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Influencer Marketing 101

The term “influencer” is so popular these days. There are all kinds of influencers and anyone who meets certain criteria can become an influencer. It is usually dependent on your social media presence, status, knowledge on a topic or following.

Who is an Influencer? A person who is able to affect the purchasing decisions of others because of their status or knowledge in a particular area. They usually have a large following who trust or respect their views hence their ability to “influence”.

Why do brands care? Influencer Marketing has in many ways surpassed traditional marketing because let’s face it, most people are more engaged on social media and rely on the opinions of others when making a purchase. Brands have realized that marketing on social media is imperative to marketing and promoting their brand hence they engage the services of influencers to endorse their products and services.

What is an endorsement? An endorsement is any advertising message (verbal or non-verbal) that consumers are likely to believe reflects the views of a person other than the sponsoring advertiser, even if the views expressed by that person are identical to those of the sponsoring advertiser. The FTC enforces false advertising laws against “unfair or deceptive acts or practices in or affecting commerce”.

The following practices can be classified as advertising.

1. Posts mentioning third party products or services

2. Posts mentioning your own product or company

3. Affiliate links

4. Discount codes

5. Native Advertising

6. Prize Promotions

An influencer must always disclose any relationship they have with the sponsoring advertiser. The disclosure must be truthful, clear and conspicuous. The penalty of violating these guidelines implemented by the FTC can be quite severe failure to adhere to these rules pose consequences not just for the influencer but for the sponsoring advertiser and/or agency. A company can mitigate its risks when hiring talent by implementing policies, monitoring influencer activities, entering agreements and training employees and agency partners on proper disclosures.

For Influencers – We assist influencers in reviewing and negotiating agreements with brands.

For Companies – We assist companies in reviewing and drafting talent agreements, social media policies and delivering training to your staff to ensure FTC compliance and mitigate risks to your brand.

Contact us today

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