Influencer Posts: Authentic or Deceptive Endorsements?

London - When we see Brazilian supermodel Gisele on a speedboat in a Chanel advertisement, there is no doubt she was hired to do a job. There aren't many consumers who would think a Chanel campaign would not involve paying those who make it or star in it. Even a Tweet from Kim Kardashian, where she praises the daily usefulness of a hair removal device, will not elicit a surprise to find out she has been paid to endorse the brand. But there are grey areas in new social media arenas such as Instagram, Snapchat and Twitter, whereby 'influencers' are endorsing products, but there is no mention of these influencers receiving remuneration for their posts.

To clarify who constitutes an influencer, the number one criteria, if it is not a celebrity, is followers. An influencer is a person who is well-connected and who is regarded as influential, in-the-know and an opinion-leader; someone who is looked to for advice, direction, and knowledge. A more in-depth analysis could say: an influencer is: “A third party who significantly shapes the customer’s purchasing decision” (Brown & Hayes, 2008) and “has a greater than average reach or impact in a relevant marketplace” (Word of Mouth Marketing Association Handbook).” Translate this into social media, and we are talking bloggers, vloggers, youtubers, and Instagrammers with thousands of loyal followers.

Influencer marketing is the grey area of advertising

Influencer marketing is the new grey area in the advertising arena as brands are trying to connect to consumers via new channels, specifically social media. Influencers are regarded as authentic voices, thereby a strategic marketing choice for brands to reach their followings, which many will have built over long-term postings via their blogs and feeds, garnering a unique voice and attracting an audience. But where is the authenticity when a 'regular' blogger starts to post images of brands and is paid to do so?

Take for example, Utah-based fashion blogger Cara Loren Van Brocklin, who on her blog states she is a wife and mother, but in reality is a social media maven, with a remarkable 669,000 followers on Instagram. In between fashion uploads and family selfies - all of whom are genetically blessed in the handsome department - are more conspicuous posts, such as Cara endorsing a sunscreen product, or championing a certain accessory. There are plenty of hashtags in the post relating to the brand, though none to inform the consumer if it is was a paid-for-post.

Internet advertisers must follow same laws as traditional advertisers

In America, the US Federal Trade Commission is cracking down on social media advertising. According to Reuters, the FTC aims to ensure internet advertisers follow the same laws as traditional advertisers which call for disclose when someone was "compensated to promote or review a product.”

Earlier this year the FTC took action against retailer Lord & Taylor. According to the regulator, "Lord & Taylor paid 50 online fashion 'influencers' to post Instagram pictures of themselves wearing the same paisley dress from the new collection, but failed to disclose they had given each influencer the dress, as well as thousands of dollars, in exchange for their endorsement."

As consumers have shifted from reading periodicals and watching television to surfing the web and perusing social media, companies increasingly rely on so-called influencer marketing campaigns, in which they pay or provide free goods to internet personalities with large followings in exchange for praise of their products online, notes Reuters.

On the FTC's website it states it revised its Endorsement Guides in October 2009 to keep them up-to-date with current marketing techniques, such as blogging and word-of-mouth advertising. The revised Guides point out that marketers using these new techniques are subject to the same truthful advertising laws that other forms of advertising always have been. That means, among other things, that marketers who are compensated to promote or review a product should disclose it.

Paid for posts should be captioned #ad

Influencers who are paid to post product images should caption their promotions with hashtags such as #ad, #sp, and #sponsored. According to Captive8, a Social Management Platform, more than 300,000 sponsored posts on Instagram in July used hashtags like #ad, #sponsored and #sp, up from about 120,000 a year earlier. But this is only the tip of the iceberg.

Influencer marketing may be a new channel for brands to connect with consumers more directly and more organically, however branded content remains branded and not authentic. Perhaps the followers should be questioning the authenticity of their influencers before they click on 'like.'

Photo credit: Chanel campaign, Cara Loren Van Brocklin Instagram