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What Marketers Must Know About YouTube’s “Includes Paid Promotion” Tag
In the past few years, influencer marketing has progressed tremendously, particularly on YouTube, with creators in the one to three million subscriber range now earning an average of $125,000 per sponsored video.
Influencer marketing is becoming a substantial component of advertising budgets, and as it grows, the industry is facing stricter FTC regulations. 2017 was a year characterized by increased FTC enforcement, during which 90 brands and influencers were delivered warning letters for failing to meet the FTC’s guidelines for sponsored content.
In the wake of the FTC’s crackdown, social media platforms are introducing features that foster increased transparency in sponsored content. Both Instagram and YouTube are among those that have added sponsored content disclosure features. Here we’ll break down YouTube’s “Includes Paid Promotion” tag and define what is, how it fits in with FTC guidelines, and what it means for influencer marketing on YouTube and beyond.