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Consumer goods giant Unilever, the world’s second-biggest advertiser, is cutting ties with digital media “influencers” that buy followers, saying it wants to help make advertising more transparent.
With big brands advertising more on social media sites like Instagram and Facebook, a cottage industry of “influencers” has sprung up, in which celebrities and other popular people earn money by posting about products. But their audience numbers, which often dictate their fees, can be enhanced by purchasing followers.
The practice of buying followers risks eroding trust and therefore damaging one of the fastest-growing areas of advertising – the billion-dollar-a-year market now known as “influencer marketing” – and Unilever says it wants it to stop.
Its chief marketing officer, Keith Weed, will pledge on Monday that the maker of Dove soap and Hellmann’s mayonnaise will never buy followers or work with influencers who buy followers. It will also prioritize social media platforms that take action to stamp out fraud and increase transparency.
“Trust comes on foot and leaves on horseback, and we could very quickly see the whole influencer space be undermined,” Weed said. “There are lots of great influencers out there, but there are a few bad apples spoiling the barrel and the trouble is, everyone goes down once the trust is undermined.”
The announcement comes four months after Weed made waves by threatening to pull investment from digital platforms such as Facebook and Google if they did not take steps to improve consumer trust and eradicate “toxic” online content.
It also comes as Unilever and rival Procter & Gamble audit their advertising spending and agency relationships in efforts to operate more efficiently as sales growth of consumer packaged goods slows. They are working with fewer agencies, creating fewer ads and bringing some marketing work in-house.
(REUTERS)
