With the recent increase in influencer marketing, previously unknown companies have gained more authority and legitimacy while forming lasting relationships with their audiences, creating long term customers. Its recent success has caused many brands to partner up with powerful market influencers and market themselves on several different social media sites.
Taking advantage of this trend, Instagram will soon introduce a special paid partnership tag for the stories and posts related to influencer marketing. The photo-based social media platform explained that it aimed to further its endeavour in connecting people with similar interests, which isn’t limited to personal account users. Instagram is set on making it more clear when paid advertising is being shown to its users.
The paid partnership tag was tested out on the platform in March of this year, and the finished product is expected to arrive in July or August. Of course, consumers aren’t the only ones who need to know about the tag and what it entails - it’s equally as important for brands that are active on Instagram to understand the ins and outs of the new feature.
This new tag will increase the transparency of paid content, much the same way YouTube personalities must explicitly state who sponsored their latest video. Consumers can then learn more about the product or service if they’re interested, and the company providing that product or service can benefit.
Of course, the company’s benefits aren’t always immediately economic. Clearly showing that its content was sponsored can build new connections with potential customers and strengthen connections with the customers it already has. The likeability of a company is largely based on how honest it is.
Honesty also helps brands follow the rules of the Federal Trade Commission. Many companies reportedly left out their promoting or partnership with other companies, resulting in the Federal Trade Commission delivering dozens of letters to these policy violators.
Arguably the most exciting bonus for companies who use the paid partnership tag is the granted access to influencer content data. All parties involved will be able to view the data of their content to track its success and discover the spots where improvement is needed. Instagram Insights will show content creators their data just as it did before, while partnered companies can view their shared data on Facebook Page Insights. Both of these tools give brands great power to accommodate the needs of their target audience.
For companies who are worried about how the tag works, adding it will be quick and easy, as the Add Partner option will soon be found under the Tag People function. Any post with the tag will display the tag in an obvious way. The regulations for the tag and the repercussions for disobeying these regulations have not yet been defined, but are in the process of being developed.
Instagram’s paid partnership tag won’t be suitable for every company, but it certainly expands the horizons of advertisers on the platform. Determine your business’s goals and see if it’s right for you.