Influencer marketing has taken the world by storm. If you are a social media influencer with a growing, loyal following, you may soon have brands lining up to collaborate. You've smashed it, and that's awesome! However, it's essential to understand the rules for disclosing ads on social media. Otherwise your content could come under scrutiny by the Advertising Standards Authority - just ask Molly Mae Hague...
On social media, if you promote a brand that is paying you, it is classed as an advertisement. You must disclose the partnership clearly in any relevant posts, stories, videos or livestreams, using terms like #ad or #sponsored. This ensures transparency and compliance with consumer protection laws.
Capture Accounting has you covered with this helpful guide to disclosing ads and brand partnerships on your platforms. We'll go over the rules on what is considered an advertisement feature and how to disclose it to help keep your social media content squeaky clean and your audience well-informed.
For specialist accounting advice, contact the experts at Capture Accounting. We specialise in accounting for social media influencers and know your business. That means we can offer valuable advice and help you save money, stay compliant and grow your business.
You bet. Rules on ad disclosures are just that - rules - not suggestions! The Advertising Standards Authority (ASA) and the Competition and Markets Authority (CMA) are serious about making sure consumers know when they're seeing a paid partnership or branded content as opposed to organic posts.
Consumer protection law is all about ensuring that marketing communication is fair and not misleading. Influencer marketing must adhere to the Code of Non-broadcast Advertising and Direct & Promotional Marketing, mercifully abbreviated as the CAP Code.
When an influencer receives payment, free products, or any other incentive to promote a brand, it's considered an advertisement. The CAP Code is enforced by the ASA and requires that such relationships be made immediately clear to the audience. This transparency helps consumers make informed decisions and maintains the integrity of influencer marketing.
At the end of the day, consumers deserve to know if your endorsement is authentic or influenced by a brand partnership. Your followers are your customers and livelihood, so disclose ads to not just keep you out of legal trouble but to treat them with respect and earn their trust.
Different countries have their own advertising rules, but the principle remains the same: transparency is key. In Dubai, influencers must comply with the UAE's National Media Council regulations, which also mandate clear ad disclosures. Ignoring these rules can lead to penalties and damage your reputation, so always play it safe.
Interested in making the move to Dubai to grow your social media influencer business? Check out our blog for essential info and tips on moving to the UAE.
Sponsored content refers to any of your posts on social media platforms where you promote a brand and get something from it, be it money, products or travel. If you're making money from it or receiving some sort of benefit, then it is advertising, and you must include full disclosure in your post.
Sponsored Content Type | Why it needs AD disclosure |
---|---|
Paid Posts | Where you’re directly paid by a brand to make a post about them |
Free Products or Services | Which you receive from a brand in exchange for promoting them |
Affiliate Links | Links where you get a commission when a sale is made through them |
Brand Ambassador | Where you collaborate with a brand over a longer period |
Directorship or Shares | If you own or are a director of the brand you are promoting |
If you fail to disclose brand partnerships and ads, you could come under fire from the ASA, CMA, Trading Standards and the platforms themselves.
All of this will do nothing for your personal brand and reputation. Plus, your brand partner will no doubt be unimpressed, and you could wave goodbye to a lucrative deal.
The keyword is clarity. An ad should stand out clearly from your other posts.
It should be immediately obvious to the reader that they are looking at sponsored content. They shouldn't have to scroll through previous posts, visit your profile page, click on a link for more info, etc., etc. Don't bury the disclosure in a list of hashtags or present it so it can't be seen clearly against the background.
Your relationship with the brand should be clear and explicit from the start of your post. Put yourself in the reader's shoes and ask yourself if there is any doubt about it being sponsored content. If it feels like cheating, it probably is!
The ASA advises using a term that readers understand, like #Ad, #Advert, #Advertising, #Advertisement, #AdvertisementFeature. You don't actually have to use a hashtag as long as the word is clearly set apart from the main content of the caption and comes at the top of the post.
They advise steering clear of potentially ambiguous terms like 'supported by', 'gifted', and 'in association with', as these could be misunderstood. Also, simply tagging the brand or including personalised discount codes alone won't cut it. You must use one of the acceptable terms to disclose the ad clearly.
Some platforms have built-in disclosure tools to make the task easier. Let's take a look at the specifics of each platform in more detail.
By following these guidelines, social media influencers can stay compliant with ASA rules, build and maintain trust with their audience, and continue to grow their brand successfully.
Remember, transparency is the name of the game in influencer marketing, and proper ad disclosures are a big part of that. For a thorough overview of the rules on ad disclosure, see the ASA guide.
Managing your finances as a social media influencer can be challenging, especially when you have multiple revenue streams. At Capture Accounting, we specialise in helping content creators and social media influencers like you.
From tracking income, gifts and expenses to handling tax and financial planning, we're here to ensure you stay compliant and profitable. Our services are tailored to your unique needs, so you can focus on creating amazing content while we handle the numbers.
Ready to get started? Contact us today, and let’s arrange a consultation to discuss how we can save you money and help you shine even brighter.
Frequently asked questions about AD disclosures
Yes, as you are earning money from them. Use straightforward terms like "ad", "affiliate link", or even "I earn a commission from sales through this link" to leave no room for doubt.
Put the disclosure prominently near the affiliate link itself, either within the text or directly following the link.
When they see a post raving about a product, consumers deserve to know if the influencer is simply a fan or is getting paid to promote it. This transparency builds trust.
Imagine recommending a restaurant to a friend, only to find out you were secretly paid to say it was good! Disclosures level the playing field and help you make informed decisions based on genuine opinions, not sponsored ones.
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Reza is the Founder of Capture Accounting and also a content creator himself. He spends most of his time coaching and mentoring other accounting firm owners to build more profitable firms and do better for clients. You'll find him very active on LinkedIn.
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