The Importance of Disclosure in Influencer Marketing: Protecting the Industry’s Reputation

Influencers and digital creators under fire for failing to disclose adverts, damaging industry reputation

A recent European Union study has revealed that a staggering four out of five influencers on social media are not disclosing commercial content within their posts, as required by EU and UK law. This lack of transparency is causing concern within the industry, with experts warning that it could tarnish the reputation of influencer marketing.

Stevie Johnson, Managing Director of influencer marketing agency Disrupt, expressed shock at the findings, stating, “I’m astounded to see that around 80% of influencers are apparently not disclosing commercial content. So much good has been done to tighten up the rules over the last few years that this seems like a backward step and proves that brands – as well as influencers – are getting it wrong when it comes to influencer partnerships.”

The European Commission report, which analyzed 576 influencers across various social media platforms, found that while 97% of them posted commercial content, only 20% clearly indicated that it was advertising. This lack of disclosure goes against EU and UK regulations, which require content creators to clearly label adverts within their posts.

Johnson emphasized the importance of agencies like Disrupt ensuring that all paid content is properly disclosed, in line with advertising standards. He noted that influencers are generally willing to comply with these regulations, as they value authenticity and transparency with their audience.

He also highlighted the potential for audiences to engage with branded content, as long as the collaboration between the influencer and brand is authentic and aligns with the values of both parties and their audience.

The issue of non-disclosure in influencer marketing raises ethical concerns and threatens to undo the progress made in establishing credibility and trust within the industry. It serves as a reminder to both influencers and brands of the importance of transparency and compliance with advertising regulations.