Digital Marketing is one of the biggest marketing as per reports these days. The whole world relies on the digital era whether it’s a promotion of the product or giving links in between the websites to redirect traffic on your site, the digital marketing kills it all.
But many of the influencers don’t introduce affiliate marketing on social channels like they never disclose affiliate links on the channels like YouTube and Pinterest despite the fact that Federal Trade Commission has announced in the year 2013 that everything should be open up loud and clear about affiliate marketing the compulsion was there on the links that all the links should be disclosed on the social while whether you are running a channel on YouTube or posting a picture on Pinterest, if there is an affiliate link the respective person has to disclose.
But, in the recent study at Princeton University, more than 3,000 videos contained about 18,000 affiliate links but overall the percentage which was disclosed was only the 10% of videos and 7% of the pins were only disclosed. And above all none of the pins and videos contained coupon codes and none of the links follow any sales referral affiliate links.
According to Federal Trade Commission, The closer [the disclosure] is to your recommendation, the better. Putting disclosures in obscure places – for example, buried on an ABOUT US or GENERAL INFO page, behind a poorly labeled hyperlink or in a “terms of service” agreement – isn’t good enough. Neither is placing it below your review or the link to the online retailer so readers would have to keep scrolling after they finish reading. Consumers should be able to notice the disclosure easily. They shouldn’t have to hunt for it.”
And on the other hand, according to the Princeton Researchers, “Explanation disclosures – which the FTC recommends – only appear in 1.82% and 2.43% of affiliate content on YouTube and Pinterest respectively.”
As per reports out of four big companies which play affiliate marketing in the best manner only two were following the guidelines as per Federal Trade Commission. Companies are about four they are Aliexpress, Amazon, Rakuten and Commission Junction.
But there are many hidden risks for all the brands as FTC could sue the companies for not following the guidelines, the influencers who are playing this safe game and not following the guidelines might be exposed with their brands soon by the FTC and which will only result in the failure.
This is the time where Digital Marketing is facing several blow heads in the business, so these kinds of liberties or the smart game which influencers are playing might give a sad ending to the affiliate marketing in the future.