This article summarises “Fake news, real problems for brands: The Impact of Content Truthfulness and Source Credibility on Consumers' Behavioral Intentions toward the Advertised Brands” by Marco Visentin, Gabriele Pizzi and Marco Pichierri, published in the Journal of Interactive Marketing, (2019) Volume 45 pp. 99 – 112.
One negative byproduct of the social media revolution is the proliferation of so-called “fake news,” generally understood as intentionally false, realistic and fabricated stories which can potentially be verified. With the web's low barriers to entry, producers of fake news have economic incentives to craft deceptive content. Sensationalist headlines can easily generate clicks and traffic that increase advertising volume and, by extension, revenues.
Researchers and practitioners need to understand the consequences of this phenomenon on marketing activities, but surprisingly, no marketing study to date has analyzed the effect of fake news on consumers' evaluations of a brand advertised on the same webpage. To ﬁll this gap, this study empirically investigated whether individuals' perceptions of fake news transfer to an adjacent brand advertisement.