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Digital Influencers and Advertising

Boundaries

presentation of an ongoing study

Lurdes Vargas
with Cristina Santos - CICANT - and Madalena Bettencourt - ARP
SOCIAL
& MEDIA BACKGROUND
From technological evolution emerged a new
communication paradigm, based on the
emancipation, empowerment and engagement
of users, who are no more mere consumers but
also producers of content - prosumers

These changes, stemming from digital


supremacy, have disruptive implications in
advertising. Consumer testimonials are
perceived as more credible and reliable than
brands speeches
Carrera, 2015; Fontenelle, 2015; Guedes, Silva & Santos, 2014;
Martins, Ruão & Melo, 2020; Mesquita, Ruão & Andrade,
2020; Scafura, 2020
“C a
con su a l
abo versati
ut b on s
r
now ands a
cred more re
ib le
targ than
adv eted
e
cam rtising
p a ig
Kotl
er, K n s”
arta
aya j
201 & Setia
7 wa n,
“( …
stra ) ask
adv ngers f
ic o
m e d e on so r
t h e m i a a n d c ia l
m t r us
a dv ore t
erti t
sin g h a n
exp a nd
op in e r t
ion s
Kotl
er, K

arta
jaya
201 & Setia
7 wa n,
And there is a new player in
the market!
The digital influencer, an opinion
leader with the ability to mobilize
followers on social networks, and
whose discourse may have a
commercial character
Kotler, Kartajaya & Setiawan, 2017
LEGAL
& REGULATORY
FRAMEWORK
Portuguese Advertising Code

Article 8 - Principle of Identifiability

Advertising must be clearly identified as such, whatever the means


of dissemination used.
Law-Decree 57/2008
Unfair Commercial Practices Regulation (UCPR)
Implements the EU Directive 2005/29/EC – Unfair Commercial Practices
Directive - UCPD
Law-Decree 57/2008

Article 8 – Misleading Practices in all Circumstances

Shall be misleading in all circumstances the following practices:


(…)
(m) Using editorial content in the media to promote a product where a trader has
paid for the promotion without making that clear in the content or by images or
sounds clearly identifiable by the consumer.
(…)
(z) Falsely claiming or creating the impression that the trader is not acting for
purposes relating to his trade, business, craft or profession, or falsely representing
oneself as a consumer.

(implements points 11 and 22 of Annex I UCPD)


SOFT LAW: EU Guidelines

EU Commission Notice 2021/C 526/01 - Guidance on the


interpretation and application of Directive 2005/29/EC

“For the purposes of the UCPD, an influencer would qualify as a ‘trader’ or,
alternatively, as person ‘acting in the name of or on behalf of a trader’. Persons
that frequently carry out promotional activities towards consumers on their
social media accounts are likely to qualify as ‘traders’, regardless of the size of
their following. (…) The obligations to be clear about the commercial
communication apply to traders regardless of whether they are the suppliers of
the products”
SOFT LAW: Advertising Self-Regulation and
Government Guidelines
• International Chamber of Commerce (ICC)’s Advertising and Marketing
Communications Code

• Code of Conduct of the Advertising Self-Regulation Agency (ARP) in Advertising


and other forms of Commercial Communication (Portuguese)

• European Advertising Standards Alliance (EASA)’s Best Practice


Recommendations (BPR) on Digital Marketing Communications (2015 version)

• EASA’s Best Practice Recommendation on Influencer Marketing (2018)

• Consumer General-Directorate (DGC)’s Guide to Influencers and Advertisers


The project
Digital Influencers and Advertising Boundaries
Primary purpose:
Analyze influencer’s practices with
commercial contents in

verifying the levels of compliance with


the Principle of Identifiability
Secondary purposes…
Generate recommendations to be considered by…

• ARP’s 3Is Guide - Influence the Influencers who are Influenced


- Good Practices on Influencer Marketing and Native Advertising

• ARP’s Code of Conduct in matters of Advertising and other types


of Commercial Communication

• The community of digital influencers, brands and influencer


marketing agencies - generate awareness of the importance and the
advantages of good practices
R E S E A R C H T E A M

L E A D E R S

Research Center Self-Regulation Agency

PA R T N E R S

Research Center Software & AI Company


Research Environment
rite
I N S TA G R A M
fa v o
T he o r k o f
i a l n e tw
so c u g u e se
r t
the Po tion
p o p u la )
(2 7 ,3 %
m illion
5.40
users
in PT

https://datareportal.com/reports/di
gital-2022-portugal?rq=portugal
Sample
1 0 0 0 I N F L U E N C E R S A N D 2 7 7 B R A N D S W E R E M O N I T O R E D

FOR THIS ANALYSIS, WERE CONSIDERED ONLY


PUBLIC INSTAGRAM ACCOUNTS WITH MORE
THAN 2,500 FOLLOWERS
Methodology
concurso
Publicidade #concurso
#Publicidade passatempo
Anúncio #passatempo
#Anúncio #giveaway
give away
Patrocínio em colaboração com
#Patrocínio colaboração
Promoção #colaboração
#Promoção #spon
patrocinado por #prom
desconto
parceria remunerada #desconto
com viagem
Keywords #patroc Keywords #viagem
considered being the pub considered prenda
#pub #prenda
correct way of Ad commonly used to oferta
#oferta
signalizing a #ad signalize a presente
commercial/paid #sponsored commercial/paid #presente
sponsored travel
publication embaixador publication, but not #travel
#embaixador sufficient for that prémio
#prémio
embaixadora purpose gift
#embaixadora #gift
#brandambassador voucher
advertising #voucher
teste
#advertising #teste
parceria código de desconto
#parceria #código
#promo convite
promo #convite
I N I T I A L R E S U LT S

Total number of stories checked: 73.785 / total number of brand mentions: 5.318
E VA L U AT I O N M AT R I X
Practices to maintain

Publications with
commercial content
correctly identified

Publications that refer to brands


and use the correct keywords
(green), clear and in a correct
position
Practices to improve

Publications that identify


commercial content in
an incorrect way

Publications that refer to brands


and use the correct keywords
(green), but these are not clear or
are not in a correct position

Publications that refer to brands


and use the incorrect/insufficient
keywords (yellow)

Publications with other words or


expressions used to identify
commercial communication
Practices to change

Publications with
commercial content not
identified at all

Publications with or without brand


mention, but with discount code or
other clear evidence of economic
counterpart or editorial control

+
Not identified as commercial
communication
A N D . . . P R O B A B LY, U N D I S C L O S E D C O M M E R C I A L
C O M M U N I C AT I O N

• Brand mentioned or website link included


• Green, yellow keywords or other words able to identify commercial communication are missing
• The context indicates that it is commercial communication
Thank You!
lurdes.vargas@ulusofona.pt

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