Our Take: Paid Partnerships on Instagram

You might have noticed a small number of influencers and celebrities using a new feature on Instagram to show that the post was sponsored by a company. The new “paid partnership with” sub-header was introduced months after the Federal Trade Commission sent out dozens of letters to celebrities and influencers to warn them that their paid posts didn’t include sufficient disclosures.

Though the feature is still new and has a limited number of users, it’s already made a huge difference when scrolling through your Instagram feed. You don’t have to search through the caption for “#ad” or “#sponsored.” 

The “paid partnership with” sub-header also makes the influencer or celebrity more trustworthy. The use of this feature, makes the user more upfront with his/her followers. Some influencers or celebrities try to disguise the “#ad” in the caption and it can wind up coming across as confusing or misleading.

From a business standpoint, this tag allows both the business and the influencer, or celebrity, to access the data and analytics from the post. This is a turning point for businesses who are paying to have their products featured in the posts because they can see the statistics first hand and not have to rely on the influencer for this information.

Though not that many influencers and celebrities have started using the “paid partnership with” sub-header, we hope this feature will significantly lessen the number of FTC violations as well as increase trust level between influencers and their followers. For now, this feature really changes the game and we're excited to see where it takes utilizing the platform as a viable source of income.