Latest

Guidelines become blurred lines in the absence of strict FTC regulations for election influencers

Nov 4, 2024

Paramark News Desk

Key Points

  • U.S. election campaigns are increasingly relying on social media influencers to engage voters across the political spectrum

  • Lack of strict regulations and transparency in endorsements raises concerns about potential long-term impacts

It's our responsibility to do right by our content creators, and not put them in a position where they're going to push forward a narrative that may come back to bite them in the future.

James Michalak

CEO
,
NeoReach

Opaque oversight: Political campaigns and lobbyists in the U.S. are diving headfirst into the influencer pool, betting big on social media stars to charm voters from both sides of the aisle. But the absence of rigid regulatory oversight and transparency around these influencers' political endorsements and methods of disclosure poses concerns about long-term consequences.

Blurred lines: Closely following regulations might seem like a tedious formality for content creators, but it's actually a crucial defense against hefty fines and tarnished reputations. When the lines between personal expression and paid endorsements blur, it often falls on the companies facilitating the brand-influencer relationship to protect both sides' integrity.

Power in discretion: NeoReach is an influencer marketing software company that enables large brands to conduct influencer marketing campaigns internally. The company allows brands to bypass agencies or multi-channel networks, and has worked with mega companies like Nvidia, Netflix, and DraftKings.

"Our organization has gotten really good at saying 'no' - especially with the polarization and divisiveness of recent elections," says NeoReach CEO James Michalak. The company touts its discerning approach to diligence in understanding the end goals of the political organizations, and the potential effects on its roster of creators. "It's our responsibility to do right by [our content creators], and not put them in a position where they're going to push forward a narrative that may come back to bite them in the future," says Michalak.

It's not just a particular niche [of content creators] that talk about politics and news. It expands to all niches across social media.

Steph Payas

CMO
,
NeoReach

Wide targeting: During the first half of 2024 alone, the US presidential election garnered over 100 million mentions across social media platforms worldwide, according to NeoReach's own recently released research report. A hotly contested election with high-stakes impacts translates to unmapped territory for most influencers, and campaign organizations aren't specifically targeting political content creators, according to NeoReach CMO Steph Payas. "It's not just a particular niche that talks about politics and news. It expands to all niches across social media. They're going to lifestyle creators, fashion creators, and beauty creators with diverse followings."

Reducing risk: But uncharted equals opportunity for companies like NeoReach, and its leadership is certainly uniquely positioned for the call. "In a previous life, I was on a team at another company that worked directly with the Word of Mouth Marketing Association and the FTC to develop the original disclosure guidelines," Michalak says.

The challenge is that the current rules fall short of being hard mandates, thus leaving too much room for interpretation on influencer advertising disclosures. "From my perspective as a CEO and a holder of liability for our company, it would be a hell of a lot easier if [the FTC's rules] became hard and fast regulations as opposed to just guidelines." For its part, NeoReach advises overt disclosure in the form of sponsored hashtags and transparent copy. However, the onus still falls on creators to properly employ best practices, and keep the personal and professional well-established in their feed.

Latest

Guidelines become blurred lines in the absence of strict FTC regulations for election influencers

Nov 4, 2024

Paramark News Desk

Key Points

  • U.S. election campaigns are increasingly relying on social media influencers to engage voters across the political spectrum

  • Lack of strict regulations and transparency in endorsements raises concerns about potential long-term impacts

It's our responsibility to do right by our content creators, and not put them in a position where they're going to push forward a narrative that may come back to bite them in the future.

James Michalak

CEO
,
NeoReach

Opaque oversight: Political campaigns and lobbyists in the U.S. are diving headfirst into the influencer pool, betting big on social media stars to charm voters from both sides of the aisle. But the absence of rigid regulatory oversight and transparency around these influencers' political endorsements and methods of disclosure poses concerns about long-term consequences.

Blurred lines: Closely following regulations might seem like a tedious formality for content creators, but it's actually a crucial defense against hefty fines and tarnished reputations. When the lines between personal expression and paid endorsements blur, it often falls on the companies facilitating the brand-influencer relationship to protect both sides' integrity.

Power in discretion: NeoReach is an influencer marketing software company that enables large brands to conduct influencer marketing campaigns internally. The company allows brands to bypass agencies or multi-channel networks, and has worked with mega companies like Nvidia, Netflix, and DraftKings.

"Our organization has gotten really good at saying 'no' - especially with the polarization and divisiveness of recent elections," says NeoReach CEO James Michalak. The company touts its discerning approach to diligence in understanding the end goals of the political organizations, and the potential effects on its roster of creators. "It's our responsibility to do right by [our content creators], and not put them in a position where they're going to push forward a narrative that may come back to bite them in the future," says Michalak.

It's not just a particular niche [of content creators] that talk about politics and news. It expands to all niches across social media.

Steph Payas

CMO
,
NeoReach

Wide targeting: During the first half of 2024 alone, the US presidential election garnered over 100 million mentions across social media platforms worldwide, according to NeoReach's own recently released research report. A hotly contested election with high-stakes impacts translates to unmapped territory for most influencers, and campaign organizations aren't specifically targeting political content creators, according to NeoReach CMO Steph Payas. "It's not just a particular niche that talks about politics and news. It expands to all niches across social media. They're going to lifestyle creators, fashion creators, and beauty creators with diverse followings."

Reducing risk: But uncharted equals opportunity for companies like NeoReach, and its leadership is certainly uniquely positioned for the call. "In a previous life, I was on a team at another company that worked directly with the Word of Mouth Marketing Association and the FTC to develop the original disclosure guidelines," Michalak says.

The challenge is that the current rules fall short of being hard mandates, thus leaving too much room for interpretation on influencer advertising disclosures. "From my perspective as a CEO and a holder of liability for our company, it would be a hell of a lot easier if [the FTC's rules] became hard and fast regulations as opposed to just guidelines." For its part, NeoReach advises overt disclosure in the form of sponsored hashtags and transparent copy. However, the onus still falls on creators to properly employ best practices, and keep the personal and professional well-established in their feed.