Paying influencers you respect: what you need to know

[Dimaeiya333]

While influencers offer marketers new opportunities to reach new audiences with authenticity and, more importantly, generate ROI, with this explosion of influencer activity comes a host of new and growing risks. Namely, compliance risks.


Key findings:
The rapid growth in the use of influencers in marketing campaigns has increased the compliance risks faced by businesses.
These compliance risks are often related to payments: ensuring that creators are paid appropriately and that their private information is stored securely.
Compliance risks also often relate to ensuring that the business relationship between the brand and the influencer is transparent, requiring full disclosure in all promotional content.
Companies can stay away from risk by encouraging influencers to include disclosure terms like #AD in their content, staying on top of changes in local regulations, developing their own compliance policies, and incorporating a proven digital payments solution to pay creators securely.

More and more companies are using influencers as a central pillar of their marketing strategies , especially when it comes to social media. Given the numbers, it’s obvious why:

Some surveys suggest that 93% of marketing professionals have used or considered using influencer marketing in their work.
The value of the influencer marketing industry as a whole is set to sur chief of vp and training email database pass the $16 billion mark this year.
A study of marketing professionals revealed that influencer content generates 8 times more engagement than branded content on average.
The ROI of influencer marketing is 11 times higher than traditional forms of digital marketing, such as banner ads.
What is influencer compliance?
Compliance is, on paper, following a set of rules. However, it is much more complex than that. Even in long-established categories like health and safety or finance, these rules are changing and adapting all the time. In a rapidly evolving and growing category like influencer marketing — where the rules are a patchwork of industry regulations and federal, state and local laws — it can be difficult to keep up.

Compliance in terms of influencers can encompass areas such as privacy, confidentiality, accuracy and payments . There is often a lot of crossover between these areas – especially in payment compliance, which is repeatedly one of the most contentious issues for marketers who employ influencers.

Within the realm of influencer payment compliance, there are intersecting subsections to be aware of, which can make following the rules even more confusing.

In this blog, we will focus specifically on paying influencers compliantly and ensuring that the transparency of those payments meets compliance expectations.