YOUTUBE NATIVES” roll ads are likely to be recognized as advertising (Campbell et al. 2017). Parents who are exposed to a sponsor pre-roll ad are likely to recognize it as advertising and also may assume a subsequent unboxing video is advertising if the same sponsor is featured. Research on associative theories suggests that increasing the perceived relevance, fit, or linkage between concepts can enhance cognitive processing (Anderson 1983). The association between the sponsor in the unboxing video and the preroll advertising is likely to be noticeable when viewing and evaluating the unboxing video (Rodgers 2003). This salience will make sponsor mentions within the unboxing video likely to trigger conceptual persuasion knowledge. Thus, the presence of a sponsor pre-roll ad would not only allow for advertising recognition of the pre-roll ad to spill over to the unboxing video, the continuity of the sponsor across both the pre-roll and the unboxing video would intensify the likelihood of recognizing the unboxing video as advertising. Therefore, we expect: H1: A sponsor pre-roll ad will result in greater conceptual persuasion knowledge compared to a nonsponsor pre-roll ad or no pre-roll ad. Sponsor Pre-Roll Advertising Increases Sponsorship Transparency Sponsorship transparency is defined as the degree to which a sponsored message makes perceptible to a consumer its paid nature and the identity of the sponsor (Wojdynski, Evans, and Hoy 2018). Sponsorship transparency reflects consumers’ perceptions of sponsorship elements present in an advertisement. These sponsorship elements include the clarity of an advertisement’s sponsor, the degree to which a brand is present, whether and how the communication is disclosed as an advertisement, and the degree to which consumers feel as though the communication attempts to deceive them about the fact that it is advertising. Consumer perceptions concerning these elements of an advertisement serve an evaluative function. Unlike measures of advertising recognition (i.e., conceptual persuasion knowledge) activation, sponsorship transparency does not expose how or why consumers identify and recognize advertising content but instead measures consumers’ overall impressions of how clearly or transparently a given advertising message conveys its sponsored and paid nature (Wojdynski, Evans, and Hoy 2018). As previously noted, exposure to a sponsor preroll adjacent to a sponsored unboxing video produces numerous audio and visual repetitions of the sponsor and brand name coupled with spotlighting product attributes. Findings from Campbell and Evans (2018) indicate that 329 the presence of a banner ad containing the same sponsor featured in an article-style native ad produces greater conceptual persuasion knowledge for the native ad compared to a banner ad with a discrepant sponsor. Likewise, we believe that the presence of a pre-roll ad—and concordant variations in the type of sponsor—may trigger associative mechanisms that connect the advertised brand/sponsor in the pre-roll to the brand/sponsor in the unboxing video. Subsequent perceptions of sponsorship transparency should be heightened under conditions where the sponsor in the unboxing video is also featured in the pre-roll ad. Stated formally, we posit the following hypothesis: H2: A sponsor pre-roll ad will result in greater sponsorship transparency compared to a nonsponsor pre-roll ad or no pre-roll ad. The Effect of Sponsor Text Disclosure on Conceptual Persuasion Knowledge and Sponsorship Transparency Advertising disclosures serve as a mechanism for providing consumers the necessary information to make informed marketplace decisions and prevent them from being deceived (Hoy and Andrews 2004) and thus are a means of enhancing persuasion knowledge (Evans and Hoy 2016). When advertising contains information that highlights the sponsor’s persuasive motives, the likelihood is greater that persuasion knowledge will be activated and consumers will recognize the content as advertising, thus leading to inferences regarding the selling motive (Friestad and Wright 1994). In sum, disclosure of the sponsor’s identity and motive enhances consumers’ ability to recognize the advertisement’s selling and persuasive motives. However, this assumption is rooted in research that has investigated traditional advertising formats, such as television commercials, where conceptual persuasion knowledge is assumed. In their literature review regarding the effects of sponsorship disclosures in covert advertising, Boerman and van Reijmersdal (2016) found mixed results regarding whether a disclosure activates persuasion knowledge and note that it depends on the advertising format. Indeed, mixed results regarding the impact of disclosures in a covert environment are reported for critical processing, the impact on brand responses, and modality effects (Boerman and van Reijmersdal 2016). Further, the bulk of research involving sponsorship disclosure for covert advertising appears to focus on visual modality, such as the use of text or disclosure icons (e.g., Boerman, van Reijmersdal, and Neijens 2015; Evans et al. 2017), rather than investigating the impact of an audioonly disclosure or dual modality where the same 330 N.J. EVANS ET AL. disclosure is presented simultaneously in both text and audio format. One exception is Evans and Hoy (2016) where they found that a text-only disclosure was on par with a dual-modality disclosure in alerting parents that an advergame was advertising. In general, prior work indicates that inclusion of a sponsorship text disclosure facilitates conceptual persuasion knowledge in native (e.g., Evans et al. 2017) or covert (e.g., Boerman, van Reijmersdal, and Neijens 2015; Boerman, Willemsen, and Van Der Aa 2017; Evans and Hoy 2016) advertising formats among adults. With regard to child influencer unboxing videos, a sponsor text disclosure may increase conceptual persuasion knowledge and sponsorship transparency by providing parents with information that is diagnostic in recognizing the content is advertising from an identifiable sponsor. CARU (2014) guidelines state that audio disclosures must be used in television commercials because they provide information to children who are not yet able to read. It similarly advised that unboxing videos should include a clear and conspicuous audio sponsor disclosure (CARU 2016, 2017). Inclusion of a text disclosure should further enhance effectiveness for older children and parents. Thus, we expect that also including a sponsor text disclosure that immediately follows the encouraged audio disclosure will cause consumers to more readily identify a sponsored unboxing video as advertising (i.e., conceptual persuasion knowledge activation) while also increasing its sponsorship transparency. While a sponsor pre-roll ad might link the paying sponsor with a subsequent unboxing video through increased sponsor mentions and salience, a sponsor text disclosure operates through a more overt mechanism by providing parents with information that delineates the advertising nature of the unboxing video while simultaneously specifying the paying sponsor. We expect that the presence (versus absence) of a sponsor text disclosure will moderate the effect of pre-roll advertising on ad recognition and sponsorship transparency. Specifically, under conditions where the sponsor is of the highest saliency and frequency (e.g., sponsor preroll) we expect that the presence (versus absence) of a sponsor text disclosure will provide parents with the most accurate and complete sponsor information, while also signaling that the unboxing video is advertising. Henceforth, the strongest predicted effect on both advertising recognition and sponsorship transparency will emerge under conditions where parents are exposed to a sponsor pre-roll ad as well as the inclusion of a separate sponsor text disclosure. Stated formally, we predict the following: H3: The presence (versus absence) of a sponsor text disclosure will lead to greater (a) conceptual persuasion knowledge and (b) sponsorship transparency when a sponsor pre-roll ad is present compared to a nonsponsor pre-roll ad and no pre-roll ad. The Mediating Effects of Conceptual Persuasion Knowledge and Sponsorship Transparency Sponsor pre-roll advertising not only may make an unboxing video easier to recognize as an ad but also may cause sponsorship elements to be more recognizable. In other words, a sponsor pre-roll ad serves two roles: “[I]t acts as a communication element that aids in advertising recognition and can increase perceptions of sponsorship transparency” (Campbell and Evans 2018, p. 21). The persuasion knowledge model suggests that parents who come to realize the unboxing content is advertising may have heightened defense mechanisms triggered by a “change of meaning,” whereby expectations about the content’s source and intentions are subsequently adjusted (Friestad and Wright 1994). While conceptual persuasion knowledge activation does not always lead to negative outcomes, some evidence suggests a relationship between consumers’ increased conceptual persuasion knowledge (i.e., ad recognition or persuasion knowledge activation) and reductions in attitudes toward the ad (Campbell and Evans 2018; Wojdynski and Evans 2016), the product, or the brand (Boerman, van Reijmersdal, and Neijens 2015; Evans et al. 2017). Furthermore, research indicates that increases in conceptual persuasion knowledge may result in more positive attitudes toward regulation (Nelson, Wood, and Paek 2009). We expect a pre-roll ad to exert an indirect effect on attitudinal outcomes via conceptual persuasion knowledge. More specifically, we expect this indirect effect to be heightened under conditions where a greater number of advertising-related features are shared between the pre-roll ad and the unboxing video. Because a sponsor pre-roll ad and unboxing video share several advertising-related features, its indirect effect on attitudinal and perceptual outcomes will be stronger compared to a nonsponsor pre-roll ad as well as no pre-roll ad. Stated formally, we predict the following mediated effect: H4: The effect of a sponsor pre-roll ad via conceptual persuasion knowledge will result in (a) less positive perceptions of unboxing videos, (b) less positive attitudes toward the brand, (c) less positive attitudes toward the sponsor, and (d) more positive attitudes toward regulation of unboxing videos when compared to a nonsponsor pre-roll ad and no pre-roll ad. While conceptual persuasion knowledge is predicted to mediate the indirect effect of a sponsor pre-roll ad on unboxing video–related attitudes and evaluations, higher perceptions of sponsorship transparency may also PARENTING “YOUTUBE NATIVES” mediate the effect of a pre-roll ad on attitudinal and perceptual outcomes—albeit through a distinctly different processing mechanism. Two-sided message theory, whereby a message contains both positive and negative information, is seen as more effective than simply focusing on positive information because it reduces counterarguments and enhances message persuasiveness (Crowley and Hoyer 1994). To the extent that cues that signal message sponsorship are evaluated as important “negative” information, the presence of a sponsor pre-roll may result in parents perceiving the unboxing videos as more forthcoming and upfront. As suggested by Campbell and Evans (2018), ads that are perceived as more forthcoming in communicating their persuasive nature and source are likely to be evaluated more favorably. Therefore, we expect that parents are likely to perceive such unboxing videos more positively, with less favorability toward regulation under conditions where sponsorship transparency is heightened. We also expect such favorability to extend to attitudes relating to the brand and sponsor. Stated formally we predict the following: H5: The effect of a sponsor pre-roll ad via sponsorship transparency will result in (a) more positive perceptions of unboxing videos, (b) more positive attitudes toward the brand, (c) more positive attitudes toward the sponsor, and (d) less positive attitudes toward regulation of unboxing videos when compared to a nonsponsor pre-roll ad and no pre-roll ad. The Moderating Effect of Parental Mediation Research indicates that parents have historically expressed concerns over the socializing influence of children’s advertising (Grossbart and Crosby 1984; Walsh, Laczniak, and Carlson 1998). More recently, however, contemporary parental concerns have centered on children’s online activities (Livingstone and Bober 2006) and exposure to age-inappropriate content (Eagle 2007; Eagle, Bulmer, and De Bruin 2003). Parents subscribe to videoon-demand services for a variety of reasons, including having content suitable for their children, family viewing, as well as the absence of commercials (E-Poll Market Research 2016). However, even if parents act as the original “ad blocker,” their children are still likely to be exposed to marketing- and advertising-related content across other online platforms (e.g., YouTube) and may not realize that their children are seeing persuasive content. Given parents’ historical concern regarding children’s exposure to advertising content, such content’s socializing influence, and the parents’ desire to act as gatekeepers of marketing- and advertising-related information, we intended to test the effect of parental 331 mediation on parents’ self-reported attitudes and perceptions relating to child-directed influencer unboxing videos. Parental mediation is defined as “the way parents teach children how to cope with media content and prevent negative consequences of media use on their psychological and mental health” (Hudders and Cauberghe 2018, p. 199). Parental mediation consists of the strategies parents use to maximize benefits and minimize risk of media influence for their children (Jiow, Lim, and Lin 2017). A growing area of research now centers on the impact of parental mediation on children’s ability to recognize advertising content (i.e., advertising literacy) and subsequent brand-related attitudes, preferences, or requests (An and Lee 2010; Buijzen 2009; Cantor and Wilson 2003). To date, few research studies have specifically investigated the impact of parental mediation on children’s advertising literacy and subsequent attitudinal evaluations in the context of embedded or covert advertising (see Hudders and Cauberghe 2018; Naderer et al. 2018; Vanwesenbeeck, Walrave, and Ponnet 2016). Even less attention has been given to the potential effects of parental mediation on parent-related advertising recognition, perceptions, and attitudes (see Evans 2014). Findings concerning the impact of parental mediation on advertising literacy and subsequent evaluative outcomes vary across the aforementioned studies. For example, while Naderer et al. (2018) found no moderating effect of parental mediation on children’s persuasion knowledge of a product placement, parental mediation exerted a negative moderating effect on children’s brand evaluations. Similarly, Hudders and Cauberghe (2018) found that children’s self-reported parental mediation did not affect their identification of commercial content of a movie-based product placement but did have a positive effect on their attitudes toward the brand. Evans (2014) investigated the impact of parental mediation on parents’ evaluations and ability to infer the selling and persuasive intent of a child-directed advergame. Findings indicated that parental mediation had no effect on parents’ selling and persuasive intent but negatively affected their perceptions of advergames. Among both child and adult audiences, these limited findings demonstrate that parental mediation exerts little to no impact on the ability to infer intent (i.e., conceptual persuasion knowledge) or perceptions about the sponsor of the message in child-directed advertising contexts. However, findings from these previous studies suggest that parents’ preexisting proclivity toward parental mediation of advertising can moderate their advertising- and brand-related attitudes. (Hudders and Cauberghe 2018; Naderer et al. 2018). To this extent, we posit that parental mediation exerts an impact on parents’ perceptions and 332 N.J. EVANS ET AL. FIGURE 1. Study model and hypotheses. TABLE 1 Participant Profile (N ¼ 418) Parent Profile Sex Male Female Unspecified Education Some high school High school grad Some college/associate’s degree Bachelor’s degree Master’s degree or higher Age Child Profile N % 210 207 1 50.2 49.5 0.2 9 70 143 113 83 2.2 16.7 34.2 27.0 19.9 Range M 21–68 38.1 evaluations of child-directed unboxing videos following the activation of conceptual persuasion knowledge and perceptions of sponsorship transparency. Therefore, rather than affecting parents’ conceptual persuasion knowledge or perceptions of sponsorship transparency, parental mediation may conditionally impact the indirect effect of a pre-roll ad on perceptions and attitudes via conceptual persuasion knowledge or sponsorship transparency. Stated formally, we predict the following: H6: The indirect effect of a sponsor pre-roll ad via conceptual persuasion knowledge on (a) perceptions of unboxing videos, (b) attitude toward the brand, (c) attitude toward the sponsor, and (d) attitude toward regulation of unboxing videos will be moderated by parental mediation. Sex Male Female Age 4 5 6 7 8 9 10 11 N % 226 192 54.1 45.9 32 46 32 65 55 56 73 58 7.7 11.0 7.7 15.6 13.2 13.4 17.5 13.9 H7: The indirect effect of a sponsor pre-roll ad via sponsorship transparency on (a) perceptions of unboxing videos, (b) attitude toward the brand, (c) attitude toward the sponsor, and (d) attitude toward regulation of unboxing videos will be moderated by parental mediation. METHOD An online experiment was conducted with a 3 (pre-roll ad: no pre-roll þ unboxing video only versus nonsponsor pre-roll þ unboxing video versus sponsor pre-rollþ unboxing video) 2 (sponsorship text disclosure: present versus absent) factorial design. See Figure 1 for final study model and hypotheses. A Qualtrics online panel recruited 428 adults living in the United States with a PARENTING “YOUTUBE NATIVES” child between the ages of four and 11. Parents of children between the ages of four and 11 were selected because research suggests children’s advertising literacy (e.g., advertising recognition or conceptual persuasion knowledge) typically develops in accordance with their cognitive abilities (Eagle 2007; John 1999). When completing the research instrument, parents were instructed to answer with respect to their oldest child in the age range and to indicate the child’s age (Carlson and Grossbart 1988; Evans, Carlson, and Hoy 2013). Subjects were randomly assigned to one of the six conditions. They began the procedure by providing profile information about themselves and their children. Next, they answered questions about parental mediation strategies related to their child’s online behavior. Next, they were exposed to one of the six treatments followed by a series of questions assessing conceptual persuasion knowledge, sponsorship transparency, perceptions of unboxing videos, attitude toward regulating unboxing videos, attitude toward the brand, and attitude toward the sponsor. Average time to complete the study was 961.1 seconds. Ten parents took more than 50 minutes (3,000 seconds) to complete the study. They were removed from subsequent analysis, resulting in a total of 418 usable responses (see Table 1 for sample profile). Stimuli Stimuli development took into consideration CARU’s (2016, 2017) commentary regarding child influencer unboxing videos. We used an existing EvanTube HD video of Evan and Jillian unboxing Kinetic Sand (brand) manufactured by Spin Master (sponsor). This video was chosen because it featured a gender-neutral toy with commentary by a boy and girl. The video was edited to two minutes and captured the complete unboxing of the product and both children’s reactions to its texture, play potential, and comparison to another unnamed competitor. The video began with a two-second audio disclosure that stated “Free products and paid support provided by Spin Master,” which was voiced by Evan as the EvanTube HD logo entered the screen from the right side and stopped when centered. We retained the audio disclosure across all treatments in accordance with CARU’s recommendation and to enhance external validity. We created six versions of the stimuli (see Appendix 1) to reflect the six treatments resulting from manipulations of our two independent variables: pre-roll ad (no pre-roll versus nonsponsor pre-roll versus sponsor pre-roll) and sponsorship text disclosure manipulation (present versus absent). In sum, we had the resulting six experimental conditions: (1) no pre-roll/text disclosure absent; (2) no pre-roll/text disclosure present; (3) nonsponsor pre-roll/ 333 text disclosure absent; (4) nonsponsor pre-roll/text disclosure present; (5) sponsor pre-roll/text disclosure absent; and (6) sponsor pre-roll/text disclosure present. All participants saw the same unboxing video with the exception of the experimental manipulation of text disclosure (present/absent). The four treatments that involved a nonskippable 30second pre-roll ad that preceded the two-minute unboxing video, resulting in a 150-second stimuli. The remaining two treatments that were the unboxing video only were each two minutes. Parents’ minimum and maximum exposure time to their respective stimuli was controlled for. Parents assigned to the unboxing video only treatments had a minimum exposure time of 120 seconds, while parents assigned to the pre-roll ad treatments had a minimum exposure time of 150 seconds. All parents were advanced to the next page of the survey once five minutes (300 seconds) had expired. Pre-Roll Manipulation CARU (2017) stated that the presence of pre-roll commercials could cause confusion in (child) viewers’ ability to identify the unboxing video as advertising because the context resembles traditional television viewing. To investigate this issue, we manipulated the pre-roll ad such that there was one of three conditions: no pre-roll (i.e., unboxing video only), sponsor pre-roll (i.e., Spin Master Kinetic Sand featuring boys and girls playing with the product), and nonsponsor pre-roll (a Target ad featuring candy and a variety of children dressed in Halloween costumes). Sponsorship Text Disclosure Manipulation The existing video included the sponsorship text disclosure “Free products and paid support provided by Spin Master” in white lettering against a black backdrop, with Evan introducing himself and stating that he is going to talk about Kinetic Sand. The disclosure began at the 5-second mark and remained on screen until the 25second mark. However, the background was black until the 14-second mark and then switched to white when showing the Spin Master logo, followed by various backgrounds that panned while spotlighting packaging contents. The text disclosure was virtually illegible during this time. When the Spin Master logo is on screen (two seconds), Evan says, “And it’s made by Spin Master.” The sponsorship text disclosure was professionally edited to block the text (text disclosure absent/audio only) or it remained present. 4.38 (0.57) 4.32 (0.70) 4.39 (0.75) 4.46 (0.77) 4.49 (0.67) 4.61 (0.68) 6.09 (1.15) 5.78 (1.24) 5.99 (1.14) 5.94 (1.30) 5.94 (1.17) 5.95 (1.26) Sponsorship Transparency M (SD) 3.75 (1.11) 3.65 (1.11) 3.53 (1.03) 3.57 (1.28) 3.61 (1.03) 3.54 (1.33) Perceptions of Unboxing Videos M (SD) 5.59 (1.49) 5.49 (1.54) 5.44 (1.23) 5.45 (1.48) 5.48 (1.35) 5.15 (1.55) Attitude Toward the Brand (Kinetic Sand) M (SD) Note. All variables were assessed on a 1 to 7 scale where a higher number reflected a higher level of the measure. No pre-roll/no text disclosure No pre-roll/ text disclosure Nonsponsor pre-roll/no text disclosure Nonsponsor preroll/text disclosure Sponsor pre-roll/no text disclosure Sponsor pre-roll/ text disclosure Condition Conceptual Persuasion Knowledge M (SD) TABLE 2 Means and Standard Deviations 5.25 (1.41) 5.06 (1.58) 5.01 (1.32) 4.97 (1.68) 4.90 (1.46) 4.55 (1.58) Attitude Toward the Sponsor (Spin Master) M (SD) 4.91 (1.24) 4.88 (1.15) 4.78 (1.11) 4.82 (1.15) 4.74 (0.99) 5.02 (1.18) Attitude Toward Regulating Unboxing Videos M (SD) 334 N.J. EVANS ET AL. 335 PARENTING “YOUTUBE NATIVES” TABLE 3 Parental Mediation Strategies: Descriptive Statistics Measures % Any Agree M SD 80.4 78.5 73.3 81.1 88.8 66.9 5.52 5.45 5.22 5.52 5.97 5.07 1.54 1.45 1.51 1.38 1.22 1.58 I have strict rules about the time my child spends online. I stay nearby when my child is online. I watch the screen when my child is online. I help my child when they use the Internet. I talk to my child about Internet use. I sit with my child when they are online. Note. Sum of 5, 6, and 7 on a Strongly Disagree (1) to Strongly Agree (7) scale. Measures Dependent Variables Boerman, Willemsen, and Van Der Aa (2017) used an adaptation of “I thought (ad format) was advertising” to assess conceptual persuasion knowledge and note that “Similar one-item measures have been used in earlier studies to estimate consumers’ ability to recognize advertising” (p. 87). In accordance with prior research, this study’s participants were asked to rate their agreement with “I thought that the YouTube video was advertising” on a 1 (Strongly disagree) to 7 (Strongly agree) scale (M ¼ 5.93, SD ¼ 1.21) (see Boerman, van Reijmersdal, and Neijens 2012, 2015; Boerman, Willemsen, and Van Der Aa 2017; Evans et al. 2017; Ham, Nelson, and Das 2015). Perceptions of unboxing videos was measured via six statements on a 1 (Strongly Disagree) to 7 (strongly agree) scale, in part adapted from Evans (2014); Evans, Carlson, and Hoy (2013); and Grossbart and Crosby (1984). Two of the measures were negatively valanced and reversecoded. Prior to responding to these measures, parents were told “Unboxing videos are shown on video-sharing websites, such as YouTube, and typically show a person unpacking, examining, and using the product while commenting on the experience.” Example statements included “Unboxing videos make children want things they don’t really need” (reverse coded), and “Unboxing videos directed at children don’t lead to family conflict” (M ¼ 3.61, SD ¼ 1.16, a ¼ .742). Attitudes toward regulating unboxing videos was measured via four statements on a 1 (Strongly disagree) to 7 (Strongly agree) scale adapted from Evans (2014) and Walsh, Laczniak, and Carlson (1998). Example statements included “Unboxing videos that use children’s food-related content should not be allowed” and “Unboxing videos that have a corporate sponsor should be required to identify themselves as advertising” (M ¼ 4.86, SD ¼ 1.14, a ¼ .681). Sponsorship transparency was measured via 12 statements from 1 (Strongly disagree) to 7 (Strongly agree). Examples items include “The video was clearly branded”; “The video was trying to fool consumers into thinking it wasn’t advertising”; and “The advertiser tried to obscure the fact that the video was an ad.” The 12 items were adapted from Wojdynski, Evans, and Hoy’s (2018) sponsorship transparency scale to be applicable to the stimuli (M ¼ 4.44, SD ¼ .69, a ¼ .782). Attitudes toward the sponsor (Spin Master) and brand (Kinetic Sand) were assessed on five separate 7-point semantic differential items: Unappealing/Appealing, Bad/ Good, Unpleasant/Pleasant, Unfavorable/Favorable, and Unlikeable/Likeable (Spears and Singh 2004) (MSpin Master ¼ 4.94, SD ¼ 1.52, a ¼ .97; MKinetic ¼ 5.43, SD ¼ 1.45, a ¼ .96). As seen in Table 2, descriptive statistics for all dependent variables are indicated for each experimental condition. Moderator Parental mediation Six parental mediation items were measured on a 1 (Strongly disagree) to 7 (Strongly agree) scale. These items included both measures of active mediation (e.g., staying near when the child is online, watching the screen when the child is online, helping the child use the Internet, talking to the child about Internet use, sitting with the child when he or she is online) and restrictive mediation (e.g., having strict rules about the time the child spends online) (Evans 2014; Livingstone and Helsper 2008; Livingstone et al. 2017). The six parental mediation items were aggregated and averaged (M ¼ 5.46, SD ¼ 1.13, a ¼ .871) for subsequent analysis. As seen in Table 3, similar to the parents in the Common Sense Media (2017) study, our parent sample was highly involved in mediating their children’s online behavior. In particular, 66.9% of the parents sit with their child when he or she is online; 73.3% watch the screen when the child is online, and 78.5% stay nearby when the child is online. As noted by 336 N.J. EVANS ET AL. FIGURE 2. Direct effects of sponsor pre-roll advertising (versus no pre-roll þ nonsponsor pre-roll advertising) on mediating and dependent variables. Note that both total and (direct) effect coefficients are indicated for independent variable–dependent variable relationships; p < .05; p < .01; p < .001. Livingstone et al. (2017), parents who engage in one online parental mediation strategy are highly likely to do others. Confound Variables Influencer familiarity (“I am familiar with the individual speaking in the unboxing video”) (M ¼ 3.18, SD ¼ 2.23), brand familiarity (“I am familiar with Kinetic”) (M ¼ 4.59, SD ¼ 1.93), and sponsor familiarity (“I am familiar with Spin Master”) (M ¼ 4.01, SD ¼ 2.05) were included as potential confounding variables to test whether unboxing video–based attitudes and perceptions differed between pre-roll and text disclosure conditions. The three variables were measured on 1 (Strongly disagree) to 7 (Strongly agree) scales. RESULTS Confound Check A one-way analysis of variance (ANOVA) was performed to explore the possibility that dependent outcomes could have been a result of inherent differences between our conditions. Results indicated no significant differences between pre-roll and text disclosure conditions with respect to parents’ influencer familiarity (F (5, 412) ¼ .696, p ¼ .626), brand familiarity (F (5, 412) ¼ .943, p ¼ .453), or sponsor familiarity (F (5, 412) ¼ .385, p ¼ .859). An additional independent sample t test was run to test the potential influence of child age (i.e., ages four to seven versus ages eight to 11) on the dependent, mediating, and moderating variables. Results indicated no significant effect of child age on moderating, mediating, or dependent variables. The Effects of Pre-Roll Advertising and Text Disclosures on Conceptual Persuasion Knowledge and Sponsorship Transparency Hypothesis 1 predicted that the presence of a sponsor preroll ad would result in greater conceptual persuasion knowledge compared to a nonsponsor pre-roll ad and no pre-roll ad, while hypothesis 2 predicted the same effect, albeit for sponsorship transparency. Hypothesis 3 predicted that the presence of a sponsor text disclosure would increase the effect of a sponsor pre-roll ad on (a) conceptual persuasion knowledge and (b) sponsorship transparency. A two-way ANOVA was run to test hypotheses 1 through 3. The main effect of pre-roll advertising on conceptual persuasion knowledge was not significant (F (2, 412) ¼ .019, p ¼ .981). However, the main effect of pre-roll advertising on sponsorship transparency was significant (F (2, 412) ¼ 3.00, p ¼ .05). A post hoc least significant difference (LSD) test showed that parents in the sponsor pre-roll (M ¼ 4.54, SD ¼ .78) and no pre-roll (M ¼ 4.35, SD ¼ .63) conditions differed significantly at p < .05, while parents in the nonsponsor pre-roll condition (M ¼ 4.42, SD ¼ .76) were not significantly different. The 337 PARENTING “YOUTUBE NATIVES” TABLE 4 Conditional Indirect Effects of Sponsor Pre-Roll Ad via Sponsorship Transparency on Dependent Measures Parental Mediation Perceptions of unboxing videos 1 SD 4.33 Mean 5.46 þ1 SD 6.59 Attitude toward the brand 1 SD 4.33 Mean 5.46 þ1 SD 6.59 Attitude toward the sponsor 1 SD 4.33 Mean 5.46 þ1 SD 6.59 Attitude toward regulating unboxing videos 1 SD 4.33 Mean 5.46 þ1 SD 6.59 Effect (b) SE LLCI ULCI .08 .06 .12 .03 .03 .05 .05 .01 .03 .07 .13 .23 .09 .10 .12 .05 .05 .06 .01 .02 .02 .21 .21 .26 .08 .14 .20 .05 .06 .08 .01 .03 .04 .19 .27 .38 .024 .003 .02 .03 .02 .03 .09 .04 .03 .02 .03 .09 Note. SE ¼ standard error; LLCI ¼ lower level confidence interval; ULCI ¼ upper level confidence interval. inclusion of a sponsor text disclosure had no main effect on advertising recognition (F (2, 412) ¼ .896, p ¼ .344) or sponsorship transparency (F (2, 412) ¼ .444, p ¼ .506). In regard to hypotheses 3a and 3b, no significant interaction occurred between sponsor text disclosure and pre-roll advertising conditions on parents’ conceptual persuasion knowledge (F (2, 412) ¼ .709, p ¼ .493), nor on their perceptions of sponsorship transparency (F (2, 412) ¼ .589, p ¼ .555). While the presence of a sponsor pre-roll significantly increased sponsorship transparency of the unboxing video, the presence of a sponsor text disclosure exerted no additional effect. These findings support hypothesis 2 but fail to support hypotheses 1, 3a, and 3b. Mediation Analysis The predicted mediation effects set forth in hypotheses 4 and 5 were conducted by examining the indirect effect of a sponsor pre-roll ad across sponsor text disclosure conditions (present and absent). To test the effect of a sponsor pre-roll ad, PROCESS V3.0 created a comparative referent group that combined the no pre-roll ad and nonsponsor pre-roll ad conditions (i.e., sponsor pre-roll ad ¼1, nonsponsor pre-roll ad ¼0, no pre roll ad ¼0). We used Model 4 of Hayes’s (2012) PROCESS V3.0 macro in SPSS with conceptual persuasion knowledge and sponsorship transparency serving as parallel mediators. All analyses used 5,000 bootstrap samples to estimate the bias-corrected bootstrap confidence intervals (BCBCIs). Indirect Effects of Sponsor Pre-Roll Ad via Conceptual Persuasion Knowledge Findings demonstrated no significant impact of a sponsor pre-roll ad on conceptual persuasion knowledge (b ¼ .01, boot SE ¼ .14, 95% BCBCI [.29, .27], p ¼ .95). However, conceptual persuasion knowledge negatively impacted perceptions of unboxing videos (b ¼ .25, boot SE ¼ .04, 95% BCBCI [.34, .17], p < .001) and positively impacted attitudes toward regulating unboxing videos (b ¼ .22, boot SE ¼ .05, 95% BCBCI [.13, .31], p < .001) (see Figure 2). Results indicate no significant indirect effect of a sponsor pre-roll ad via conceptual persuasion knowledge on perceptions of unboxing videos (b ¼ .002, boot SE ¼ .04, 95% BCBCI [.08, .07]), attitude toward the brand (b ¼ .001, boot SE ¼.01, 95% BCBCI [.03, .03]), attitude toward the sponsor (b ¼ .001, boot SE ¼ .01, 95% BCBCI [.02, .02]), or attitude toward regulating unboxing videos (b ¼ .002, boot SE ¼.03, 95% BCBCI [.06, .06]). Therefore, the findings do not support hypotheses 4a through 4d. Indirect Effects of Sponsor Pre-Roll Ad via Sponsorship Transparency Findings demonstrated a positive impact of a sponsor pre-roll ad on sponsorship transparency (b ¼ .19, boot SE ¼ .04, 95% BCBCI [.03, .35], p ¼ .02). This finding offers additional support for hypothesis 2. Sponsorship transparency exerts a significant positive effect on perceptions of unboxing videos (b ¼ .39, boot SE ¼ .08, 95% BCBCI [.24, .54], p < .001), attitude toward the brand (b ¼ .57, boot SE 338 N.J. EVANS ET AL. TABLE 5 Summary of Support for Hypotheses Hypothesis Pre-roll advertising H1: A sponsor pre-roll ad will result in greater conceptual persuasion knowledge compared to a nonsponsor pre-roll ad or no pre-roll ad. H2: A sponsor pre-roll ad will result in greater sponsorship transparency compared to a nonsponsor pre-roll ad or no pre-roll ad. Text disclosures H3a: The presence (versus absence) of a sponsor text disclosure will lead to greater conceptual persuasion knowledge when a sponsor pre-roll ad is present compared to a nonsponsor pre-roll ad and no pre-roll ad. H3b: The presence (versus absence) of a sponsor text disclosure will lead to greater sponsorship transparency when a sponsor pre-roll ad is present compared to a nonsponsor pre-roll ad and no pre-roll ad. Sponsor pre-roll advertising H4a: The effect of a sponsor pre-roll ad via conceptual persuasion knowledge will result in less positive perceptions of unboxing videos when compared to a nonsponsor pre-roll ad and no pre-roll ad. H4b: The effect of a sponsor pre-roll ad via conceptual persuasion knowledge will result in less positive attitudes toward the brand when compared to a nonsponsor pre-roll ad and no pre-roll ad. H4c: The effect of a sponsor pre-roll ad via conceptual persuasion knowledge will result in less positive attitudes toward the sponsor when compared to a nonsponsor pre-roll ad and no pre-roll ad. H4d: The effect of a sponsor pre-roll ad via conceptual persuasion knowledge will result in more positive attitudes toward regulation of unboxing videos when compared to a nonsponsor pre-roll ad and no pre-roll ad. H5a: The effect of a sponsor pre-roll ad via sponsorship transparency will result in more positive perceptions of unboxing videos when compared to a nonsponsor preroll ad and no pre-roll ad. H5b: The effect of a sponsor pre-roll ad via sponsorship transparency will result in more positive attitudes toward the brand when compared to a nonsponsor pre-roll ad and no pre-roll ad. H5c: The effect of a sponsor pre-roll ad via sponsorship transparency will result in more positive attitudes toward the sponsor when compared to a nonsponsor pre-roll ad and no pre-roll ad. H5d: The effect of a sponsor pre-roll ad via sponsorship transparency will result in less positive attitudes toward regulation of unboxing videos when compared to a nonsponsor pre-roll ad and no pre-roll ad. Parental mediation H6a: The indirect effect of a sponsor pre-roll ad via conceptual persuasion knowledge on perceptions of unboxing videos will be moderated by parental mediation. H6b: The indirect effect of a sponsor pre-roll ad via conceptual persuasion knowledge on attitude toward the brand will be moderated by parental mediation. H6c: The indirect effect of a sponsor pre-roll ad via conceptual persuasion knowledge on attitude toward the sponsor will be moderated by parental mediation. H6d: The indirect effect of a sponsor pre-roll ad via conceptual persuasion knowledge on attitude toward regulation of unboxing videos will be moderated by parental mediation. Supported Not Supported X X X X X X X X X X X X X X X X (Continued) 339 PARENTING “YOUTUBE NATIVES” TABLE 5 (Continued). Hypothesis Supported H7a: The indirect effect of a sponsor pre-roll ad via sponsorship transparency on perceptions of unboxing videos will be moderated by parental mediation. H7b: The indirect effect of a sponsor pre-roll ad via sponsorship transparency on attitude toward the brand will be moderated by parental mediation. H7c: The indirect effect of a sponsor pre-roll ad via sponsorship transparency on attitude toward the sponsor will be moderated by parental mediation. H7d: The indirect effect of a sponsor pre-roll ad via sponsorship transparency on attitude toward regulation of unboxing videos will be moderated by parental mediation. ¼ .10, 95% BCBCI [.37, .76], p < .001), and attitude toward the sponsor (b ¼ .78, boot SE ¼ .10, 95% BCBCI [.58, .98], p < .001) (see Figure 2). Significant positive indirect effects of a sponsor pre-roll ad via sponsorship transparency were indicated for perceptions of unboxing videos (b ¼ .07, boot SE ¼ .03, 95% BCBCI [.01, .15]), attitude toward the brand (b ¼ .11, boot SE ¼ .05, 95% BCBCI [.02, .22]), and attitude toward the sponsor (b ¼ .15, boot SE ¼ .06, 95% BCBCI [.03, .28]). However, there was no significant indirect effect of a sponsor pre-roll ad via sponsorship transparency on attitudes toward regulating unboxing videos (b ¼ .01, boot SE ¼ .02, 95% BCBCI [.02, .05]). These findings support hypotheses 5a, 5b, and 5c, but they do not support hypothesis 5d. The Moderating Effect of Parental Mediation To test hypotheses 6 and 7, we used Model 14 of Hayes’s (2012) PROCESS V3.0 macro in SPSS with conceptual persuasion knowledge and sponsorship transparency serving as parallel mediators and parental mediation as a b-path moderator. All analyses used 5,000 bootstrap samples to estimate the BCBCIs. Analyses examined the impact of parental mediation on the indirect effect of a sponsor pre-roll ad on dependent measures via conceptual persuasion knowledge (hypothesis 6) and sponsorship transparency (hypothesis 7). Results indicated no conditional effect of parental mediation on the indirect effect of sponsor pre-roll ad via conceptual persuasion knowledge on perceptions of unboxing videos (b ¼ .001, boot SE ¼ .02, 95% BCBCI [.05, .05], attitude toward the brand (b ¼ .001, boot SE ¼ .01, 95% BCBCI [.03, .03], attitude toward the sponsor (b ¼ .001, boot SE ¼ .01, 95% BCBCI [.03, .03], or attitude toward regulating unboxing videos (b ¼ .003, boot SE ¼ .06, 95% BCBCI [.12, .10]. These findings do not support hypotheses 6a through 6d. Not Supported X X X X However, results indicate a conditional increase in the positive indirect effect of a sponsor pre-roll ad via sponsorship transparency on perceptions of unboxing videos (b ¼ .12, boot SE ¼ .05, 95% BCBCI [.03, .23], index of moderated mediation (b ¼ .05, boot SE ¼ .03, 95% BCBCI [.007, .11]), and attitude toward the sponsor (b ¼ .20, boot SE ¼ .08, 95% BCBCI [.04, .37], index of moderated mediation (b ¼ .05, boot SE ¼ .03, 95% BCBCI [.004, .12]) when parental mediation equals þ1 standard deviation (see Table 4). Parental mediation did not change the indirect effect of a sponsor pre-roll ad via sponsorship transparency on attitudes toward the brand (b ¼ .12, boot SE ¼ .06, 95% BCBCI [.02, .25], index of moderated mediation (b ¼ .01, boot SE ¼ .02, 95% BCBCI [.03, .07]), or attitude toward regulating unboxing videos (b ¼ .02, boot SE ¼ .03, 95% BCBCI [.03, .09], index of moderated mediation (b ¼ .02, boot SE ¼ .02, 95% BCBCI [.01, .07]). These findings suggest that the positive indirect effects of a sponsor pre-roll ad via sponsorship transparency on perceptions of unboxing videos and attitudes toward the sponsor are intensified when parental mediation is high. These findings support hypotheses 7a and 7c; they do not support hypotheses 7b or 7d. DISCUSSION Study Importance and Key Findings Prompted by the growing prevalence of child-directed influencer advertising, recent CARU press releases, concerns about children’s’ lack of understanding, and parents’ socialization and mediation roles in this process, this study investigated parents’ understanding, recognition, and perceptions of child-directed sponsored unboxing videos. To realize this aim, our study had three specific goals. First, we tested how variations in pre-roll advertising and sponsorship text disclosures impacted parents’ conceptual persuasion knowledge and perceptions of sponsorship transparency. Second, we examined 340 N.J. EVANS ET AL. the mediating effect of conceptual persuasion knowledge and sponsorship transparency on subsequent attitudes toward and perceptions of child-directed unboxing videos. Third, we tested how parental mediation would moderate the effect of pre-roll advertising, conceptual persuasion knowledge, and sponsorship transparency on parents’ attitudes and perceptions of unboxing videos. See Table 5 for a summary of our hypotheses and support. Key findings indicate that variations in our pre-roll advertising (sponsor versus nonsponsor versus none) and sponsor text disclosure (present versus absent) conditions did not affect parents’ conceptual persuasion knowledge of the unboxing video. However, parents who viewed a sponsor pre-roll ad reported higher levels of sponsorship transparency of the unboxing video compared to parents who saw no pre-roll ad or a nonsponsor pre-roll ad. Interestingly, the addition of a sponsor text disclosure exerted no additional effect on sponsorship transparency or conceptual persuasion knowledge. As predicted, sponsorship transparency mediated the positive effect of a sponsor pre-roll ad on parents’ perceptions of unboxing videos, attitude toward the brand, and attitude toward the sponsor. Furthermore, the positive indirect effects of a sponsor pre-roll ad through sponsorship transparency on perceptions of unboxing videos and attitude toward the sponsor were intensified when parental mediation was high. THEORETICAL AND PUBLIC POLICY IMPLICATIONS Audio and Text Disclosures in Sponsored Unboxing Videos The inclusion of a text disclosure provided no additional benefit beyond the existing, CARU-specified audio disclosure. Our findings add to the “mixed results” regarding effective sponsorship disclosure in covert advertising (Boerman and van Reijmersdal 2016) and is the only study to date that has examined the impact of an audio disclosure only (i.e., text disclosure absent) in native advertising. As Boerman and colleagues have observed, new advertising formats suggest that adults may need to adapt or adjust their existing persuasion knowledge. Our understanding of what factors contribute positively to that process, such as disclosure modality, may counter what is predicted based on extant knowledge gleaned through research in traditional advertising contexts. Whether a child or adult audience, public policy regulators are concerned that sponsored influencer posts in social media inherently blur content and advertising. The FTC (2015, 2017) admonishes advertisers to use clear and conspicuous audio and/or video sponsorship disclosure to enhance consumer recognition of persuasive content (i.e., advertising). YouTube (2016) provides for, but does not require, static title cards that can precede or follow a video as a means of disclosing sponsorship. It also offers an overlay that adds a 10-second text disclosure stating “Includes paid promotion.” The Interactive Advertising Bureau (IAB) (2018) recommendations for sponsorship disclosure focus on the prominence, presentation, placement, and proximity—in other words, the FTC’s recommended “4Ps of Full Disclosure” (Fair 2014), as it relates to text disclosures. Our experimental designed represented the inclusion of an audio disclosure at the beginning of an unboxing video and sought to increase external validity by using the existing text disclosure in the EvanTube HD video stimuli. Contrary to our expectations, including the existing sponsorship text disclosure, which is shown immediately after the existing audio disclosure, enhanced neither the parents’ conceptual persuasion knowledge nor the perceived sponsorship transparency. In sum, inclusion of an additional single modality disclosure in text form that met the FTC’s 4 Ps of Full Disclosure (Fair 2014) and IAB (2018) guidance made no contribution to parents’ recognition of the video as advertising (i.e., conceptual persuasion knowledge), nor to its perceived sponsorship transparency. Two potential explanations offer insight. First, we note that this manipulation using two sequentially placed single-modality sponsorship disclosures (i.e., the CARU (2016) recommended audio disclosure followed by a separate text disclosure of the same information that already existed in the unboxing video stimuli) does not represent a dual-modality presentation whereby the same disclosure is presented simultaneously in audio and text formats. In other words, in the opening two seconds when Evan provides the voiceover for the audio disclosure that states “Free products and paid support provided by Spin Master,” the same words should have appeared simultaneously on screen in sufficient font, contrast, and duration. Dual modality is advised by the FTC (1970) as part of its Clear and Conspicuous Standard, and its superiority has been supported in many traditional advertising contexts (e.g., Morris, Mazis, and Brinberg 1989; Murray, Manrai, and Manrai 1998) but not in a covert format such as advergames (e.g., Evans and Hoy 2016). Second, we note that the EvanTube HD video we used presented the existing text disclosure while Evan was beginning his unboxing of the toy and commentary, thus acting as a distraction, which is contrary to Federal Communications Commission (FCC) and FTC (2000) guidance. The visual and verbal distraction of the unboxing process acts as interference and hinders consumer processing of the target information (i.e., the disclosure). As noted by Hoy and Andrews (2004, p. 173), “[V]isually presenting verbal PARENTING “YOUTUBE NATIVES” information in the presence of distraction suppresses the formation of the phonological code of the target information (i.e., the sponsorship disclosure) (Baddeley 1986; Penney 1989) by interfering with or weakening the formation of counterarguments (Batra and Ray 1986).” Thus, we recommend that inclusion of a text disclosure be presented with its audio counterpart (i.e., dual modality) and without any verbal or visual distraction. Sponsorship Transparency and the Effects of Sponsor Pre-Roll Our study suggests that sponsor pre-roll advertising, in contrast to no pre-roll or nonsponsor pre-roll advertising, results in more positive perceptions of unboxing videos as an advertising tactic and more positive attitudes toward the brand and sponsor. Simply recognizing that the unboxing video was advertising (i.e., activation of conceptual persuasion knowledge) yielded none of these benefits. Prior research incorporating sponsorship transparency suggests that consumers may not always negatively evaluate advertising efforts that clearly indicate their persuasive nature or paying entity (Campbell and Evans 2018). Our study’s findings offer additional support in this vein. Specifically, a sponsor pre-roll ad was more effective at increasing parents’ perceptions of sponsorship transparency for child-directed sponsored unboxing videos than both nonsponsor and no pre-roll ads. This suggests that consumers form impressions of sponsorship transparency based on myriad advertising or marketing elements. The sponsorship transparency construct includes brand presence as one of its four underlying factors. Brand presence offers benefits to advertisers by contributing to the learning and recall of brand name and attributes, yet it also assists consumers whose persuasion knowledge and/ or advertising schema is triggered by brand cues. The remaining sponsorship transparency construct factors may explain why advertisers appear to benefit from transparency. The sponsorship clarity and disclosure factors underscore consumers’ perception that who is sponsoring the content or advertising is clearly communicated. In tandem, this perceived clear sponsorship disclosure contributes to the fourth sponsorship transparency factor: lack of deception (Wojdynski, Evans, and Hoy 2018). The presence of a sponsor pre-roll likely enhanced the evaluation of all four sponsorship transparency factor components. The subsequent sense of fair play exhibited in the unboxing video may result in more favorable attitudes that ripple throughout the brand and advertising evaluation process. More importantly, enhanced parental perceptions of sponsorship transparency, which includes a clear brand presence in the video, a clear understanding of who 341 sponsored the video, a sense that the video disclosed itself as advertising in some fashion, and the evaluation that the video as advertising was not deceptive or obscured, benefits both parents and their children. Specifically, parents exposed to a pre-roll ad featuring the same sponsor in a subsequent unboxing video results in a more accurate understanding of the paying entity responsible for the unboxing content. This, in turn, affords parents the opportunity to discuss with their children the nature of the unboxing content, with the probable aim of increasing child-related advertising literacy. In addition, enhancing sponsorship transparency through the use of a sponsor pre-roll may result in a native advertising environment that achieves the FTC’s objectives of consumers recognizing the incentivized nature of native influencer posts. MANAGERIAL IMPLICATIONS Incorporate Sponsorship Transparency We encourage advertisers and brands to embrace sponsorship transparency. Given that advertisers want consumers to have a positive attitude toward the brand/sponsor, our findings suggest that advertisers could directly benefit from the purposeful inclusion of advertising elements that increase the presence of the brand, clarity of the sponsor, or paid relationship therein, which make consumer perceptions of sponsorship transparency stronger (Campbell and Evans 2018). Even though managers may be reluctant to engage in any tactic that brings to attention the sponsored or advertising nature of the communication, for fear that persuasion knowledge may be activated, transparency is increasingly viewed as an imperative corporate value whether it relates to consumer data usage and privacy concerns or sponsorship disclosure in native advertising. Encourage Parental Mediation We found that higher levels of parental mediation strengthened the positive indirect effects of a sponsor preroll on perceptions of unboxing videos and attitude toward the sponsor. While existing research suggests that increased parental mediation can mitigate children’s brand attitudes, preferences, and requests (An and Lee 2010; Buijzen 2009; Cantor and Wilson 2003), our findings suggest the opposite effect, albeit with respect to parent rather than child-related outcomes. Van der Voort, Nikken, and van Lil (1992) found that the mediation strategy of coviewing is greater among parents who spend more time with media themselves. Similarly, one explanation for our results may be that parents who tend to have higher mediation scores might expose themselves to more online content in general, which could also include 342 N.J. EVANS ET AL. objectionable and child-inappropriate pornographic or violent content. When parents see advertising content (like unboxing videos) aimed at children, we speculate that such content may be more tolerable in comparison to child-directed advertising efforts. For those who saw a sponsor pre-roll, which increased perceptions of sponsorship transparency, higher levels of parental mediation may have boosted positive sentiment toward the unboxing content as well as the sponsor. Advertisers and brands can benefit indirectly from encouraging parents to engage in mediation. The fact that today’s children ages nine and younger spend more than two hours per day with screens (Common Sense Media 2017), translates into an increasingly complex and challenging media environment that parents are finding difficult to keep up with. According to the American Academy of Pediatrics (2016), parents of five- to 18-year-olds are encouraged to mediate overall media consumption by viewing media content together with their children, having open discussions regarding popular content and creating a family media use plan that limits access to smartphones, laptops, and apps during certain periods of time. Conversations addressing persuasion within the unboxing video realm is an important family issue. Parents of younger children could be encouraged to coview these videos and specifically point out that the child influencer got the toys for free, received help in making the video, and/or was paid so that “kids like you would want the toy and ask me to buy it.” Parents’ facilitation of an educational discussion hopefully better prepares the child for future occurrences with this popular form of content. Advertisers such as toy manufacturers could be part of consumer education for both parents and children by initializing partnerships with trade associations such as the Toy Industry Association and educational organizations such as Common Sense Media. LIMITATIONS AND FUTURE RESEARCH The foundational concern regarding these unboxing videos was whether they are recognized as sponsored persuasive communication rather than simply entertainment content. The parents in our study self-reported a high level of conceptual persuasion knowledge. Although the study measure was a commonly used question to assess advertising recognition (see Boerman, van Reijmersdal, and Neijens 2012, 2015; Boerman, Willemsen, and Van Der Aa 2017; Evans et al. 2017; Ham, Nelson, and Das 2015), this single question may not offer as robust a measure in contrast to the vetted 12item Sponsorship Transparency Scale (Wojdynski, Evans, and Hoy 2018). Further, the question phrasing lends itself to social desirability bias. In part, our lack of finding significant results for some of our independent variable manipulations may have been an artifact of the advertising recognition measure. Given policy makers’ growing concern that consumers of all ages be able to recognize advertising when they see it, a robust advertising recognition measure based on scale development protocol (see Churchill 1979; DeVellis 2012) would offer a valuable avenue of research for both adult and child audiences. Numerous opportunities exist to explore opportunities for improving sponsorship disclosures in unboxing videos, including evaluating CARU’s (2016) recommended audio disclosure, dual modality’s superiority, and the impact of distractions among both parent and child audiences. Manipulations of modality and distraction focus on disclosures’ structural traits (Hoy and Stankey 1993; Hoy and Andrews 2004) but not the linguistic component to assure comprehension (Stewart and Martin 2004). Given that many young children watch the unboxing videos of child influencers such as Evan and Ryan, it is important that they comprehend the audio disclosure. Research is needed that tests how to articulate that the child influencer got the toys for free and what “support” is for making the video. CONCLUSION J. Walter Thompson (2017) notes that “kid influencers are born into an environment of intelligent devices, where lines between the physical and the digital are increasingly blurred” (p. 24). Not only are the physical and digital blurred, but so too is the delineation between content and advertising. In response to the changing media environment to digital formats, the digital advertising market for children is projected to reach $1.2 billion by 2019 (PWC 2017). Advertisers see numerous opportunities including allowing “brands to use more engaging content—videos and games, for instance—to connect with kids” and “the creation of communities through the use of social media and influencer marketing” (PWC 2017, p. 6). An aspect that makes the under-18 audience so desirable is that these viewers take the time to engage with social media and come back every day (Carter 2016). By focusing on parents, who are key stakeholders in children’s consumer socialization, this study provides an initial investigation into the arena of sponsored child influencer unboxing videos, a tactic which will only grow in usage and subsequently concern among policymakers. As Boerman, Willemsen, and Van Der Aa (2017) observe, “[A]lthough persuasion knowledge is assumed to be established at adulthood (Friestad and Wright 1994; John 1999), there are circumstances in which even adults need to refine or adjust this knowledge” (p. 84). CARU (2016, 2017) noted that children may not be able to recognize child influencer unboxing videos as advertising because they blur the boundaries of persuasive and PARENTING “YOUTUBE NATIVES” entertainment content. In these press releases, CARU recommended that sponsored unboxing videos include an audio sponsorship disclosure prior to the video’s start. The self-regulatory organization also expressed concern that pre-roll advertising might contribute to the problem because children may recognize the more familiar online advertising format and take it as a cue that they have already seen the advertising and that what follows will not be additional advertising. Further, Connell, Lauricell, and Wartella (2015) note the limited research on parental mediation of younger children’s technology use. Evans (2014) observed the dearth of research that examines the impact parental mediation might have on parents’ advertising-related outcome measures. To date, few studies have investigated this emerging covert advertising tactic, which targets a young and vulnerable audience (see Craig and Cunningham 2017; Martınez and Olsson 2018; Nicoll and Nansen 2018). As CARU’s (2014) core principle 8 states, “Although there are many influences that affect a child’s personal and social development, it remains the prime responsibility of the parents to provide guidance for children. Advertisers should contribute to this parentchild relationship in a constructive manner” (p. 6). 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