The Trouble with Influencer Marketing in Social Media

Sam Spinale

ss730219@ohio.edu

If you have ever scrolled through social media and saw an influencer promoting a new product, but you weren't sure if it was an advertisement, you're not alone. It has been so hard to tell whether or not a product promotion is something an influencer likes or if it's a paid advertisement. This confusion is starting to irritate many users on social media. These users want influencers with paid promotions to be transparent about which posts are advertisements and which are not.

Source: DesignRush

What is Influencer Marketing?

To know what influencer marketing is, we should understand the discontent behind the lack of transparency within influencer marketing. According to Sprout Social, influencer marketing is "a type of social media marketing that uses endorsements and product mentions from influencers- individuals who have a dedicated social following and are viewed as experts within their niche."

Social media influencers can get paid thousands of dollars for one post about a company's product. The current user frustration comes from a lack of disclosing that the paid endorsement is an advertisement.

Are Influencers Breaking FTC Guidelines?

While most influencers in the business for a while know the consequences of lack of transparency in advertisements, some newer "micro-influencers" do not and don't disclose their incentives behind the post, according to Ad Age. "When it comes to influencer marketing, the FTC's rules state that influencers must reveal their relationships with brands within their posts. In addition, followers need to understand whether what they're seeing is an ad or organic post by an influencer", says Forbes.

Forbes also says that breaking these rules can lead to penalties, fines, and legal fees. For example, in 2016, Machinima, a video network, "settled with the FTC over undisclosed payments to online influencers." In addition, in 2014, an advertising agency working for Sony got in trouble when they told their employees to promote a gaming console on Twitter "without disclosing their relationship to the agency or Sony," says Forbes.

Source: tubefilter

Who is the Watchdog for Social Media Advertisements?

Many users of different social media platforms are starting to question the product placements they see online regularly. As a result, everyday users are starting to be watchdogs; the Advertising Standards Authority (ASA) is cracking down on advertisements that lack transparency. According to Marketing Week, "the Advertising Standards Authority is taking out Instagram ads exposing rule-breaking influencers who have consistently failed to disclose ads on their accounts, despite explicit warnings." The rules state that any advertisement on social media must be labeled. For example, include the word "ad" in pictures or post captions. According to Marketing Week, six influencers who continuously failed to abide by the rules are Francesca Allen, Jess Gale, Eva Gale, Belle Hassan, Jodie Marsh, and Anna Vakili. Those influencers have even been named by an AAA's website that lists influencers who failed to follow the rules.