Will legislation wreck paid influencer marketing?

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26 Apr Will legislation wreck paid influencer marketing?

Federal Trade Commission tells influencers and brands to clearly show the relationship when promoting or endorsing products through Instagram. More than 90 letters were sent out reminding influencers and marketers who failed to adequately demonstrate the fact that they endorsing a product and in return are getting paid.
dear-influencer1In the letters the Federal Trade commission gave a notice for celebrities, athletes, and other influencers to follow FTC’s Endorsements Guides as detailed as not putting the sponsor message below the „more” Instagram button, not hiding it as „ThanksBrand” and no vaguely disclosing like #sp or #partner hidden deeply in the forest of hashtags.

What about the Danish market?

Although new actions were taken by the American Federal Trade Commission, it seems to be a worldwide tendency. The Danish influence marketing rules are getting tightened up too. Here are some fundamental requirements by Forbrugerombudsmanden” for how to work with influencers without getting in trouble:

If a product is sent to an influencer, the reference needs to be marked as advertising

The new marketing practices forbid any marketing agreement to be undisclosed. Sharing a product picture through a private person’s blog – in this case Instagram – its just that, marketing on a marketing platform. Sending a product to an influencer indicates the fact that the sender has a commercial intent – even if the brand does not directly encourage the influencer to mention it.

Mark it clearly

The social media is evidently getting in the focus of Forbrugerombudsmanden. As an example Ford Denmark was fined due to breaching marketing act §4 when collaborated with 11 well-known celebrities on Instagram. During their ambassador  program only #FordDenmark was used, which according to Forbrugerombudsmanden it’s not enough and it should always be clear that it is advertising. On Instagram the sufficient way to do it is writing ”reklame”, ”annonce”, ”betalt indlæg” or ”sponsoreret indlæg” at the beginning of the text.

The new marketing law will be implemented on the 1st of July 2017 which will probably change the influence marketing game significantly.

Any other way?

What if instead of tackling the rules and searching for grey areas, brands may simply move away from promoted product endorsement and utilize their earned user-generated content (UGC)? Well, unpaid and non-manipulated content from existing customers can only lead to honest and authentic content strategy. Integrating UGC in promotion mix is not always easy and brands might need to redesign their promotion mix. The bottom line for UGC is to focus on retelling the customers’ experiences and stories to new potential customers. Basically it’s sharing the authentic voice of the individuals. Future customers will recognize this and the authenticity of the unique content can be the ultimate key to getting the customers to purchase..

With the help of Ducksuite’s platform brands can easily track and integrate UGC into their webpage without violating any rules and use the earned content to drive customer loyalty and sales.

UGC is a powerful tool, so the question is no longer if you should do it – but how to do it and how you can maximize the impact of this content. Still a bit stuck on how to curate earned content using your audience for your brand? Request a demo on the site and we will answer all your questions