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TikTok, Instagram, and Money From #Ads for Influencers

CEO of Instagram, Adam Moseri, has just announced that the platform has taken "some important steps to make sure people know when creators are getting paid for their posts" when at the same time TikTok deal affects the majority of marketers' future ad plans. Will the balance of the influencer marketing platforms be completely redefined? Find out more about that here at Brybe!

Instagram Owners are Taking a Closer Look at #Ads of Their Influencers

Adam Moseri, head of Instagram and former director on Facebook, recently announced on his Twitter that this social media platform will do more to ensure influencers properly disclose when they have been incentivized to post. Not too long ago we have explained to you why disclosures are important for influencers and brands – not to mention our recent report about the Federal Trade Commission forcing influencers to disclose all their marketing posts. As you can see, this topic is so "hot" that even the owners and administrators of the biggest platforms are now taking steps to ensure that everything within their websites is happening on par with the law – and we, while being a social media marketplace platform, just have to stay up-to-date with it all on Brybe.

Following an investigation from a U.K. watchdog called the Competition and Markets Authority (CMA), which found Instagram was failing to protect consumers from being misled, the platform has committed to a package of measures to ensure greater transparency between brands, influencers, and consumers. Following the "Undertakings to the Competition and Markets Authority (pursuant to Section 219 of the Enterprise Act 2002 (EA02)) relating to the Consumer Protection from Unfair Trading Regulations 2008" there is plenty of changes that are yet to come – and they are all being introduced to make sure that not a single person using this social media platform will ever be mislead again.

Instagram's new tools, which will be rolled out over the next year, include prompt requiring influencers to confirm whether they have received incentives to promote a product or service before they can publish their post, and new algorithms built to spot potential advertising content. According to the aforementioned watchdog, Instagram's move is "an important behavioral shift" for social media platforms, and “this will make it much harder for people to post an advert on Instagram without labeling it as such".

Below you can find the most important changes that are coming to Instagram in regards to this latest change:

For influencers:

  • Expansion of the “Paid Partnership” tool: The tool, which appears below a user’s name to display the advertiser relationship, will be extended to all users globally. 
  • Pre-post disclosure prompt: Ahead of posting, users will be prompted to confirm whether they have been incentivized in any way to promote a product or service.
  • New algorithms: Instagram has said it will deploy technology and algorithms to assess when users may have not disclosed when their post was sponsored. 

For brands:

  • New tool to understand promotions: Instagram has said it will create a tool to help brands to detect potential advertising content (posts where it appears products are being promoted)  and to request the removal of unauthorized or inadequately labeled posts. The tool will also give advertisers more data (think: conversion and brand-lift metrics) to encourage them to require influencers to disclose their relationships. 

What does that mean to all of us? Well, it depends whether you are a client/user, a brand, or an influencer. The last two groups will just have to follow the aforementioned changes, while every user is going to be ensured that from now on he will never get cheated and mislead again – as not only organizations like the FTC are taking care of that but also the very owners of the biggest platforms themselves. Since here, at Brybe, we follow these rules and respond immediately to all types of reports of violations of any applicable rules and laws, while monitoring the actions of all influencers that are available on our influencer marketplace, we are happy that yet another "player" joins to the "battle for fairness" and we hope that soon all these frauds will be only a thing of the past.

What About the Other Influencer Marketing Platforms?

It may take some time before the other influencer marketing platforms will be as clear about these issues as Instagram – but this does not change the fact that their impact on the whole situation is already visible.

Do you remember how we mentioned the TikTok deal and its potential impact on the balance of the influencer marketing industry? It turns out that the whole situation has consequences much quicker than everyone would think because as according to the latest survey as much as 73% of marketing executives claim that the acquisition of TikTok in the USA by Oracle and Walmart would change their marketing plans and strategies in 2021.

Among the marketers who said the TikTok deal will affect their plans, the most common impacts would be changes in ad products (94%), new consumer behaviors from increased TikTok usage (75%), and new products (38%). In addition, 86% of respondents said they’re concerned the TikTok deal will make Oracle a leader in advertising data, while only 41% said the deal gives Walmart a chance to overtake Amazon in e-commerce. 

Why do we mention this? Well, it is very simple – actually for two reasons. First of all, the new TikTok administration will be on everyone's lips and everybody, including the FTC, will expect them to make a clear statement (as in the case of Instagram) about the fight against unfair advertising of products on this platform (especially since TikTok is mainly aimed at Gen Z, the youngest recipients, which are the easiest to manipulate). The answer from Walmart may or may not come, and no one knows whether these changes will affect TikTok for good or bad. Secondly, if TikTok would actually stay in the United States market, with the rules on Instagram tightened, it may turn out that its market share will increase even more and it will become a kind of "asylum" for free advertising and creative marketing campaigns – in which, however, it is not always so obvious whether it is an ad or just a simple influencer activity.

Summarizing all this, we must say that the next few months in the influencer marketing industry will be very interesting because nobody really knows how the situation will turn out and where the balance point between the biggest players in this "social marketing game" will be. As an influencer marketing platform, it remains for us to monitor the whole situation and make sure that here at, all platforms are available to you – no matter which one of them will prove to be the leader in the next few months or years.