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What Marketers Can Learn From The Warner Bros. FTC Case
Sponsored social media posts have a profound impact on consumer habits, as evidenced by the fact that 74% of consumers now rely on social media when making purchasing decisions. As a result, influencer marketing is one of the most rapidly growing sectors of the advertising industry and is at least a $1 billion market on Instagram alone.
But the effect that social media influencers can have on their audiences comes with a responsibility to properly disclosure sponsored content. In the past year, the Federal Trade Commission (FTC) has been cracking down on influencers and brands who are not following its guidelines for disclosures, which play an important role in protecting consumers from deceptive advertising.
Warner Bros. was one of the first companies examined under FTC scrutiny for proper disclosures on social media, but improper disclosure remains a serious problem. Over 90% of sponsored posts from top celebrities on Instagram violate FTC disclosure guidelines, making transparency on the platform a major problem. The good news is that marketers can learn a number of key lessons from the mistakes of companies like Warner Bros. In this case study, we’ll take a closer look at why Warner Bros. ran into trouble with the FTC and how marketers can avoid ending up in a similar situation.
in blog, Influencer Marketing, Influencer Marketing Case Studies, Social Media Influencers, Sponsored Content With Influencers, YouTube Influencers