Navigating the Uncharted Risks of Covert Advertising in Influencer Marketing
Business Law Review, Volume 39 (2018) Issue 1,17-19
3 Pages Posted: 3 Jan 2019
Date Written: 2018
Nowadays one of the more commonly used types of advertisement is through the use of influencers by brands on social media. There is no doubt about social media’s – and therefore the influencers’ – potential to reach a wide range of global consumers. Accordingly, such reach makes this global, newly-emerging group of tastemakers very valuable to brands.
However, there is a catch: when content about a product is generated by influencers e.g. on their Instagram account, how do the consumers know whether the influencer genuinely used and liked that product, or whether there is a commercial relationship between the brand and the influencer, and such relationship is the real reason the influencer is posting about that product?
Keywords: advertisement, covert advertising, influencer marketing
JEL Classification: K10, K19
Suggested Citation: Suggested Citation