Influencer marketing is winning a bigger slice of brands’ budgets. But
on Instagram, it’s not always obvious what’s an ad, because so many
popular Instagrammers are simply not labeling them as such.
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A brand or an influencer might justify not disclosing an ad as a way
of avoiding punishment by platform algorithms, which limit the reach of
content that’s labelled as sponsored. (Others use tricks like watermarks
within videos to avoid this.) But in the long run, it’s in the interest
of both brands and influencers to disclose the arrangement, experts
say.
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