Data-Driven Influencer Selection: FTC Compliance and ROI Maximization

Navigating FTC guidelines is a core component of brand safety in the modern age of influencer marketing.

Tyler Coppock
5
min read
Data-Driven Influencer Selection: FTC Compliance and ROI Maximization
Table of contents:

Navigating FTC guidelines is a core component of brand safety in the modern age of influencer marketing. The Federal Trade Commission (FTC) is a U.S. government agency responsible for protecting consumers and promoting fair competition in the marketplace. In the context of influencer marketing, the FTC plays a crucial role in ensuring transparency and preventing deceptive practices. In short, we’ll let FTC commissioner, Rohit Chopra, explain it: 

“When individual influencers are able to post about their interests to earn extra money on the side, this is not a cause for major concern. But when companies launder advertising by paying an influencer to pretend that their endorsement or review is untainted by a financial relationship, this is illegal payola.”

This means that brands and creators have to be authentic when there is compensation for the influencer post. Without transparency to the general public, brands and influencers risk fines, suspensions, or even banishment from social media. 

One of the main questions that we get asked at Popular Pays is how we ensure that a brand complies with FTC regulations, and that all of their relationships with influencers are industry safe. 

When a creator agrees to participate in a campaign with Popular Pays, they agree to comply with all FTC regulations. Each brand that partners with Popular Pays is also assured that no creator content is posted publicly without the approval of the brand first. 

Great example for transparency methods: #ad & “I’m partnering with..."

Brands can maintain transparency with a few methods, such as #ad, a disclosure like “I’m partnering with” or the Paid Partnership tool on Meta. 

As influencer marketing continues to grow, and as brands expand their scale of creator partnerships, brand safety will become more important than ever. 

3 examples of creator content being repurposed to maximize long-term value

When a brand partners with an influencer, a few questions are always at the top of everyone’s mind: 

  • How much will this cost 
  • How will we assess performance 
  • What data will be available to us 

However, brands also want to learn about content usage rights, and creators want to protect their creative from being used beyond an agreed-upon time period. 

With Popular Pays, rights to the content are negotiated before any creator relationship is finalized. Brands and creators know how long the brand has rights and where the content can be repurposed. 

Creator marketing is a modern tool that bridges the gap between a brand and an audience. It’s an authentic message delivered to an engaging community. However, it’s also a place where brands can scale their content library faster, and more efficiently than ever before. 

FLVR–all of the content on this page is populated with creators from popular pays
Frito Lay TV commercial–creators created a TV commercial during COVID 

Cap’n Crunch- A creator recipe on a bag

Maximizing ROI with Data-Driven Influencer Selection

When influencer marketing truly began to take form in the way that we think of it today, the performance was upper-funnel brand awareness. 

Likes, comments, and follower counts were the primary statistics in the 2010’s. But now, markets are tracking clicks, conversions, impressions, and purchases. 

Now, more than ever, brands can drive lower funnel sales and conversion. As influencer marketing has grown, so have the tools that are available to marketers. TikTok Shop and click to cart on Meta are almost habitual tools to the general consumers. 

But how does a brand know that a creator is the right fit for them before choosing to partner with them? 

When choosing a partner on the Popular Pays platform, a brand will have access to the creator’s audience demographics, including age, sex, and geography. A brand will also know how many paid gigs a creator has recently worked on, and how many impressions they receive per post. An engagement rate will be provided prior to creator selection, and so will an authenticity rating that tracks the % of fake followers a creator has. 

Before selecting any creator on Popular Pays platform, all of this data will be made available to the brand up front. This allows brands to truly understand their vision for success, and to choose creators who will bring that vision to life.

Interested in learning more? Visit https://popularpays.com/request-demo 

Tyler Coppock
Tyler is a Client Partner at Popular Pays.
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