The rise of social media has created a unique opportunity for companies to increase brand visibility in non-traditional ways. According to the new Digital in 2017 Global Overview report, between January 2016 and January 2017, the number of active mobile social media users grew by 30% to 581 million users. Companies that appreciate the growing marketing power of social media have turned to social media influencers and celebrities to attract new customers and increase the visibility of their brands. Companies have enlisted influencers, specifically Instagram influencers, to curate creative content – i.e. flatlays, short video clips, and tutorials – to showcase new products and “product favs” to entice the influencer’s followers to their brand. In return, these influencers are receiving gifts, trips, and salaries for these social media endorsements.
With social media and social media marketing being unchartered territory riddled with new challenges arising from the ever-evolving nature of social media, regulators have been somewhat quiet on the subject until now. In April 2017, after receiving complaints about the transparency of Instagram ads and sponsorships, the Federal Trade Commission (FTC) issued 90 letters to influencers “remind[ing] influencers and brands to clearly disclose [their] relationships.” What exactly does it mean to “clearly disclose relationships”? It’s simple! Here are the top three best practices in social media marketing for social media influencers.
1. When to Disclose?
Disclose when there are “material connections.” This means disclose:
- Family or business relationships with the brands you endorse
- Received monetary compensation for your social media posts
- If you received the product you are posting about as a gift
- You are gaining any benefit
- Your connection to a brand or person may affect the credibility of the item being endorsed or advertised on your post
2. How to Disclose?
Clearly and conspicuously disclose relationships to brands when promoting or endorsing products through social media, especially Instagram.
Dos:
- Tag all sponsored posts with a hashtag that clearly states the nature of the post. For instance, #ad or #sponsored.
- Disclose all material connections above the “more” button on Instagram.
- Make sure your disclosure stands out.
- Best practice: make your disclosure tag the first hashtag you use and before the “more” button.
Don’ts:
- Do not use tags likes “#sp,” “Thanks [Brand],” or “#partner” in an Instagram post.
- If you are using multiple hashtags, do not bury your disclosure tags amongst the other tags you are using.
- If you have a long post, do not place your disclosure tag at the end.
3. When in doubt disclose it out!
Typically, FTC violations carry hefty civil penalties for advertisement violations. So, it is in your best interest to err on the side of caution and protect yourself by disclosing connections that confer some type of benefit upon you or any relationship that will affect the weight of your credibility, especially if you are a popular influencer earning a substantial amount of money. After all, the last thing you want is for regulators to make an example out of you.
I do believe these have broad applicability to other forms of social media like Twitter, Facebook, and, even, SnapChat due to similar characteristics and capabilities. So, if you are using any one of these platforms to advertise, I recommend following these practices and visiting the FTC website for further guidance.
Please note nothing in this article constitutes legal advice. For more information about social media advertising, please check out the FTC’s press release and Endorsement Guides.
