The 'influencer' phenomenon grows outside of advertising regulations

The influencer phenomenon is spreading in Spain through the increasingly widespread use of TikTok and Instagram.

Oliver Thansan
Oliver Thansan
20 April 2024 Saturday 04:41
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The 'influencer' phenomenon grows outside of advertising regulations

The influencer phenomenon is spreading in Spain through the increasingly widespread use of TikTok and Instagram.

Hooked on the screens, young and old are entertained by following the lives of these characters who share their intimacies while publishing advertisements in which they themselves promote products from brands that pay them to do so. This type of marketing was born more than ten years ago with the aim of attracting young audiences and, over the years, it has become more professional but establishing practices that escape legality.

According to the IAB Spain association, which is part of a global marketing and advertising entity, only 17% of brand content published by influencers is identified – through a tag or a comment – ​​as advertising, so this practice can lead to confusion or deception of the audience, especially if they are minors and if the content is really paid for.

“This problem has always existed and both brands and influencers should make an effort to make it clear when a publication is an advertisement,” warns Carlos Ramalho, author of the report and director at Primetag. The consultant recognizes that it is difficult for authorities to monitor camouflaged advertising since, sometimes, influencers recommend brands without being paid, simply because they like them.

If the protagonists do not take responsibility for misleading advertising, the phenomenon can grow since the community of influencers is growing in Spain. According to the report, the group is made up of 235,000 people, 14% more than the previous year. They have more than 10,000 followers, whether on Instagram or TikTok. The study, which has collected a sample of 97 million content on both networks, leaves out YouTube, a digital community in which it is also very common for these professionals to post videos recommending brands and products.

The industries in which this type of marketing has the most roots are, as the graph reflects, sports and fitness (25%) and are followed, at a distance, by fashion (15%), entertainment (12%). and beauty and cosmetics (9.4%). The most popular brands are, in this order, Nike, Zara, Shein, MotoGP and Prozis. “In the last year we have seen how paid content has grown a lot in technology and also in over-the-counter pharmaceutical products,” he adds.

According to the report, influencer marketing generated a business volume of 118 million euros, 30% more than in 2022, thanks to the strong growth of TikTok, whose business, at 66 million, already exceeds that of Instagram, with 52 Ramalho clarifies that the figures are estimates and that, in reality, they could be higher since it is impossible to calculate the impact of misleading advertising.

The growth of brand posts on TikTok has skyrocketed 215% in the last year, reaching 183,000, while on Instagram it has fallen 6%. However, this network remains in clear leadership with 274,000 brand publications. “TikTok will not absorb Instagram activity. These networks are going to be complementary to each other,” says Ramalho, who at the same time admits the 'tiktokenization' of Instagram. In fact, the Reels video format, which imitates short videos on the Chinese network, is already the most popular among brands.

The report also reveals that the credibility of influencers is increasing year after year, standing at 65% in the case of micro-influencers – from 10 to 50,000 followers – and 85% in the case of those who exceed half a million. followers.

Despite the increase in credibility, commitment – ​​a concept that measures whether users leave comments, 'like' or share the content – ​​is evolving downwards. In the case of Instagram, it has fallen from 2.4 to 2.2% – so that only 2 users out of every 100 react – while in the case of TikTok engagement has fallen from 5.5 to 3.4%. The novelty effect fades, concludes Ramalho.