Influencer Marketing: The Most and Least Trusted Form of Advertising

Is influencer marketing harming trust in advertising?

George Grant, Credos Editor

Influencer marketing has proved to be one of the most versatile, cost-effective marketing tools available today, its success due in part to people trusting the influencers they follow so wholly. Yet Credos’ research into public trust in advertising has revealed consistent distrust in the medium as a whole. ‘Influencer advertising’ has been the least trusted ad type in every year of trust surveys since it was first introduced into our tracking in 2020, and distrust is growing steadily.

In light of the ongoing work that the industry and ASA are doing to address trust in advertising, it is worth asking the question: is distrust in influencer marketing harming advertising trust levels more generally? This article will address that question, firstly by looking at the factors that may be contributing to a lack of trust, and then by explaining what this relatively new industry is doing right.

Individual responsibility

Influencer marketing is a rapidly expanding ecosystem of diverse voices, with new entrants joining the sector every day. Many influencers act responsibly and ethically and, with the sector becoming increasingly professional, there is a growing awareness in that community of what is expected.

Despite this, some influencers have , and many others are simply unaware of industry regulation and advice. Ad disclosures (and a lack thereof) have therefore become one of the central focal points of attention within the industry. While improvements have been made, in part thanks to the training being offered by the ASA to influencers, trust levels may be recovering from previous years when regulation had not yet caught up with the boom in influencer marketing and when disclosures were rarely included on sponsored posts.

The feeling that we may be being sold to without knowing is disconcerting, which partly explains why people so commonly report distrust in influencer marketing. This is why the ongoing work by CAP to monitor and update their rules is so important, as is the recently (re)launched ISBA/IMTB Influencer Code.

Other areas of concern within the influencer community include: the endorsement of inappropriate products, especially for young audiences; the setting of unrealistic body standards (which is also the main focus of many Parliamentarians looking at this issue); child labour concerns in the ‘kidfluencer’ sphere; and the promotion of unhealthy lifestyle habits. Influencers must take personal responsibility to ensure that harmful and deceitful behaviours such as these are carefully avoided.

Blending editorial and commercial

An intrinsic part of the influencer marketing model is the integration of editorial and commercial content, and is another factor that may be harming influencer trust levels. Liselot Hudders, a Belgian academic specialising in influencer marketing, characterised the concept in the following way:

“Influencer marketing may mislead followers as it is extremely difficult to distinguish commercial from editorial content and distinguish genuine from sponsored brand endorsements” – Liselot Hudders, Credos Briefing Papers

This blend of editorial and commercial content is not a new phenomenon; ‘native advertising’, referring to advertising content which intentionally matches the style and function of the media format in which it is published, has existed in print long before the advent of influencer marketing. However, unlike traditional forms of advertising (as well as most new ones), even when we know we are viewing sponsored content, it can be unclear what is sincere opinion and what is advertising. Traditional advertising forms are more obviously selling to us (whether that be long-term brand building, sales activation, or selling a positive social cause). This lack of distinction may partly explain levels of distrust in the sector today.

Regulatory difficulties

There are several difficulties associated with regulating influencers, and the are having to evolve to meet the industry’s needs. While clear and noticeable improvements have been made, the low barrier to entry into the market, as well as the sheer numbers in the field, makes it difficult to ensure regulatory compliance across the board. That said, the ASA’s introduction of data science tools to analyse large numbers of influencer posts swiftly and report any lacking proper disclosure of commercial content is helping to tackle this issue at scale. Compliance with the rules after such ‘sweeps’ is reported to be excellent, suggesting that compliance is as much an issue of ignorance as it is of intentional flouting. That is why extensive education will be a key solution going forwards, alongside consistent efforts to enforce standards.

Regulators and media platforms wisely focus their attention on macro influencers – influencers with the largest number of followers and therefore the greatest influence – but estimates have placed nano-influencers and micro-influencers (influencers with under 50,000 followers) at a combined 87% of all influencers worldwide[1], and companies are increasingly turning towards these smaller influencers due to their higher engagement levels. Keeping watch over such large numbers of accounts is a Herculean task for regulators, despite data science developments. This is where industry standards signed on to by advertisers and agencies – such as the ISBA/IMTB Influencer Code – are crucial as companies must commit to adhere to the standards regardless of the reach of the influencer they are working with. Spreading word of these standards is crucial if they are to be at all effective.

It is also worth noting that the ASA’s jurisdiction is limited to the UK, meaning that the high regulatory standards we have come to expect the International Chamber of Commerce and should result in greater clarity. Each social media platform also has its own strict set of rules and regulations for its content creators, and enforcement measures can be severe. Continued vigilance, as well as from each of the tech platforms in collaboration with regulatory bodies is paramount.

But…

Despite the above factors, plenty of people trust individual influencers. If they didn’t, companies wouldn’t be expanding their influencer marketing budgets year-on-year[2]. Here is some other research into influencer trust:

• 62% of social media users trust influencers over celebrities [3]
• 37% of consumers trust social media influencers over brands [4]
• 36% say influencer posts are the best way to get them to try new products [5]

What can we learn from these findings? That the personal relationships influencers build breeds trust with their followers; that people often trust people over brands; and that the loyalty they foster often leads to action. An influencer’s success depends on their ability to create trust with their audience, making sincerity and authenticity a priority at an early stage. Some influencers aim to only promote products that they already use or appreciate, making their endorsements closer to recommendations from friends than traditional advertising. For these people, influencer marketing may be a medium that is the most trusted of all, pointing to influencers’ polarising effect.

Positive social impacts of influencers

Importantly, despite their often-negative framing, influencers are also doing great work. The media’s depiction of influencers as narcissistic and shallow is largely unwarranted; the influencer community is made up of a diverse collection of content creators who are often highly knowledgeable in a particular field – anything from vegan cooking, to travel, to parenting advice. Their expertise is their selling point, so content needs to be of value to ensure continued relevance and popularity.

The influencer community is also increasingly seeing positive social contributions from major figures; in addition to positively affecting society, these actions boost the influencer’s reputation, and reputation for an influencer is everything. Influencers played a crucial role in spreading awareness of the UK’s track and trace system during the height of COVID-19, with £63,000 spent on nearly 50 UK influencers as a key part of the system’s marketing strategy. This was an important measure, as engagement with a younger audience was critical to the success of the programme.

Trust’s digital divide

Credos have repeatedly found a stark digital and generational divide when it comes to trust in advertising. The low levels of trust in influencer marketing should therefore be viewed as part of a wider conversation regarding the public’s understanding of, and familiarity with, new marketing technologies and tools: 38% of 18–24-year-olds answered that they trusted influencer marketing, compared to just 3% of over-75s. This disparity is in keeping with the trends in other new forms of advertising, including ‘social media’, ‘mobile phone’ and ‘podcast’ advertising but is most pronounced in this sector.

In Credos’ qualitative trust research in 2021, one respondent in the 25-34 group cited clear improvements in influencer regulation as a factor in increasing his trust in the industry as a whole:

“I feel advertising is more trustworthy than before on the whole as it is more regulated, an example being that influencers need to disclose that their post is an advert and paid partnership which makes it very easy to distinguish between paid for and genuine content” – Male 25-34

So, is influencer marketing harming overall trust levels?

It is difficult to say with confidence whether low trust levels in the influencer marketing community is having an impact on the broader industry – as Credos’ own research has only included influencer marketing for two full years, more data will be needed to draw out a fuller picture. The area is largely seen as separate from other forms of advertising, due to the distinct differences in delivery, so it is unlikely that distrust in influencer marketing would necessarily decrease trust in other forms of advertising. In fact, it is influencer marketing’s removal from advertising that makes people wary of it in the first place.

What is clear, though, is the huge amount of upside that influencer marketing has when it comes to trust. For that upside to be realised, a collaborative, industry-wide response is needed. Increased regulatory scrutiny, as well as a professionalisation of the sector, should lead to greater control and transparency, but more needs to be done, and with greater urgency. And if the influencer community can continue contributing positively to social causes, while minimising irresponsible behaviour at the individual level, there is hope that they can be a part of advertising’s trust solution, rather than one of its problems.

References

[1] www.digitalinformationworld.com/2021/04/ever-thought-about-how-many-influencers.html

[2] www.verifiedmarketresearch.com/product/influencer-market/#:~:text=Influencer%20Marketing%20Market%20size%20was%20valued%20at%20USD,a%20CAGR%20of%2031.5%25%20from%202022%20to%202030.

[3] yougov.co.uk/topics/resources/articles-reports/2022/03/18/62-social-media-users-trust-influencers-more-celeb

[4] www.prnewswire.com/news-releases/37-of-consumers-trust-social-media-influencers-over-brands-301538111.html

[5] yougov.co.uk/topics/resources/articles-reports/2022/03/18/62-social-media-users-trust-influencers-more-celeb

For questions relating to this article, or any of the topics discussed, get in contact at credos@adassoc.org.uk