Turns out, consumers trust traditional ads more than influencer endorsements. A new survey of 3,700 U.S. adults by the National Advertising Division (NAD) found that while 58% have made purchases based on influencer content, more than a quarter said they don’t trust influencer marketing at all—compared to just 11% who distrust advertising. The main issue? Transparency. A sizeable 64% of consumers said they’re skeptical when influencers don’t disclose sponsored relationships, and 70% said they feel negatively toward influencers who hide the fact that they were paid or gifted products.
Hashtag disclosures like #ad or #sponsored aren’t cutting it either. Nearly 6 in 10 consumers admit those labels don’t increase trust, and 80% say they simply want influencers to be honest and upfront—especially when it comes to brand deals. In short, authenticity can’t be faked with a hashtag. This trust gap is especially concerning with influencer budgets still on the rise, indicating that brands may be throwing money into a channel that consumers are growing weary of.
Recent high-profile cases—including those involving Kevin Hart, JPMorgan Chase, and Fabletics—show that even celebrities aren’t immune to scrutiny. NAD cited a recent uptick in legal pushback as well: five class-action lawsuits in six months, all stemming from influencers failing to disclose paid partnerships. One particularly spicy complaint accuses Revolve-affiliated influencers of disguising ads while pushing products at premium prices. NAD now says it’s developing training and certification to help influencers clean up their act—and maybe win back some trust.
Read more at AdWeek.