In December, the Federal Trade Commission updated their guidelines governing native advertisements, and in this process, small changes were made that may have an impact on your upcoming influencer marketing programs. Here, will will provide a recap of current FTC regulations, including a few new policies and the effect they may have on influencers and marketers. But first, let’s chat about the category of native advertisements and why you need to be cautious in compliance with regulations.
Native advertisements are messages promoting a brand, product, or service, presented in a format that resembles surrounding content which is not promotional in nature: news, feature articles, photos, entertainment, etc. Influencer marketing, in most cases, is an excellent example of this. On one hand, native advertising represents innovation that may make ad messaging more palatable for consumers. For instance, ad content on a site people visit to read articles may be less disruptive and annoying if it takes the form of an article rather than an instant-play video or a flashy banner ad. However, presenting ads in this format increases the risk that consumers will not recognize them as ads, which goes against the FTC’s Truth in Advertising principles. To avoid this confusion, the FTC requires that native advertisements must be disclosed as such. (Click here for the full list of guidelines).
Here are the most relevant rules as they pertain to influencer marketing:
- If you’re being compensated for an endorsement, either with money or in exchange for complimentary products or services, your content will fall into the category of native advertising and must be expressly disclosed. (Click here for more about endorsement guidelines).
- Disclosures must stand out so that consumers can easily see or hear them, and must be made in language that can be easily understood by the audience. Terms that are likely to be understood include “ad”, “advertisement”, “sponsored content”, or something similar. As of December 2015, it is no longer acceptable for marketers or influencers to refer to such content as “promoted content” or “promoted stories”, as these terms are vague and may be misleading.
- The most recent guidelines state that disclosure should be given “as close as possible” to the ad content. For instance, if you’re a food blogger writing a sponsored recipe post, the most appropriate place for the disclosure may not be at the beginning or the end of your post, but rather, near the point where you first mention the brand or product you’re being compensated to endorse.
- Disclosures should be formatted such that they will be shown even if the native content is shared or reused by someone other than the original publisher in non-paid search results, social media, email, or other media.
- In multimedia native advertisements, disclosure should be presented to consumers before they receive the advertising message.
As a leader in the influencer marketing space, remember: integrity is your saving grace. Undisclosed influencer content embodies every negative quality that drove consumer trust out of traditional advertising in the first place. It all comes down to this: influencer marketing is about empowering consumers to engage with brand messaging in a way that is comfortable and valuable for them. Sneaky, dishonest, or underhanded ad messaging doesn’t further this goal, so always be true to your own opinions and experience when creating content around a product or service, and always disclose sponsored content appropriately.
If you have questions about setting up your influencer campaigns or with FTC compliance, don’t hesitate to contact us!
