Influencer advertising or marketing is an increasing popular method used by companies to advertise their brand or products through the social media platforms of “influencers”.
Generally speaking, an influencer is someone who has a substantial following and is able to influence the purchasing decisions and lifestyle choices of their followers.
Benefits of using an influencer
Using an influencer to promote your products can be a great method of advertising when done correctly. Some of the benefits include:-
- Reaching a larger audience;
- Potentially reaching a more niche audience than other forms of advertising;
- It can be done across multiple social media channels including Instagram, YouTube and TikTok;
- Having a positive affiliation with influencers may encourage sales; and
- It can be cheaper than other methods of advertising.
Points to consider
If you’re considering working with influencers there are a few factors to consider first. There are several methods of using influencers, some companies may send samples of their products in the hope that an influencer will give them a positive review, there is no obligation on the influencer to do this, however, in some circumstances, it can work as a method of free advertising.
The other option is to put a more formal agreement in place with the influencer. Either way, it’s worth considering the following points:-
Affiliation with the influencer
If you’re considering working with an influencer, it’s worth taking the time to research who they are, what they’re about and what their values are. Making sure that you’re vision fits in with their image is crucial, not just for the success of the advertisement, but also to make sure you’re not working with anyone that’s going to be detrimental to your reputation. You may want to consider if the influencer is somebody who is already known to your industry, and if so, what their reputation is or what they are known for.
Competitors
Influencers are often approached by multiple brands so you may want to restrict what other products they’re advertising. If you’re contracting with an influencer to promote your brand, you don’t want to see that they’re encouraging their followers to buy your competitors products the following week.
Advertising rules
There have been many recent cases where influencers have found themselves in trouble with the Advertising Standard Agency (ASA) for failing to disclose that a post contains an advert or, where competitions haven’t been correctly administered. Not only does this risk fines if the influencer is found to be in breach of the rules, but it can also lead to reputational damage for both the company and the influencer.
Implications of advertising without an agreement
Situations may arise where an influencer advertises products outside of a formal agreement. This may be items that were gifted, or where a post falls outside the scope of a formal agreement.
A recent complaint investigated by the ASA was that an influencer, Emily Canham, had entered into a contract with Jamella Ltd trading as GHD. The agreement required the influencer to produce a TikTok, two Instagram posts and a YouTube video on particular dates. The influencer posted a TikTok that was not approved by Jamella on a date which was different to the date agreed by the company. Although the TikTok video fell outside of the agreement and no compensation was received for it, the ASA still found that it was in breach of CAP Code Rules as it had not indicated that it was an advert.
The ASA have also investigated several posts where influencers have breached advertising rules without having an agreement in place with the advertiser. The company Skinny Tan recently fell under fire from the ASA when it re-posted content from influencers. Although the posts in questions had indicated that they were adverts and that products were gifted, the issue in this circumstance was that the filters used by the influencers in their posts enhanced the look of the tanning product and was found to have given a misleading impression which, again, was a breach of CAP Code Rules.
Putting an agreement in place
As we’ve seen, promoting products through an influencer can be risky. However, these are all risks that can be mitigated by putting a formal agreement in place. Putting an agreement in place can enable a company to have more control over the content that is posted and prevent ASA breaches by:-
- Detailing what posts are expected;
- Setting out any disclosures that should be included to satisfy the ASA;
- Restricting engagements with competing businesses;
- Allowing the company to review and agree any content before it is posted.
Inquiry into influencer culture
Following multiple reports to the ASA and the Competition and Market Authority finding that 75% of influencers buried the relevant disclosures within their posts, Parliament have launched an enquiry into influencer culture to determine whether there is a need for tighter regulations to be introduced. The inquiry considers influencer culture, its impact on popular culture, its association with advertising and consumerism and the arrangements between influencers and advertisers.
The inquiry is open until 7th May 2021 at: https://committees.parliament.uk/submission/#/evidence/428/preamble
If you need any advice and assistance in relation to influencer agreements, whether you’re a business looking to put an influencer agreement in place or an influencer looking to get an agreement reviewed, we’d be happy to discuss how we can help. Contact us here.