Opinion: Are the companies influencers proudly sponsor all they’re cracked up to be?
———-
Youtube and other social media sites dominate many peoples’ spare time. There’s endless streams of content to dive into that are about every topic under the sun.
There have been internet personalities for a long time, but now it’s possible to make a living off of creating online content. However, making enough income from content creation can be tricky. Ad revenue from Youtube videos isn’t always reliable and other social media sites offer no compensation at all.
To have more reliable money coming in, many online creators find sponsors for their content. Sometimes it’s related to the type of content they create, and in other cases it’s more of an impromptu ad read. There have been partnerships between online creators and companies for a long time, but with the concept of influencer marketing well-known in the business world, the process has become commonplace. It makes total sense to do sponsorships as a creator, especially because many companies will reach out directly to them via their business emails. In essence, all they have to do is agree, then are paid a flat rate.
According to a report from Influencer Marketing Hub, influencer marketing is now a $21.1 billion industry. It’s seen as such an enticing option because of how adored and trusted influencers are by their fans. If they put their word behind a product or service, a new audience of people will try it out, or at least be aware of the brand from then on.
However, a lot of influencers don’t properly vet their sponsors. Sometimes, it’s out of pure ignorance or a lack of due diligence, but other times, influencers knowingly take on sponsors that aren’t trustworthy. When money is at stake, some people don’t care if they are giving out false or misleading information.
Some of the sponsor-advertised products are of poor quality, misleading, or a straight up scam. Audiences often look up to the creators they watch and these creators have a responsibility to do right by them, at least by not using their platform to promote something harmful.
While there are still loopholes being exploited, the FTC is gradually updating regulations around online advertising. They made their first regulation for influencers in 2009, which is informally called the Mommy Blogger law. Since then, they have continued to become stricter on disclosure around whether something is sponsored. A lot of people have gotten used to seeing #ad at the very bottom of captions of influencers and celebrities, but that’s no longer enough. Now, they have to display this fact more prominently, either in the image or video itself, or at the top of the caption.
“Many consumers rely upon influencer recommendations in making purchasing decisions, and they should know when a brand paid an influencer for an endorsement, because it affects the weight and credibility the consumers may give to that endorsement,” Michael Atleson, a staff attorney for the FTC’s Bureau of Consumer Protection, said.
One example of a brand that often sponsors influencers is HelloFresh, a home delivered meal kit service. On its surface, it’s a company that promotes healthy eating and provides a convenient service. Underneath this facade, it’s a company with a proven track record of unsafe work environments, low pay, and anti-union actions.
“A lot of the workers that work at HelloFresh can’t even afford a box of HelloFresh,” said Yulisa Elenes, an employee and leader of the union effort in California.
There are testimonies and documentation about how unsafe their work environment is and their continuous push to suppress unionization, yet a progressive youtuber I watch is often sponsored by them. I think that’s a deep hypocrisy. To me, it stinks of virtue signaling and not practicing what you preach.
Making a decent living of any kind is difficult in today’s economic circumstances. Though, I don’t think that’s an excuse to take money from companies that are flagrantly peddling low quality products, not providing the services advertised, or are entirely fraudulent. No matter how much someone admires or respects an online creator, they should always make sure to do their own research on any product they advertise.