by Google
In the dynamic environment of social networks, which is constantly changing and creating space for new, more modern marketing approaches, it is sometimes difficult to distinguish what is advertising and what is not. The problem of recognizing unlabeled advertising is also confirmed by a survey conducted by Ipsos, a global leader in market research. That is why in this article we will explain why it is important to label advertising on social networks. Let's start from the beginning.
• By not labeling your ads, you are misleading your fans
• You may lose the trust of your fans and your community
• Unlabeled advertising violates the law
• You risk a heavy fine for unlabeled advertising
BY NOT LABELING ADVERTISING, YOU ARE MISLING YOUR FANS
Not every social media user finds it easy to recognize advertising on the Internet, which is also confirmed by British research. Last year, Ipsos conducted a market survey in the UK to find out how well consumers can identify advertising content on social media. The survey results showed that: 1. On average, only 32% of respondents aged 18-64 identified influencer ads with complete confidence and ease. 2. Among the 8 different influencer ads studied, only 41% of respondents identified the ads without any problems and with complete certainty, while all ads in the survey were tagged with, for example, #ad.
3. The lowest scores in identification were ads that were not tagged at all.
4. If the tag, for example, #ad was in the middle of hashtags, it caused confusion among respondents.
What does this mean? Thanks to British research, we can say with certainty that it is not easy for users to recognize ads on social networks, and therefore they should always be visibly marked.
YOU CAN LOSE THE TRUST OF YOUR FANS AND LOSE THE COMMUNITY
Another very important point is transparency and the code of ethics for advertising, which both companies and influencers should adhere to. As creators, you build a much more intimate and personal relationship with the community than companies do with customers, and this is your great advantage and added value. Don't let your lack of transparency ruin your relationship with your community.
Fans trust you and are willing to buy the products and services you recommend. With such strong influence comes responsibility, which is whyit's very important to be honest with your fans, value their trust and support, and approach all advertising ethically for example, in the form of social media advertising labeling.
UNLABELED ADVERTISING VIOLATES THE LAW
Let's do a quick legal window. Social networks like Instagram also fall under Slovak legislation, within which the two most important laws for us are the Advertising Act and the Consumer Protection Act. If you are an influencer and are involved in commercial collaborations, you should be familiar with these two laws.
Let's look at the Consumer Protection Act, for example. This law, among other things, prohibits unfair business practices, which are described in more detail directly in the Collection of Laws of the Slovak Republic. These include hidden advertising, which is defined as: “The use of editorial space in the media to promote a product when the seller has paid for sales promotion, without this being explained in the content or by image or sound clearly identifiable to the consumer.” (Collection of Laws of the Slovak Republic, § 7 Unfair Business Practices)
So if a situation arises where you do not mark an advertisement on Instagram with an image or sound, it can be evaluated as hidden advertising, which is defined in the Collection of Laws of the Slovak Republic as an unfair business practice and there is a violation of the Consumer Protection Act. Both the advertiser (e.g. company, agency) and the intermediary (influencer) are legally liable for violating the law. The legal consequence of violating the law in this case is a fine.
Despite the fact that social networks fall under our legislation and sanctions can be imposed for violating it, we still see room for a more specific and clearer definition of the rules for publishing and labeling advertisements on social networks.
But regardless of the shortcomings, it is extremely important to comply with existing laws, properly label advertisements, and avoid practices that could be in any way dubious or suspicious.
YOU MAY BE RISED BY A HEAVY FINE FOR UNLABELED ADVERTISING
Although social networks may sometimes seem like an internet place where everything is allowed, this is not the case at all. Instagram is subject to Slovak legislation in the field of advertising.
This means that in the event of failure to label an advertisement and violation of the Advertising Act or the Consumer Protection Act, the client (company) and the intermediary (influencer) may be fined up to €66,400, and for repeated violations of obligations within 12 months, the fine may rise to €166,000. Which, let's be honest, can be a liquidation sum for an influencer. However, you can easily avoid a high fine by labeling your ad.
HOW TO PROPERLY TAG AN AD ON INSTAGRAM?
HOW TO PROPERLY TAG AN AD ON YOUTUBE?
Now you know at least 3 reasons why labeling your ads on social networks is important. No matter which social network you work on, labeling your collaboration will only take a few seconds of your time, but you can help increase your own credibility, but most importantly, you won't break the law and mislead your fans. Let us know if anything in the article surprised you, and if you found this blog post helpful, help us spread the word by sharing it.
