The mediating role of advertising literacy and the moderating influence of parental mediation on how children of different ages react to brand placements

This study investigates the role of advertising literacy in how children of different ages respond to brand placement and how parental advertising mediation strategies can attenuate advertising effects. The results of a cross‐sectional study among 180 children under 12 and their parents show that older children (10 to 11 years) are better able to detect the commercial intent and the source of brand placement compared to the younger children (7 to 8 years). However, parental advertising mediation appears to increase (instead of decrease) brand attitudes for the younger children, whereas it has no significant effect on brand attitudes of the older children. Practical implications of the study are discussed.