In the recent years, there has been a remarkable growth in Influencer marketing by social media influencers. But several organizations have also criticized this method of advertising for the prospect of sponsored brand endorsements concealed as unpaid posts. Therefore, for preserving the consumers’ privacy and helping them to differentiate between brand endorsements and personal opinions several regulatory agencies have clearly issued the guidelines to explicitly disclose about sponsorship. This study aims to review the past literature on the role of sponsorship disclosure in influencer marketing. Through the analysis it was found that studies in the sponsorship disclosure domain in influencer marketing are flourishing mainly in developed countries. Persuasion knowledge framework is the most explored theory in this domain and researchers have mainly conducted experimental studies. Moreover, the research tries to contribute to the existing knowledge and suggest future research directions.

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Keywords: Influencer Marketing, Social Media, Sponsorship, Consumers’ Privacy, Research Directions.