The Importance of Disclosure in Influencer Marketing
Influencers exist on social media to promote a product, service, or idea through their own personal content and experiences. Influencer marketing is popular among companies that are looking to reach new audiences, create more visibility for their brand, and increase sales. While influencer marketing can be an effective way to market products to consumers, it is also important to remember the importance of disclosure. Disclosure is often necessary to comply with truth in advertising principles and to keep the followers of influencers informed and protected.
What is Disclosure?
Disclosure refers to the practice of crediting and/or revealing whether or promotion for a product, service, or idea is sponsored. Influencers must disclose when a post or video is sponsored by a brand and include a hashtag and/or a statement when appropriate. Disclosure enables consumers to know that the influencer is being compensated to promote the product, service, or idea.
Why is Disclosure Important in Influencer Marketing?
Disclosure is important in the influencer marketing industry for the following reasons:
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Ensures brand transparency: Disclosure provides transparency between the brand, the influencer, and the audiences. When an influencer is transparent about their relationship with a brand, audiences are more likely to trust the influencer and the brand. The action of disclosing also signals that the influencer and the brand have an agreement, therefore eliminating potential misunderstandings
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Aligns with truth in advertising principles: Disclosing the nature of the relationship between the influencer and the brand aligns with truth in advertising principles. Disclosure creates trust and integrity between both the brand and the influencer, but also between the influencer and their followers.
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Saves brands from consequences: Disclosure is necessary to stay on the right side of the law and save brands from potential fines. The Federal Trade Commission regulates how influencers can promote products and services on social media in the US, and companies should stay aware of these regulations when working with influencers.
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Protects influencers and their followers: Disclosure helps to protect both influencers and their followers from potential harm, such as false advertising. Disclosing the relationship between the brand and the influencer protects the influencer’s reputation, as well as the reputation of the brand that they are promoting.
Best Practices for Disclosure
In order to ensure that the disclosure process runs smoothly, here are some best practices that influencers and brands should follow:
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Make disclosure clear and prominent: Disclosure should be revealed early on in the post or video, ensuring that audiences do not miss the disclosure due to its prominence. Hashtags such as #ad, #sponsored, and #BrandPartner can be used to make the disclosure more clear.
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Be consistent with disclosure: Brands and influencers should use the same wording for a disclosure across all posts and videos. Consistent disclosures make it easier for audiences to notice, and creates a more professional collaboration.
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Consider the platform: Different social media platforms have different requirements for disclosure. For example, YouTube requires influencers to include short disclosure in their description box within the first few lines. Disclosure for Instagram, Twitter, and other social media platforms should also follow specific requirements.
It is important for brands and influencers to understand the importance of disclosure when working with influencer marketing. Disclosure ensures transparency between the brand and the influencer, creates trust between the influencer and their followers, can save brands from consequences, protect both the influencer and their followers, and should be done with best practices in mind. By adhering to these practices, brands and influencers can ensure that their influencer marketing strategy is successful.