Everything You Should know about influencer marketing Fraud and Transparency(II)

Hi, dear everyone. Welcome to part two of Everything You Should know about influencer marketing Fraud and Transparency.

In the previous article, NoxInfluencer brought you to the topic of influencer fraud in influencer marketing. In influencer marketing, still a barbarous land, it is easy for brands to meet this risk if making an unscrupulous influencer marketing plan. Even influencer marketing platforms or agencies can’t 100 % avoid this.

NoxInfluencer, as a world-leading AI-powered influencer marketing platform, features comprehensive influencer stats analytic tools and all-around marketing service, guaranteeing safe and high-returning influencer marketing campaigns. NoxInfluencer helps brands optimize influencer marketing performance and influencers to monetize their channel influence.

However, there is another hazard in addition to influencer fraud. Hidden marketing.

In this article, NoxInfluencer is going to discuss the transparency issue in influencers’ marketing behaviors, which has been ignored by most influencers and even influencers marketing platforms or agencies.

Keep Your Influencer Marketing Transparent

As we said in the previous article, influencer marketing is still a wild west without mature and effective codes to standardize marketing behaviors between brands and influencers. We all know marketing is essentially a kind of economic behavior, which is required supervision by regulators in principle. It is inevitable to see many economic transactions involved in influencer marketing, labor rewards, tax issues, ethicality related to consumer protection, etc. One of these issues, hidden marketing, is a serious problem considered as a breach of consumer protection.

In 2019, Federal Trade Commission (FTC) launched Disclosure 101 for Social Media Influencers to secure consumers’ rights when reached by influencer marketing. It requires influencers to disclose their advertisement in their content, keeping their influencer marketing activities transparent enough to a massive audience. Besides, FTC has made it clear in Endorsement Guides that any “material” implication between endorsers and advertisers, influencers in our case, should be clearly disclosed. This material consideration could either be monetary in nature, or in kind.

Why Hidden Marketing Unallowable and Why Transparency Matters

Consumer Protection

Aiming to protect consumers in influencer marketing campaigns, influencers should make the sponsored content distinguished from other naturally-created content. All promotion content must be identifiable to followers.

For instance, in most countries, Instagrammers are required to add a “#ad” in the caption of a promotion post. Brands need to know their affiliation with influencers should adhere to these rules. As we can see on YouTube, viewers would be reminded that they are watching a video including promotional content, a measure to protect consumers.

Maintaining Nice Relationship Among Consumers, Influencers, and Brands

Solid trust between influencers and followers is seen as the best weapon for marketers to leverage to do marketing. When this trusted relationship is damaged, marketing by influencers won’t work. Nevertheless, sometimes influencer marketing itself would damage this relationship, like hidden marketing by influencers.

Influencers must make it clear to the audience that they are doing advertising. They shouldn’t make their sponsored content like their personal recommendation and a naturally-created post. Otherwise, they are lying to audience.

When content creators, like YouTubers and Instagrammers, hide their marketing behaviors from their subscribers and don’t manage to disclose that their content is sponsored with an aim of business promotion, they are breaching consumer protection laws. Transparent cooperation relationship between influencers and brands will make them more honest, maintaining authenticity. Hidden marketing will make both brands and influencers will suffer from the backlash from the public.

Tax Issues in Influencers Marketing

A disclosure that influencers are getting paid can ensure that their rewards are taxed. Promotion-labeled content shows the transactions involved will comply with related tax laws.

By launching cooperation with influencers on NoxInfluencer, all procedures are completed online, including contract signing and promotion fee payment. All tax items will be displayed in the system to secure every step of transaction to be legitimate.

Conclusion

There is always a necessity to use a great influencer platform or cooperating with agencies to avoid influencer fraud. And it’s the responsibility of both brands and influencers to comply with related laws, like keeping influencer marketing campaigns transparent. It’s highly advisable for brands to monitoring influencers’ marketing on platforms.

Thanks for reading. Until next time.

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