Navigating the Uncharted Risks of Covert Advertising in Influencer Marketing

Abstract

Nowadays one of the more commonly used types of advertisement is through the use of influencers by brands on social media. There is no doubt about social media’s – and therefore the influencers’ – potential to reach a wide range of global consumers. Accordingly, such reach makes this global, newly-emerging group of tastemakers very valuable to brands. However, there is a catch: when content about a product is generated by influencers e.g. on their Instagram account, how do the consumers know whether the influencer genuinely used and liked that product, or whether there is a commercial relationship between the brand and the influencer, and such relationship is the real reason the influencer is posting about that product?

Worth the effort? Comparing different youtube vlog production styles in terms of viewers’ identification, parasocial response, immersion, and enjoyment.

“…Even back then, however, the authors already noticed the emerging entrepreneurial character of YouTube’s vlogging culture, anticipating a steady disruption of the “professional–amateur divide” (Burgess & Green, 2009, p. 104). Several years later, this prediction has become reality: Vloggers who were able to attract large audiences—that is, vlog influencers —have achieved immense financial success, turning vlogs into a legitimate media industry complete with covert advertising (Gürkaynak et al, 2018) and million-dollar sponsorships (Lynch, 2018).…”

Sponsorship Disclosure in Social Media Influencer Marketing: The Algorithmic and Non-Algorithmic Barriers

“…High engagement and interactivity (e.g., comments, likes, and shares) can lead to a higher return on investment for businesses that utilize influencers in social media communications; existing research indicates that the reliability of UGC allows influencers to appear trustworthy and dependable in the eyes of consumers who view influencers as peers or friends (Bladow, 2018; Mai et al, 2022; Martensen et al, 2018). Consequently, promotional or sponsored posts mimic the visual aesthetics of an influencer’s everyday content; as such, it can be difficult for consumers to recognize advertising intention when branded content is produced to promote a paying sponsor (Gürkaynak et al, 2018).…”

“…Despite the intervention of various regulatory bodies resulting in targeted law enforcement and the publication of formalized disclosure guidelines, influencers are still challenged with providing disclosures that are in compliance with applicable laws (Competition Bureau Canada, 2019; Gürkaynak et al, 2018; Langford, 2020). Although many jurisdictions have guidelines for influencers and businesses, prior research concludes that there is a disconnect between regulation and everyday influencer marketing and sponsorship disclosure practices (Bladow, 2018).…”

Is this mine? Psychological ownership and the social media follower

“…Traditional marketing is less effective than it used to be while various studies have found that consumers perceive influencers to be more credible compared to direct communication from the brand itself (Brown and Hayes, 2008;De Veirman et al, 2017;Djafarova and Rushworth, 2017;Gu ¨rkaynak et al, 2018). In a comparison between celebrity and influencers, studies have shown that while both influence consumers' purchase decisions, consumers find influencers more trustworthy and possess more expertise (Djafarova and Rushworth, 2017;Schouten et al, 2019).…”