Do Influencers Need To Tell Audiences They’re Getting Paid?

by MR Magazine Staff

In 2018, 19% of all U.S. consumers — including 36% of those aged under 25 — purchased a product or service because a social media influencer recommended it. Unsurprisingly, U.S. companies have taken note: 75% relied on influencer marketing in 2018 and 92% of marketing managers declared their belief in its effectiveness. The Federal Trade Commission (FTC) has taken note. Concerned that commercial interests would drive peer-to-peer interactions, the FTC has since 2017 “invited” companies and influencers, with its“endorsement guides,” to disclose brand relationships, displaying the hashtag #ad or the mention “paid partnership” in a prominent position. Many companies are pushing back. Read more at Harvard Business Review.