Influencer marketing has become an essential part of digital marketing strategies in recent years, with many brands relying on influencers to promote their products and services to a wider audience. However, with the growth of influencer marketing comes the need for regulations and legal guidelines. In Australia, the laws governing influencer marketing are complex and can be confusing for both influencers and brands. In this article, we will cover everything you need to know about the laws in Australia that govern influencer marketing.
Influencer Marketing in Australia
Influencer marketing has become an essential component of digital marketing strategies in recent years, and it's no surprise that many Australian brands are using this method to reach a wider audience. But with great power comes great responsibility, and understanding the regulations and legal guidelines surrounding influencer marketing is crucial.
Influencer marketing has exploded in recent years, with brands turning to social media stars to promote their products and services. To ensure that this type of advertising is transparent and fair, the Australian Association of National Advertisers (AANA) has developed a code of ethics that all influencers and brands must follow. The code requires influencers to disclose any commercial arrangements they have with brands, and to ensure that their posts are not misleading or deceptive. The Advertising Standards Bureau (ASB) is responsible for enforcing the code and has the power to remove any ads that breach the guidelines. So, while influencer marketing can be a powerful tool for businesses, it's important to adhere to the AANA code and ensure that your advertising is ethical, honest, and transparent.
Sponsored Content v Product Reviews what’s the difference?
One of the most crucial aspects of influencer marketing is sponsored content disclosure. Influencers and brands must be transparent about sponsored content to avoid misleading consumers. But how do you differentiate between sponsored content and product reviews? We'll answer that question and more.
- Sponsored content is paid for by a brand, while product reviews are not.
- Sponsored content usually has a call to action or a message to promote the brand, while product reviews focus on the product itself.
- Sponsored content often uses specific hashtags or mentions the brand in the post or caption, while product reviews might not.
- Sponsored content is usually made in partnership or collaboration with a brand, while product reviews can be made by the influencer on their own.
- Sponsored content is often very positive about the product, while product reviews may be more balanced and talk about both the good and bad things about the product.
Risks of non-compliance with Influencer Marketing laws in Australia
The risks of non-compliance with influencer marketing laws in Australia are severe. In recent years, we've seen cases of influencers and brands being fined for failing to disclose sponsored content properly. To avoid becoming a cautionary tale, it's crucial to understand the legal guidelines and best practises for compliance.
When creating sponsored content, influencers need to use specific hashtags to disclose that the content is sponsored. The specific hashtags may vary depending on the platform, but here are some commonly used ones:
- This hashtag, #ad, is often used on social media sites to show that content has been paid for.
- Like #ad, this hashtag lets people know that a post is paid for by a company.
- Using the hashtags #paidpartnership or #sponsoredpost on Instagram lets people know that a post is part of a paid partnership with a brand.
- #sponsoredby or #inpartnershipwith: You can also use these hashtags on Instagram to show that you are getting paid to work with a brand.
It's important for influencers to use clear and specific hashtags to disclose sponsored content and to ensure that the disclosure is easy for consumers to understand. This can help to maintain transparency and build trust with their audience.
Case studies of successful and unsuccessful influencer marketing campaigns in Australia
Let's highlight a campaign that was successful versus one that was not, by examining case studies, we can learn from the good, the bad, and the ugly.
Successful campaign:
Bondi Sands, an Australian brand that produces self-tanning products, ran a successful influencer marketing campaign in 2020. The brand partnered with several popular Australian influencers, who posted sponsored content featuring the product. The campaign was successful because the influencers were seen as genuine fans of the product, and the sponsored content was well-designed and visually appealing. The influencers also used clear and specific disclosure hashtags to make it clear that the content was sponsored.
Unsuccessful campaign:
Involves the beauty brand Eco Tan. In 2020, the Australian influencer Chloe Szepanowski shared an Instagram post promoting Eco Tan's products without adequately disclosing that the post was a sponsored ad. The post was brought to the attention of the Advertising Standards Bureau (ASB), which found that the post breached section 2.7 of the AANA code. Eco Tan was required to take down the post and ensure that all future influencer marketing campaigns were clearly marked as advertisements.
In this case, the lack of disclosure meant that consumers may have been misled into believing that the influencer's endorsement was genuine rather than paid for. Section 2.7 of the AANA code requires that advertising and marketing communications must be clearly distinguishable from editorial content, so that consumers can make an informed decision about whether to buy a product based on genuine recommendations or paid endorsements.
These examples highlight the importance of ethical and responsible influencer marketing practises and the potential consequences of getting them wrong. Most campaigns that do well are real, look good, and make it clear that some of the content is sponsored. Campaigns that don't do well can get backlash for spreading harmful messages or using misleading advertising.
Best practises for influencers and brands to comply with Australian influencer marketing laws
Here are some best practises for both influencers and brands to follow when engaging in influencer marketing:
For influencers:
Be honest and transparent. Disclose sponsored content clearly and prominently, and be honest in your reviews and recommendations.
Choose your partnerships carefully. Work with brands and products that align with your values and are a good fit for your audience.
Use your own voice: Create content that is authentic to your personal brand and style, rather than simply regurgitating marketing messages.
Maintain your independence: Don't let brands dictate your content or message. You are the expert on your audience and your brand, so stay true to yourself.
Stay up to date with the guidelines and regulations. Keep yourself informed about the latest regulations and best practises for influencer marketing, so you can ensure that your content is compliant.
For brands:
Choose the right influencers: Work with influencers whose values and audience align with your brand and product.
Be transparent and clear. Clearly disclose any sponsored content, and make sure that your messaging is honest and transparent.
Give influencers creative freedom. Instead of telling them how to do every part of the campaign, let them make content that is true to their own voice and brand.
Stay within the guidelines and regulations. Make sure that your influencer marketing campaigns comply with all relevant advertising and consumer protection laws.
Monitor and measure: Track the success of your campaigns and use the insights you gather to improve future campaigns.
If influencers and brands follow these best practices, they can create successful influencer marketing campaigns that are real, legal, and interesting for their audiences.
Importance of a Solid Contract
Contracts play an important role in influencer marketing, as they can help to ensure that both the influencer and the brand are on the same page in terms of expectations, deliverables, compensation, and more. Here are some things to keep in mind when it comes to influencer marketing contracts:
Include key terms: Make sure that the contract includes all the key terms, such as the scope of work, deliverables, compensation, and timelines.
Be clear on expectations: The contract should clearly outline the expectations for both the influencer and the brand, including what kind of content will be created, how it will be shared, and what the desired outcome is.
Specify compensation: The contract should clearly specify how the influencer will be compensated, whether it's a flat fee, commission, free product, or some other form of compensation.
Include a termination clause: It's a good idea to include a termination clause in case either party needs to terminate the contract early for any reason.
Talk about intellectual property rights. The contract should say who owns the intellectual property rights to the content made and if the brand has the right to use the content outside of the campaign.
Comply with the rules and guidelines: The contract should say that the parties must comply with all relevant rules and guidelines, such as telling people when content is sponsored and following consumer protection laws.
Contracts can be a valuable tool for both influencers and brands to ensure that they are on the same page and can avoid any misunderstandings or legal issues down the line. It's a good idea to have a lawyer review the contract to ensure that it complies with all relevant laws and regulations.
Influencer marketing is an exciting and lucrative field, but it's not without its legal implications. Understanding the legal guidelines and best practises for compliance is essential for both influencers and brands to avoid legal trouble and protect consumers. So let's get informed, stay compliant, and continue to create great content!
If you are an influencer or brand looking for an easy and affordable way to create an influencer agreement, we recommend checking out our influencer agreement templates for brands and influencers, talent agencies and influencers, talent agencies and brands. Our templates are designed to be compliant with AANA and other relevant laws and regulations, and can be customised to meet your specific needs. Don't leave your influencer marketing campaigns to chance - protect your interests and promote transparency with a clear and comprehensive influencer agreement. Visit our website today to learn more and download our template.
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This article is for general information purposes only and should be used solely as general guidance. It does not and is not intended to represent legal advice or other professional advice.
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