Social media platforms are a hotspot for paid ads and celebrity endorsements. But what happens when you find out a celebrity was paid to promote a brand unbeknownst to millions of followers? There are positives and negatives of disclosing paid sponsorship on social media, and the D&Co Dynamos of Fort Lauderdale PR firm Durée & Company are here to break them down for you. Here’s why disclosing paid sponsorship will have a positive impact on your business:
- Trust: People value honesty, whether it comes from an individual or a national corporation. Being transparent about paid endorsements is a way to utilize celebrities and other public figures to increase product desirability without sacrificing the integrity of your company.
- Indifference: Most people that follow a celebrity on social media will not care whether or not an endorsement was paid for by a brand or company as long as their favorite social media stars are shown using or wearing the product.
- FTC Crackdown: The Federal Trade Commission has stated that companies and social media stars can be subject to charges for deceiving customers by paying for sponsorships without informing customers. Avoiding legal fees and a tarnished brand is always a good idea.
However, there could be some downsides to revealing sponsorship was not merely voluntary:
- Drop in Sales: When followers find out that a social media celeb was paid to promote a product, they may question the quality and value of the product or brand. This can discourage potential customers who feel it is no longer worth the purchase as it is a paid endorsement.
- Loss of Emotional Appeal: Often times, people buy products endorsed by celebrities, friends and families because they feel some sort of emotional connection to them. Once the sponsorship is revealed as a business deal rather than a casual recommendation from one individual to another, it loses its effectiveness.
With disclosing a paid sponsorship, it ultimately allows the consumer the opportunity to formulate an opinion about a product on their own, but be prepared that it can have both its upsides and downsides. Social media has now become the advertising of the future, whether organic, sponsored or paid campaigns. It is a platform that will continue to increase in popularity and will be a learning curve for users and brands along the way.
About Durée & Company
Durée & Company, Inc. is an award-winning full-service public relations, marketing and special events firm with offices in Fort Lauderdale, Florida and Aspen, Colorado. The firm serves the corporate, agency and non-profit arenas for local, national and international clients focusing on public relations for real estate, public relations for restaurants, public relations for law firms, public relations for charities, public relations for healthcare, and many more. Durée & Company services include Public Relations, Social Media, Marketing, Advertising, Special Events, and Radio Promotions and Outreach.