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Engage with your marketing team to avoid influencer marketing risks

Caroline Franco is Ethics and Compliance Manager in the European Regional Operating Unit of Boehringer Ingelheim in Amsterdam.

With the increasing threats of banner blindness and ad blockers, influencer marketing has been constantly on the rise and has established itself across all industries. This marketing technique enables companies to collaborate with individuals with specialized knowledge, expertise, authority, and/or reach on social media by leveraging their unique voice and message-delivery styles. These individuals—called influencers—insert brands or products in their social media posts to initiate electronic word-of-mouth engagement with a tuned-in audience—their followers.

Harvard Business School predicts marketers to spend $15 billion on this method by 2022,[1] which means that influencer marketing commences to preempt traditional advertising budgets. However, influencer marketing poses regulatory and reputational risks and has the potential to hurt the core values of your organization. It is therefore time for the compliance profession to help our organizations navigate through the ethics and compliance risks. In this article, I will walk through the differences between influencer marketing and more traditional techniques while focusing on content management, remunerations, disclosure requirements, and crisis management.

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