Paper Type

Short

Paper Number

PACIS2026-1362

Description

As virtual influencers become more prevalent, regulatory and platform pressures are making AI identity disclosure increasingly common. This study examines whether AI identity disclosure changes the effectiveness of advertising-product fit in virtual influencer endorsements. Using a dataset of 1,793 Instagram endorsement posts and estimating models with OLS regression and influencer fixed effects, we test how informational versus transformational advertising interacts with search versus experience products to shape user engagement. The results show a significant congruence effect: informational advertising is more effective for search products, whereas transformational advertising is more effective for experience products. Although AI identity disclosure attenuates this interaction, it does not eliminate or reverse it. Theoretically, this study extends advertising-product fit research to virtual influencer contexts under disclosure. Managerially, the findings suggest that firms should prioritize advertising-product fit rather than treating AI identity disclosure as inherently disruptive to user engagement.

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05-DataAnalytics

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Jul 5th, 12:00 AM

Disclosure but Not Disruption: Advertising-Product Fit in Virtual Influencer Endorsements

As virtual influencers become more prevalent, regulatory and platform pressures are making AI identity disclosure increasingly common. This study examines whether AI identity disclosure changes the effectiveness of advertising-product fit in virtual influencer endorsements. Using a dataset of 1,793 Instagram endorsement posts and estimating models with OLS regression and influencer fixed effects, we test how informational versus transformational advertising interacts with search versus experience products to shape user engagement. The results show a significant congruence effect: informational advertising is more effective for search products, whereas transformational advertising is more effective for experience products. Although AI identity disclosure attenuates this interaction, it does not eliminate or reverse it. Theoretically, this study extends advertising-product fit research to virtual influencer contexts under disclosure. Managerially, the findings suggest that firms should prioritize advertising-product fit rather than treating AI identity disclosure as inherently disruptive to user engagement.