Sponsorship Disclosure in Social Media Influencer Marketing: The Algorithmic and Non-Algorithmic Barriers

Abstract

The growth of social media influencer marketing has created sophisticated opportunities for deceptive marketing practices to proliferate online. While sponsorship disclosures alert consumers to the commercial nature of social media content and are required in different jurisdictions around the world, many influencer ads do not incorporate disclosures that comply with applicable laws. Building on Bourdieu’s theory of field as the theoretical lens, this research examines the disconnect between formal regulation and on-the-ground influencer marketing practices in Canada by investigating the current barriers to compliant sponsorship disclosure. Using semi-structured interviews with influencer relations professionals, who play an intermediary role between brands and influencers, the research explicates the (1) algorithmic challenges (e.g., algorithmic deprioritization or shadowbanning) and (2) non-algorithmic challenges (e.g., lengthy disclosure processes) to maintaining high disclosure standards. The research identifies the strategies influencer intermediaries can use to achieve upfront and conspicuous disclosure in a social media landscape where the algorithmic determinants of success are unpredictable, and the adaptation of applicable legal frameworks is traditionally slow.