Influencer Ad Transparency Now Seen as a Strength
Influencer marketing is evolving as new research reveals that ad transparency is no longer a barrier to engagement. Contrary to longstanding beliefs, clear ad disclosure not only improves trust but also maintains, and in some cases enhances, audience interaction. The Advertising Standards Authority (ASA) and the Influencer Marketing Trade Body (IMTB) conducted extensive studies showing consumers prefer influencers to be upfront about paid content.
According to the ASA’s Influencer Marketing Disclosure Report, which analyzed 1,900 UK participants and 30 influencer posts, 80% of consumers want clear identification when content is advertising. Labels such as ‘ad’, ‘#ad’, ‘paid partnership’, and ‘commission paid’ were found to be the most effective. In contrast, vague terms like ‘#gifted’ and ‘#thanks’ ranked lowest for clarity.
Clarity Over Cleverness in Labeling
The report emphasizes that labels prominently placed within the content or at the beginning of captions are the most transparent. Despite this, only about half of viewers could confidently identify influencer posts as advertisements. More than a quarter failed to recognize them as ads altogether, with traditional brand ads being more easily identifiable than influencer content.
The ASA’s Kam Atwal highlighted that the digital landscape has changed significantly since their last major report in 2019. “TikTok was virtually unknown back then,” she noted. Now, platforms like TikTok and Instagram dominate, and audiences are more adept at spotting inauthentic content. “When it’s not authentic, they feel it,” added Nick Baklanov, marketing intelligence analyst at HypeAuditor.
Trust and Authenticity Drive Engagement
Today’s consumers, particularly younger audiences, report following influencers for genuine product recommendations. This shift underscores the importance of trust. “Audiences are much more likely to engage with creators that they feel are being honest with them,” said Nicky Baker, ASA’s regulatory projects manager.
However, a significant portion of the study’s sample still questions the value of interacting with influencer posts. Around 43% find it difficult to distinguish between genuine reviews and paid promotions, especially among 13–24-year-olds. Interestingly, 69% of under-45s expect influencer ads on social media, compared to only a third of older audiences.
Performance is Unaffected by Disclosure
Separate findings from IMTB and HypeAuditor reinforce the ASA’s conclusions. Analyzing over 500,000 influencer posts, the research found that clear ad labels like ‘#ad’ did not reduce engagement. In fact, posts with disclosure often saw higher likes and comments. Median likes for labeled posts stood at 153 versus 127 for non-disclosed ones, while median comments were 15 compared to 10.
Baklanov emphasized that transparency acts as a trust signal, especially for creators with large followings. “Disclosure appears to act as a trust signal. Transparency and performance are no longer in conflict,” he said. Scott Guthrie, director-general of the IMTB, added, “Viewers don’t mind creators being paid; they hate being misled.”
Dispelling Myths Around Algorithm Bias
One of the more persistent myths in influencer marketing is that algorithms suppress content with ad disclosures. However, the research debunks this. For influencers with over a million followers, disclosed posts reached an average of 241,194 users compared to 133,576 for non-disclosed ones. Although the reach gap narrows with smaller influencers, the trend remains consistent.
Guthrie believes this data will help “mythbust” long-standing misconceptions and encourage greater transparency. “We’ve removed that last resistance to change,” he said, adding that the industry must now see disclosure as a strategy, not a hindrance.
A Call for Industry-Wide Responsibility
Both the ASA and IMTB stress that responsibility for transparent influencer marketing doesn’t lie solely with creators. Agencies, advertisers, and platforms must also play their part. The IMTB relaunched its Influencer Marketing Code of Conduct with ISBA in 2023 to promote accountability across the industry.
Looking ahead, Guthrie sees proper labeling not just as a compliance measure but as a growth opportunity. “Ads need to be obviously identifiable. It’s a win-win—building trust without sacrificing engagement,” he said.
Training and Future Regulation
The ASA is currently updating its ‘Influencers’ Guide to Making Clear That Ads Are Ads’. The new findings will shape future training materials for influencers, brands, and agencies. ASA’s Ed Senior reported that the influencer guidelines were the most-read document of 2024, indicating high industry interest.
While sanctions exist for repeat offenders—including public naming and targeted ad campaigns—the ASA prefers education over punishment. Their AI-based Active Ad Monitoring system continues to revolutionize how influencer ads are tracked and regulated.
Despite notable progress, Baker acknowledges that some areas still lack awareness. However, she remains optimistic: “The industry is in a better place than a year ago.” Atwal concludes that the ASA’s work in influencer marketing is “of ongoing strategic importance” and will continue to evolve with the digital landscape.
This article is inspired by content from Original Source. It has been rephrased for originality. Images are credited to the original source.