Kathy Perry shares with Jim Blasingame on the Small Business Advocate Radio Show, how Social Media Influencers are expanding rapidly, making it tougher to regulate by the FTC. The FTC recently reminded 90 influencers and marketers that the law requires them to “clearly and conspicuously disclose their relationships…when promoting or endorsing products through social media.” It’s illegal when you fail to publicly disclose when you are being compensated for promoting products or services by sharing tips with fans.
The Influencer Market is on the rise from $500 million in 2015 to an expected $5 billion-$10 billion by 2020, according to Mediamix. Many smaller businesses are forgetting that the FTC regulations apply to them also.
Word of Mouth marketing is much more effective than advertising, because people trust it more and when influencers share information and tips with their audience, it becomes an effective way of marketing. The challenge is about disclosure – letting your audience know that you have been paid to try their product/service and here is your opinion about it.
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