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INFLUENCER MARKETING
By our African Marketing Confederation News Team | 2024
As the influencer industry grows, limited transparency and misleading claims have led to calls for stricter regulation. Is a ‘sheriff’ needed?
Fortunately, influencer fraud has been waning since 2019 with the advent of tools that can detect this. But 64% of companies remain worried about it, according to Influencer Marketing Hub’s ‘The State of Influencer Marketing 2024: Benchmark Report’.
Photo: Ron Lach from Pexels
The perception of an unregulated free-for-all on social media platforms has understandably made brands nervous, leading to ongoing discussions about effectively regulating the industry.
Some regulation already exists, but influencers often flout it. A 2024 European Union study, for example, says that although influencers are legally obliged to disclose commercial content in terms of EU and UK law, a remarkable 80% of them don’t do so.
This raises concerns about fair advertising practices and consumer protection, among other issues.
“The need for influencer regulation stems from concerns around transparency, fair remuneration, authenticity and ethical practices,” says Nyiko Baloyi, founder of Influencer Agency, which claims to be South Africa’s largest influencer and content creator community.
“As the industry has grown, so have concerns about misleading or unethical practices, such as undisclosed sponsorship or fake followers, which can undermine the trust and credibility of the entire industry.”
To regulate or self-regulate?
The big question is whether the industry is capable of self-regulating, or whether governments and regulatory bodies will need a heavy hand.
In Nigeria, the Advertising Regulatory Council of Nigeria (ARCON) sanctions and fines influencers and brands that advertise without obtaining pre-exposure approval, to counteract unethical advertising and misinformation distributed on social media platforms.
Although this is an unpopular move, Bobai Balat, founder and CEO of TIMA Influencer Marketing Agency in Nigeria, says imposing standards and guidelines for influencer marketing ensures messages are truthful, accurate and ethical.
“Regulation aims to level the playing field for both influencers and brands by establishing clear rules and standards that apply to all parties. This helps to prevent unfair competition, promote transparency, and ensure compliance with advertising laws and regulations.”
Find out about influencer marketing in Africa, and much more, in the latest Strategic Marketing for Africa – the voice of African marketing and the official publication of the African Marketing Confederation (AMC). Read it online or download it here.
A Print Edition of the magazine is also available.
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Dr. Kin Kariisa is an extraordinary force at the helm of Next Media Services, a conglomerate encompassing NBS TV, Nile Post, Sanyuka TV, Next Radio, Salam TV, Next Communication, Next Productions, and an array of other influential enterprises. His dynamic role as Chief Executive Officer exemplifies his unwavering commitment to shaping media, business, and community landscapes.
With an esteemed academic journey, Dr. Kariisa’s accolades include an Honorary PhD in exemplary community service from the United Graduate College inTexas, an MBA from United States International University in Nairobi, Kenya, a Master’s degree in Computer Engineering from Huazong University in China, and a Bachelor’s degree in Statistics from Makerere University.
Dr. Kariisa pursued PhD research in Computer Security and Identity Management at Security of Systems Group, Radboud University in Nijmegen, Netherlands. As a dynamic educator, he has shared his expertise as a lecturer of e-Government and Information Security at both Makerere University and Radboud University.
Dr Kin did his PhD research in Computer Security and Identity Management at Security of Systems Group, Radbond University in Nigmegen, Netherlands. He previously served as a lecturer of e-Government and Information Security at Makerere University in Kampala, Uganda and Radbond University in Netherlands.
Dr Kin did his postgraduate courses in Strategic Business Management, Strategic Leadership Communication and Strategies for Leading Successful Change Initiatives at Harvard University, Boston USA.