In an experiment (N ¼ 99), effects of subtle and prominent online advertising formats,
respectively sponsored content and banner ads, on audience reactions toward the
advertisement are tested. In addition, the role of several persuasion knowledge
elements such as understanding of persuasive intent and ad skepticism in processing
online advertising formats is investigated. Results show that participants find the
sponsored content more informative, more amusing, and less irritating than the banner
ad. With respect to persuasion knowledge, recognition of the advertising format,
understanding of persuasive intent, and ad skepticism are higher for banner ads than for
sponsored content. Furthermore, ad skepticism seems to be strongly related to
perceived advertising value. These new findings show that persuasion knowledge