How do advertising and publicity law requirements affect brands?

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his regulation brings with it a series of implications for brands, as they will have to be more cautious when looking for influencers to develop collaborations, ensuring that they comply with disclosure and transparency regulations in their publications.

The new reality places shared responsibility between brands and influencers, requiring both to comply with stipulated regulations. Companies will have a duty to educate influencers about their legal obligations when promoting products, which may require greater investment in training and resources to properly comply with regulations.

On the other hand, the restrictions on advertising campaigns are stricter, since, as provided for in the regulations, certain types of promotions and product categories are restricted in influencer advertising that until now operated with greater freedom.

However, it is also important to highlight some of the benefits that the influencer law brings with it. This regulatory framework could also strengthen consumer confidence in influencer recommendations, since, by establishing clear and mandatory standards, transparency in collaborations is promoted. Brands that choose to carry out influencer contracts that truly respect these rules can see a higher return on investment, by benefiting from greater credibility with the public.

Will this regulation affect rates for collaborations with influencers?
The Royal Decree in Spain could impact influencer fees , as greater transparency in deals is expected. This would potentially lead to companies becoming more selective when choosing their collaborators, affecting the supply and demand for influencer services. As creators are required to comply with new legal requirements, brands could adjust their fees accordingly.

Regulation also has the potential to change the way brands value collaborations. If higher standards of transparency and advertising ethics are set for audiovisual media services, companies may be willing to pay more to influencers who meet these criteria, which could raise the rates of those who align with the new regulations.

Finally, this new regulation could benefit micro and nano influencers , who tend to have higher engagement rates and are perceived as more authentic. If brands want to comply with the regulations without losing a genuine connection with their audience, they could offer attractive rates to these profiles, which could alter the price equilibrium that has been maintained in the market for the past few years.

About Kolsquare
Kolsquare is Europe's leading influencer marketing platform, offering a data-driven tool that enables brands to scale their KOL (Key Opinion Leader) marketing strategies through authentic partnerships with top creators.

Kolsquare’s advanced technology helps marketers seamlessly identify top cont vp r&d email database ent creators by filtering their content and audience, while allowing them to build, manage, and optimize campaigns from start to finish. This includes measuring results and comparing performance to competitors.

With a thriving global community of influencer marketing experts, Kolsquare serves hundreds of clients – including Coca-Cola, Netflix, Sony Music, Publicis, Sézane, Sephora, Lush and Hermès – by leveraging the latest Big Data, AI and Machine Learning technologies. Our platform leverages a vast network of influencers with over 5,000 followers in 180 countries across Instagram, TikTok, X (Twitter), Facebook, YouTube and Snapchat.

As a BCorp company, Kolsquare leads the race in Responsible Influence, championing transparency, ethical practices and meaningful collaborations that inspire positive change.