User:Julsfaith/sandbox

Regulation
In the United States, the Federal Trade Commission (FTC) treats influencer marketing as a form of paid endorsement. It is governed by the rules for native advertising, which include compliance with established truth-in-advertising standards and disclosure by endorsers (influencers) and is known as the Endorsement Guides. The FTC compiled an easy-to-read guide on disclosure for influencers, specifying rules and tips on how to make good disclosures on social media. The guidelines include reminders of disclosing sponsored products in easily visible places so it is hard to miss, using easy-to-understand language, and giving honest reviews about sponsored products. In 2017, the FTC sent more than 90 educational letters to celebrity and athlete influencers with the reminder of the obligation to clearly disclose business relationships while sponsoring and promoting products. The same year, in response to YouTubers Trevor Martin and Thomas Cassell deceptively endorsing an online gambling site they owned, the FTC took three separate actions to catch the attention of influencers. By using law enforcement, warning letters, and updating the Endorsement Guidelines, the FTC provided influencers with endorsement questions or involved in misleading endorsements and disclosures with clear procedures of how to follow the laws.

Media-regulating bodies in other countries – such as Australia – followed the FTC in creating influencer-marketing guidelines. The United Kingdom's Competition and Markets Authority adopted similar laws and tips for influencers to follow.

Facebook and Instagram
Facebook and Instagram have a set of brand content policies for influencer marketing and endorsements. Branded content may only be posted through Instagram and Facebook, and require the business relationships between influencers and endorsers to be tagged when promoting branded content. The branded tool provided in the business layout of Facebook and Instagram is to be used whenever promoting products and endorsers.

YouTube
As of August 2020, YouTube has updated the branded content policies. YouTube and Google's ad policies require influencers to check a box titled paid promotion when publishing sponsored videos and provides instructions on how to set it up. The policies require disclosure messages for the viewers to indicate that the content is promoted.

Applications
Marketers use influencer marketing to establish credibility in a market, to create social conversations about brands, and to focus on driving online or in-store sales. Marketers leverage credibility gained over time to promote a variety of products or services. Success in influencer marketing is measured through earned media value, impressions, and cost per action.

A social media influencer's personal brand and product relation with marketers are important concepts. As social learning theory suggests, influencers serve as informed consumers, and authenticity matters. When credible influencers match up with the product, consumers will consider the promoted recommendations. A study found that respondents see influencers as a neutral authority pitch for a product. Compared to CEO spokespeople, influencers are more approachable and trustworthy. Consumers are more likely to respond to influencers if both parties share certain characteristics and beliefs.

A 2014 study shows a majority of millennials and baby boomers prefer word-of-mouth. Research indicates influencers are more effective for younger demographics and with the rise of social media influencers, influencer marketing could be a trend.