London – When we see Brazilian
supermodel Gisele on a speedboat in a Chanel advertisement, there is no
doubt she was hired to do a job. There aren’t many consumers who would
think a Chanel campaign would not involve paying those who make it or star
in it. Even a Tweet from Kim Kardashian, where she praises the daily
usefulness of a hair removal device, will not elicit a surprise to find out
she has been paid to endorse the brand. But there are grey areas in new
social media arenas such as Instagram, Snapchat and Twitter, whereby
‘influencers’ are endorsing products, but there is no mention of these
influencers receiving remuneration for their posts.
To clarify who constitutes an influencer, the number one criteria, if it is
not a celebrity, is followers. An influencer is a person who is
well-connected and who is regarded as influential, in-the-know and an
opinion-leader; someone who is looked to for advice, direction, and
knowledge. A more in-depth analysis could say: an influencer is: “A third
party who significantly shapes the customer’s purchasing decision” (Brown &
Hayes, 2008) and “has a greater than average reach or impact in a relevant
marketplace” (Word of Mouth Marketing Association Handbook).” Translate
this into social media, and we are talking bloggers, vloggers, youtubers,
and Instagrammers with thousands of loyal followers.
Influencer marketing is the new grey area in the advertising arena as
brands are trying to connect to consumers via new channels, specifically
social media. Influencers are regarded as authentic voices, thereby a
strategic marketing choice for brands to reach their followings, which many
will have built over long-term postings via their blogs and feeds,
garnering a unique voice and attracting an audience. But where is the
authenticity when a ‘regular’ blogger starts to post images of brands and
is paid to do so?
Take for example, Utah-based fashion blogger Cara Loren Van Brocklin, who
on her blog states she is a wife and mother, but in reality is a social
media maven, with a remarkable 669,000 followers on Instagram. In between
fashion uploads and family selfies – all of whom are genetically blessed in
the handsome department – are more conspicuous posts, such as Cara
endorsing a sunscreen product, or championing a certain accessory. There
are plenty of hashtags in the post relating to the brand, though none to
inform the consumer if it is was a paid-for-post.
In America, the US Federal Trade Commission is cracking down on social
media advertising. According to Reuters, the FTC aims to ensure internet
advertisers follow the same laws as traditional advertisers which call for
disclose when someone was “compensated to promote or review a product.”
Earlier this year the FTC took action against retailer Lord & Taylor.
According to the regulator, “Lord & Taylor paid 50 online fashion
‘influencers’ to post Instagram pictures of themselves wearing the same
paisley dress from the new collection, but failed to disclose they had
given each influencer the dress, as well as thousands of dollars, in
exchange for their endorsement.”
As consumers have shifted from reading periodicals and watching television
to surfing the web and perusing social media, companies increasingly rely
on so-called influencer marketing campaigns, in which they pay or provide
free goods to internet personalities with large followings in exchange for
praise of their products online, notes Reuters.
On the FTC’s website it states it revised its Endorsement Guides in October
2009 to keep them up-to-date with current marketing techniques, such as
blogging and word-of-mouth advertising. The revised Guides point out that
marketers using these new techniques are subject to the same truthful
advertising laws that other forms of advertising always have been. That
means, among other things, that marketers who are compensated to promote or
review a product should disclose it.
Influencers who are paid to post product images should caption their
promotions with hashtags such as #ad, #sp, and #sponsored. According to
Captive8, a Social Management Platform, more than 300,000 sponsored posts
on Instagram in July used hashtags like #ad, #sponsored and #sp, up from
about 120,000 a year earlier. But this is only the tip of the iceberg.
Influencer marketing may be a new channel for brands to connect with
consumers more directly and more organically, however branded content
remains branded and not authentic. Perhaps the followers should be
questioning the authenticity of their influencers before they click on
‘like.’
Photo credit: Chanel campaign, Cara Loren Van Brocklin Instagram