05-06 Tools Deezer Backstage 07-08 Campaigns Sam Smith, KSI, James Blunt, Pearl Jam 09–16 Behind The Campaign- UKF10 FEBRUARY 19 2020 sandbox ISSUE 246 | Music marketing for the digital era INFLUENCEBAD Social media’s new fault lines COVERFEATURE BAD INFLUENCE Social media’s new fault lines may be doing little to deter deception,” wrote Tighter rules around what they must declare and a series of scandals have not quite knocked influencers Chopra in a statement. off their pedestal, but there has been a lot of damage to some big reputations and this reflects badly on “ The FTC will need to determine whether everyone in the influencer world. Record labels and managers are getting more deeply involved in the to create new requirements for social media platforms and advertisers and whether to influencer world and we look at how they must navigate this new world of regulations and the ever-present activate civil penalty liability.” danger of scandals. We also look at where things are moving next, why Instagram might be losing its Chopra added, “I am concerned influencer crown to TikTok and why things in China are very different to the rest of the world. that companies paying for undisclosed influencer endorsements and reviews are ive by the viral story, die by the viral (far too many examples to mention). Just last week, the FTC appeared to be not held fully accountable for this illegal story. Such is the life of the influencer At the same time, influencers have gearing up for a fresh crackdown on shady activity. Going forward, we need to seek Lin 2020 following a couple of years found a raft of new regulations cramping and questionable influencer marketing, tougher remedies for companies that are that have seen their community rocked by their style. In the UK, influencers now with commissioner Rohit Chopra calling for illegally astroturfing or disguising their scandal (such as YouTuber Chris Ingham have to adhere to ASA (Advertising tighter rules. “Misinformation is plaguing advertising as an authentic endorsement being accused of sending inappropriate Standards Authority) rules on sponsored the digital economy, and recent no-money, or review.” messages to a teenage fan, or Clemmie content, while the FTC (Federal Trade no-fault FTC settlements with well-known Even ahead of possible new US Hooper trolling other Instagram influencers Commission) in the US has issued rules on retailers and brands to address fake reviews regulations, this has all proven tricky through a sock puppet account) and greed disclosure for influencers. and undisclosed influencer endorsements for the sector, with rumours rife that 1 | sandbox ISSUE 246 19.02.2020 COVERFEATURE pulled between the two extremes. “Certain influencers have lost their value,” says Genius. “But there is still an infrastructure there that works. Influencers consistently change. The sort of influencer that might have been powerful, a social media influencer, a year ago may have lost that. But there are also new ones that have come into the space.” Genius believes that as people have become more aware of the often humdrum reality behind the apparently glamorous influencer lifestyles – the begging letters to hotels, desperate sponsorship deals and lack of accountability – the magic has gone. “The Instagram influencer bubble just kind of burst, ” he explains. “Back in the day, a some influencers are bending or simply The ASA , Basheer adds, normally doesn’t on influencer marketing was predicted to lot of the influencers we used to do would ignoring these rules. take a proactive approach to investigation, grow to $6.5bn in 2019, more than double be supermodels on Instagram with large “When you see something that says ‘ad’ limiting itself to examining complaints that the 2017 spend. followings. And that lost its value.” [on a post] it’s not as impactful,” says US DJ it receives. “Typically brands or influencers “I would say the problems with influencers and entrepreneur Genius, who has worked will simply be told to take posts down and were always there; it’s just that people didn’t Reach out and touch… what? with the likes of Megan Thee Stallion and K ensure that they ‘do not appear again in the realise it,” says one US music marketer. Changes at Instagram itself have also Camp. “It just feel like someone is trying to same form,’” Basheer explains. “The bigger “People, and especially companies, are finally contributed to this decline. “When sell you something.” issue is if a decision is brought by the [UK’s] becoming more savvy about the issues that Instagram changed its algorithm from Competition & Markets Authority, who can were always there. The initial excitement being a timeline to being something more Trust, transparency and truth be proactive and does not have to wait to has turned into more reality. [Influencer complicated, it affected influencers’ ability to Tahir Basheer, a partner at Sheridans who receive a complaint. marketing] was put on a pedestal.” reach their audiences,” says one major label works closely with influencers, brands and “That body has the remit to audit Luisa-Christie Walton-Stoev, influencer marketer in the US. “That is very important agencies globally, says that the main issue for influencer activity going back for typically marketing lead at Atlantic Records UK and as business or brands. If you are paying influencers has been press coverage around one year, can sue influencers and has a wider a blogger/influencer at Luisa-Christie, says people for reach based on followers, you are these rules in the mainstream media, which power to take such enforcement action.” that influencer marketing is “certainly” here probably being ripped off. Because a lot of in turn “shines a sometimes unfavourable to stay in the music industry. those people won’t ever see the post.” light on the influencers themselves”. The new gods? Or empty vessels? “We’ve only just touched the surface in Instagram’s experiments with hiding “The hurdle for those influencers – Add into this melée the persistent rumours ways that music companies can creatively likes, which the company has been testing and therefore the brands – is the level of influencers buying followers and you collaborate with influencers,” she says. “I also since 2019, are also hindering the influencer of trust consumers have in them as a have what appears to be an industry in think that artist teams can learn a lot from market. “I haven’t seen likes on a post for marketing outlet,” he adds. “This has meant crisis. And yet, from a slightly different influencers. They are so skilled in building a while,” says one marketer. “As a business that the rules are forming a bigger part of perspective, things might seem rosy for engaged audiences that invest long term person, when I try to decide which influencer brands’ thought processes and perhaps the influencer community. According to and most influencers do it all on their own, to use, that can be frustrating.” that they are more keen to observe the Influencer Marketing Hub (not exactly a creating a brand from scratch.” Rather than spelling the end for rules more closely.” disinterested party, admittedly), spending The truth, as ever, seems to be being influencer marketing, however, she believes 2 | sandbox ISSUE 246 19.02.2020 COVERFEATURE business will simply move elsewhere. Surprisingly perhaps, Genius says Twitter is now hugely important (again) for influencer marketing as people look to drive organic conversation. “We focus more on influencing the conversation around music. It’s all about the chatter. Somebody wants to hear from somebody else that this is something hot,” he says. “It may not be the large influencer account. It may be somebody that’s in your circle that comes across in your timeline.” The key here is that most overused of directly to them.” words – “authenticity”. Authenticity, however, is a double-edged Genius says, “If you look at your Twitter, sword. A paid campaign – whether straight you will see stuff that your friend retweets TikTok recently launched its Creator “If it’s obvious that if someone is only ad or influencer endorsement – cannot, by from an account that you may not be Marketplace to allow brands to connect posting about something because they are definition, be entirely authentic. Meanwhile following. So you may just be on your feed with talent, with more than 1,000 TikTok being paid, followers and fans switch off,” the more brands pile into a platform for its and you see something pop in your feed, as creators currently listed. According to a she says. supposed organic appeal, the less organic somebody retweets from another account. recent AdAge piece on TikTok, advertisers Similarly, Joe Gagliese, co-founder of it will become. Twitter, you could argue, A lot of time we work with that level of pay TikTok stars “anywhere from $1,000 to Viral Nation (viralnation.com) believes currently works for authentic conversation influence.” tens of thousands of dollars” for videos, with that influencers should be given creative precisely because its advertising offer has He adds, “We might put a piece of CJ OperAmericano, who has 715k TikTok freedom to promote a song “as long as it is on yet to take off. content out there through one of our pages, followers, doing deals with companies a positive note and within brand guidelines”. As such, marketers need to make careful we see that we are getting feedback, we including Taco Bell, Alba Botanica and “Influencer marketing is about creating choices about platforms when working take that actual conversation feedback. So Missguided US clothing recently. one-to-one connections, but at scale,” with influencers. “People may want the somebody goes, ‘Hey this is a really dope “It’s not like an ad that someone would he adds.