Unilever announced that it would not work with influencers who buy followers and said that its brands would never buy followers of its own.
The consumer goods colossus Unilever, which is a force in global advertising, has taken a stand against the use of social media "influencers".
Influencers, who often buy followers on sites like Facebook and Instagram, can be paid to write about products - sometimes in the form of celebrity endorsements. But they typically do not reveal that they receive money.
Unilever has called on the marketing industry to stop working with them. And it laid out steps to distance itself and its brands from influencer accounts.
Such influencers and brands often buy accounts or followers to boost a product's visibility and popularity online, inviting criticism about a lack of transparency that can deceive consumers.
Earlier this week, Unilever announced that it would not work with influencers who buy followers and said that its brands would never buy followers of its own.
The company also said it would prioritise working with partners to increase transparency and eradicate misleading marketing practices.
Unilever chief marketing officer Keith Weed said it's common for fast-growing industries to have "a dark side," and added that influencer marketing is an increasingly important way for brands to reach consumers.
"However, some bad apples risk spoiling the barrel by undermining trust through bad practices like as fake followers, bots, fraud or any dishonest business models," he said. "At best, this is misleading and at worst, it's fraudulent."
Unilever is one of world's largest advertisers with brands including Dove, Lipton tea, Axe and Ben & Jerry's ice cream. The company spent nearly US$9.5 billion (NZ$13.7b) in 2017 marketing its brands, and of that, about US$2.4b (NZ$3.46b) on digital advertising.
Influencers can reap tens of thousands of dollars on one-hit promotions alone. An August 2017 study by Rakuten Marketing showed that British marketers working on influencer programmes were willing to pay celebrities on Facebook up to, or more than US$100,000 (NZ$144,261) for a single post giving a shoutout to their brand. When it came to fashion marketers, fees per post hit more than US$210,000 (NZ$302,949).
Advertising companies often work with influencers without buying followers or fake accounts. Weed declined to tell Reuters how much Unilever paid its own influencers.
This week's announcement follows Weed's earlier calls for the industry to distance itself from dishonest practices and rebuild consumer trust. In February, Weed warned that Unilever could pull its ads from online platforms like Facebook and YouTube if the tech giants didn't police divisive content on their sites. He also pledged that Unilever would not work with online platforms that fuel hate or divisions, or that endanger children.
Speaking at the Interactive Advertising Bureau's Leadership Meeting in California in February, Weed said the marketing industry had to commit to improving transparency "in an era of fake news and toxic online content."
In the speech, Weed said the year 2018 presented the opportunity for companies like Unilever to "rebuild trust back in our systems and our society" and said the company was working to verify all of its media on all platforms worldwide.
But ultimately, Weed said, consumers are less concerned with "third-party verification" than they are with fake news or Russian meddling in US elections.
Weed said consumers cared less about "ad targeting via complex algorithms" but do react when they know their data isbeing misused and stolen.
Weed said Unilever was also committed to "creating responsible content," including by tackling gender stereotypes in advertising.
"No longer can we stand to one side or remain at arm's length just because issues in the supply chain do not affect us directly," Weed said in the speech.
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