Advertising regulations harm social media influencers, followers, and marketers alike

Johns Hopkins University | April 15, 2019

Social media has given rise to a new breed of influential figures and brand ambassadors in recent years. Micro- and even nano-influencers-social media users active on platforms such as Instagram and YouTube who have access to anywhere from several hundreds to hundreds of thousands of followers-are increasingly securing endorsement deals and contracts for sponsored content.
In 2017 alone, marketers around the world spent $570 million on social media marketing, according to a report in eMarketer. The New York Times reports that the social media influencer industry is expected to exceed a $10 billion value by 2020.
But a new study from the Johns Hopkins Carey Business School shows that regulations meant to protect consumers from predatory social media marketing tactics actually contribute to a decrease in competition between influencers, causing the overall amount of paid content to rise and audience engagement to plummet.

Spotlight

Before deep diving into your Google AdWords account and rewriting ad copy, it’s important to stop and develop a strategy for your ad creative process. By creating messaging goals and establishing metrics ahead of time, you ensure that the time and resources your company invests in ad creative are well spent. Learn about the who, what, how, when and where of creative optimization.

Spotlight

Before deep diving into your Google AdWords account and rewriting ad copy, it’s important to stop and develop a strategy for your ad creative process. By creating messaging goals and establishing metrics ahead of time, you ensure that the time and resources your company invests in ad creative are well spent. Learn about the who, what, how, when and where of creative optimization.

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