3 minute read
UNDER THE INFLUENCE
Wynn Williams on what advertisers need to know about influencer marketing
Using influencers or brand ambassadors to promote your business? Advertising Standards Authority (ASA) publishes guidance on its website, which clarifies its expectations around influencer advertising. This aims to increase transparency and provide consumers with clearer identification of ads in influencer content. While the guidance is not binding on the ASA’s decision-making boards, it is intended to help advertisers and influencers comply with the current Advertising Standards Code, which took effect from 1 February 2019.
This guidance note arose out of the ASA’s handling of complaints regarding influencer Simone Anderson. In 2020, the Advertising Standards Complaints Board upheld four complaints about Anderson’s posts on Instagram, finding her posts were adverts, but were not clearly marked as such, potentially misleading audiences about her relationship with the advertiser. This was the first ASA decision involving substantive issues related to influencer advertising, leading the ASA to issue further guidance.
The guidance defines an influencer as someone who influences their audience’s choices, opinions or behaviours and earns income from their content. This broad definition includes most social media users but hinges on income generation, which could take the form of payments, gifts, free products, event tickets or other compensation.
Advertisers and influencers must ensure their adverts comply with the Code. The Code defines an advert as any message controlled by an advertiser with the intent to influence audience choices or opinions. Rule 2(a) of the Code states: “Advertisements must be identified as such.” This rule sets a high standard, requiring influencers to take steps to identify their advertisement content appropriately.
Consumers may naturally know they are seeing adverts. However, if there’s any doubt about a post’s nature, influencers are advised to label their posts with “Ad,” “Advert” or “Advertisement” (either with or without hashtags). The label must be prominent, clear and easy to spot. While additional labels are allowed, they cannot replace the required identifiers.
For clarity, influencers must label posts featuring gifted products or services as advertisements, regardless of whether the advertiser requires the influencer to post, or has any control over, the content. This approach aims to cover all forms of compensation, making it clear to audiences when influencers have received something of value.
Responsibility for compliance falls on all parties involved, so advertisers and influencers are both accountable under the Code. To manage this effectively, advertisers are advised to establish formal agreements with influencers, clearly outlining each party’s obligations and expectations, to reduce the risk of unintentional brand damage.
For influencers or brands using influencer marketing, seeking expert guidance can be beneficial to navigate the ASA’s guidance and maintain compliance with the Code.
Advertiser Info
Wynn Williams
www.wynnwilliams.co.nz
Contact
Katrina Hammon
09 300 2647
021 221 8847
katrina.hammon@wynnwilliams.co.nz
