Instagram[edit]
Instagram Sponsored Posts, also known as "Influencer Marketing"[6] in Instagram is a form of promoting a brand or product through popular celebrities or influential people. Particularly in Instagram, accounts with a lot of followers accept payments to have other people's contents featured on their page for the sake of promotion to a larger audience. Sponsored post prices of the top influencers on instagram can command 6-figure fees, with some reaching millions for a single post.[7] This method of advertising became very popular but was done in private through direct transactions rather than through a legitimized medium like Instagram where it can be legally documented. As such the content being marketed is not being regulated very well. The Federal Trade Commission sent over 90 letters to influencers that they need to properly disclose that they are being sponsored by a brand or product.[8][9]
Now, Instagram is seeking to change the transparency of this method of advertising and is launching a new tool for that purpose. Upon the submission of a sponsored post, there will be a visible tag at the top “Paid Partnership With Sponsor Name”. This will allow a more legitimized form of promotion between the influential users of Instagram and the brands willing to get their name out.[10]
After reports began circulating that Instagram shows posts to only a small percentage of users' followers, Instagram released a statement denying it is doing any such thing.[11]