INFLUENCER MARKETING

Influencers: Is the sheriff about to tame the ‘Wild West’?

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’.

 

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.

Photo: George Milton from Pexels

“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 latest magazine will be available shortly.

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