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  • Writer's pictureHinton Magazine

After Sec Settlement Brands & Influencers Now Need To Be More Transparent

Ssil Dayri, marketing specialist comment how influencers working with brands will be under a new era of scrutiny.

Kim Kardashian / PHOTO INTAGRAM @kimkardashian (Mario Sorrenti/Stuart Weitzman)

The family you know and love with TV all-access into their lives. Kim, Khloé, Kendall, and Kylie ... have a solid hold of public relations but it is clear this same effect has reverse consequences when it comes to financial regulation.

The SEC announced it had reached a $1.3 million settlement with Kim over her post promoting the crypto asset. Although the post mentioned the often used “#Ad,” the Kardashian should have also included that she was paid for the post.

With over 1 billion monthly active users, Instagram is a promising social stage to capitalize on, generate leads and sales. Marketers who use Instagram enjoy many benefits such as insights and feedback from customers, high engagement rates, trackable leads, and the opportunity to reach untapped audiences that others are missing.

After the SEC fined Kim, it is clear it was a message to be passed on to the industry and now the influencer sector could face more rigorous scrutiny.” comments Assil Dayri director of A.M.D Consulting Group agency specialized in digital marketing, social media & customer acquisition.

Assil Dayri Copyright Courtesy Kiko Gaspar Communications

The SEC is always looking for a way to get the message out to the public, and when someone like Kim Kardashian, who has a huge following, makes a mistake it's a big deal for the regulator and a stand was made.

With this week's events, all influencers should be keeping up with the Kardashian”, the tumble was a landmark! Say the marketing expert Assil Dayri. It is clear that influencers working with brands will be under a new era of scrutiny. Given this thriving industry that has been put under the microscope. While they represent a new way for consumers to interact and form new relationships with brands, they also have the potential to mislead or cause harm.

It seems advertising-standards regulators are still drawing up the limits of what’s adequate, while many brands are coming together to set their own principles. “Now is a good time for industries to run-up on the current legal landscape surrounding influencer publicity and to ensure they are well equipped to utilise influencers in the most effective way”. advises Assil.

Consumers also have less trust in influencers as they understand how a lot of them think about the financial aspect of the transaction rather than the value it brings to the audience. Influencers end up working with the brands that allocate the most to the influencer rather than working with the ones providing the best products or solutions.

So many brands are now investing in micro-influencers to address this challenge and work with authentic creators that will also help create videos and build more awareness. “We can’t forget that 61% of consumers trust the product recommendations they get from influencers. Meanwhile, only 38% trust branded social media content” remakes the AMD Consulting Group CEO,


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