Study Finds: Majority of Influencers Neglect to Disclose Advertising Content, Posing Risks for Brands
Influencer marketing has become a lucrative industry, with brands relying on popular social media personalities to promote their products and services. However, a recent study by the European Commission has revealed that a majority of influencers are failing to disclose paid content, putting both themselves and the brands they promote at risk.
According to the study, four in five social media influencers do not disclose their advertising content. This not only violates advertising guidelines but also potentially breaks the law. In the European Union, consumer laws require influencers to be transparent in their posts and provide accurate information about the products or services they are promoting.
The report analyzed the posts of 576 influencers on major social media platforms and uncovered some concerning findings. While 97% of influencers shared posts with commercial content, only 20% consistently disclosed that the content was actually advertising. This lack of transparency raises questions about the authenticity and credibility of influencer endorsements.
Furthermore, 30% of influencers failed to include any company details in their posts, such as email address, company name, postal address, or registration number. This lack of basic information makes it difficult for consumers to verify the legitimacy of the products or services being promoted.
In terms of disclosure methods, 38% of influencers did not utilize platform labels intended for disclosing commercial content, such as the “paid partnership” toggle on Instagram. Instead, they used alternative terms like “collaboration” or “partnership” or expressed gratitude to the partner brand in a generic manner. This vague approach to disclosure can mislead consumers and blur the line between organic content and paid promotions.
It is also concerning that 40% of influencers who promoted their own products or brands did not consistently disclose that their content was advertising. This suggests that some influencers may be intentionally misleading their followers by presenting their own products as unbiased recommendations.
The European Commission has emphasized the importance of transparency in influencer marketing. EU consumer law states that commercial communications must be transparent, and influencers should not mislead consumers with false or untruthful information. They are required to disclose any promotion of products or services that earn them revenues or benefits as advertising activity. Influencers who sell their own products or services are also subject to the same legal obligations as online shops.
The findings of this study highlight the need for stricter regulations and enforcement in the influencer marketing industry. Brands should be cautious when working with influencers and ensure that they are disclosing their advertising content properly. Consumers, on the other hand, should be vigilant and skeptical of influencer endorsements that lack transparency.
In conclusion, the study by the European Commission reveals a concerning lack of disclosure by social media influencers. This poses risks for both brands and consumers, as it undermines trust and transparency in the influencer marketing industry. Stricter regulations and enforcement are necessary to ensure that influencers adhere to advertising guidelines and provide accurate information to consumers.
