Thanks to the continued prominence of social media in people’s daily lives, it is no surprise that more familiar marketing strategies such as celebrity product endorsements would update for the current era. Recently, social media advertising has practically entered the realm of science fiction with the introduction of computer-generated influencers. These avatars are created to sell, but who is responsible if they fail to comply with advertising laws?
Nearly 40% of publishers using native advertising are not compliant with the Federal Trade Commission’s (“FTC”) guidelines; this figure has improved from one year ago, when only 30% of users were following the guidelines. In 2017 alone, the FTC estimates that the revenue generated from native advertising will total $20.9 billion, with an estimated 610 new advertisers each month this number is projected to increase to $59 billion in 2018. The number of corporations using native advertising has increased over the years because of social media platforms like Instagram and Facebook, where much of the in-feed content is paid or sponsored.