What's Happening?
The Advertising Standards Authority (ASA) has released a report emphasizing the importance of clear advertising labels in influencer marketing. According to the report, 80% of people prefer influencers to clearly state when content is advertising, and 70% want ad labels to be visible upfront. The ASA's findings support its existing rules that require influencers to label advertising content clearly. The report highlights that straightforward labels like 'ad' or '#ad' are effective, while labels such as '#gifted' and '#thanks' are less clear. The ASA plans to update its 'Influencers’ Guide to Making Clear That Ads Are Ads' to reflect these findings. Shahriar Coupal, director of advertising policy and practice at ASA, noted that unclear disclosure
risks eroding the trust influencers have built with their audiences.
Why It's Important?
This development is significant as it addresses the growing role of influencers in marketing and the need for transparency to maintain consumer trust. As influencers become key players in how products and services are discovered, clear advertising disclosure is crucial to prevent misleading consumers. The ASA's report, along with research from the Influencer Marketing Trade Body (IMTB), suggests that proper ad disclosure does not negatively impact engagement, countering a common misconception among creators. This could lead to higher compliance with advertising standards and foster a more trustworthy influencer marketing environment, benefiting both consumers and brands.
What's Next?
The ASA's planned update to its guidance for influencers is expected to provide clearer instructions on how to label advertising content effectively. This could lead to increased compliance and potentially influence global standards in influencer marketing. Brands, agencies, and influencers may need to adjust their practices to align with these updated guidelines. The ongoing dialogue between regulatory bodies and the influencer industry suggests a continued focus on transparency and trust, which could shape future marketing strategies and consumer protection policies.
