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Paid influencers must label some posts as ads, German court rules

reuters.com

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Re: Paid influencers must label some posts as ads, German court rules

#31

Post by cwkoss »

xqcgrek2 wrote: post #23
ajhurliman wrote: post #17

Earlier quoted context omitted.

Sponsored content is the main income for creators, so if a platform banned it there would be a mass exodus and they'd lose their dominance.

But they would earn more money from regular ad revenue, presumably. You're painting a rather bleak picture -- that the majority of creators/influencers' content is advertising. If that's the case, I'm not sure why Youtube/Instagram should also tolerate that -- it's basically spam on their platform they haven't curated through their ad network.

I don't think most influencers can make a living with just ad content. Many are using sponsorships and ada and barely getting by.

Re: Paid influencers must label some posts as ads, German court rules

#32

Post by Cederfjard »

xqcgrek2 wrote: post #23
ajhurliman wrote: post #17

Earlier quoted context omitted.

Sponsored content is the main income for creators, so if a platform banned it there would be a mass exodus and they'd lose their dominance.

But they would earn more money from regular ad revenue, presumably. You're painting a rather bleak picture -- that the majority of creators/influencers' content is advertising. If that's the case, I'm not sure why Youtube/Instagram should also tolerate that -- it's basically spam on their platform they haven't curated through their ad network.

> But they would earn more money from regular ad revenue, presumably.

I’m not sure why you would presume that. Also, product placement has been a standard feature of entertainment for a long time. I don’t see why you’d expect Google and Facebook to be the ones to take a stand on this, after all this time.

Re: Paid influencers must label some posts as ads, German court rules

#33

Post by djur »

xqcgrek2 wrote: post #23
ajhurliman wrote: post #17

Earlier quoted context omitted.

Sponsored content is the main income for creators, so if a platform banned it there would be a mass exodus and they'd lose their dominance.

But they would earn more money from regular ad revenue, presumably. You're painting a rather bleak picture -- that the majority of creators/influencers' content is advertising. If that's the case, I'm not sure why Youtube/Instagram should also tolerate that -- it's basically spam on their platform they haven't curated through their ad network.

The platform is essentially getting a cut -- their own ad revenue -- from content producers who are financially supported via sponsorship/paid content. Right now it's just economically not feasible for the platforms to force themselves into that sponsorship relationship without risking an exodus of their most profitable users. And Google doesn't really want to be in the business of individually managing influencers' relationships with brands, anyway.

Re: Paid influencers must label some posts as ads, German court rules

#35

Post by hutzlibu »

xqcgrek2 wrote: post #23
ajhurliman wrote: post #17

Earlier quoted context omitted.

Sponsored content is the main income for creators, so if a platform banned it there would be a mass exodus and they'd lose their dominance.

But they would earn more money from regular ad revenue, presumably. You're painting a rather bleak picture -- that the majority of creators/influencers' content is advertising. If that's the case, I'm not sure why Youtube/Instagram should also tolerate that -- it's basically spam on their platform they haven't curated through their ad network.

Spam is something nobody wants. The influencers videos quite some people want to see despite their sneaky ads. So youtube gets views, too.

Re: Paid influencers must label some posts as ads, German court rules

#36

Post by colinmhayes »

zinekeller wrote: post #22
stickfigure wrote: post #16

Isn't there a jurisdictional problem here? I can't imagine anyone outside of Germany paying any attention to this.

Unless you're in Germany or specifically targeting Germans, nope. But some people are interested in these type of topics, especially when compared to (for example) America's lax policies (but it can't beat America's very lax policies on sponsorships in television and movies).

Even if you're specifically targeting Germans. I don't see how international influencers could be judged against.

Re: Paid influencers must label some posts as ads, German court rules

#37

Post by paxys »

xqcgrek2 wrote: post #10

Why does YouTube or Instagram tolerate sponsored content? They don't get a cut from a sponsored video or product placement, and their dominance in the advertising space means this is also cutting into their ad revenue.

Because then they would have to pay content creators themselves.

Re: Paid influencers must label some posts as ads, German court rules

#38

Post by Bayart »

xqcgrek2 wrote: post #10

Why does YouTube or Instagram tolerate sponsored content? They don't get a cut from a sponsored video or product placement, and their dominance in the advertising space means this is also cutting into their ad revenue.

Their dominance in the ad space means content creators aren't able to make a living without sponsorships and other sources of revenue (merch, patreon).

Sponsorships on Youtube exploded when ad revenue cratered.

Cut sponsorships away and you're basically killing the ecosystem.

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