Abu Dhabi tightens grip on Influencer Marketing
ADDED aims to create a transparent and accountable influencer marketing landscape within Abu Dhabi.
Abu Dhabi: The Abu Dhabi Department of Economic Development (ADDED) is tightening its grip on social media influencer marketing within the Emirate. A recently issued circular urges all licensed economic establishments to strictly adhere to established controls and conditions when engaging with influencers for advertising purposes.
Who are Influencers?
Social media influencers are individuals who have established credibility and audience reach on social media platforms like Instagram, YouTube, TikTok, etc. They leverage their online presence to promote products, services, or even ideas to their audience.
Influencer marketing is a marketing strategy that involves collaborating with these social media influencers to reach a target audience. Businesses partner with influencers who align with their brand and target market to create sponsored content or product placements. This content can be in the form of photos, videos, stories, or even live streams.
Compliance requirements
While acknowledging the efforts of businesses in fostering a positive economic environment, ADDED has outlined several key compliance requirements:
Influencer licensing: Social media influencers must obtain a license from ADDED to offer advertising services through websites. This ensures they operate within legal boundaries and consumer protection regulations.
Establishment permits: Economic establishments themselves need to secure a permit from ADDED for any form of advertising, including promotional and marketing activities. This ensures transparency and accountability within influencer campaigns.
Valid licenses for all parties: When contracting with influencers and social networking sites, establishments must confirm they possess valid licenses issued by ADDED. This prevents collaborations with unlicensed entities, protecting both businesses and consumers.
If the law is breached?
The stakes are high for non-compliance. ADDED has outlined a table of violations, with penalties ranging from AED 3,000 to AED 10,000 for breaches. These financial consequences underscore the seriousness of these regulations.
Moreover, ADDED has warned of potential closure for establishments that consistently disregard the rules. This sends a clear message that influencer marketing must operate within a legal framework for the benefit of all stakeholders.
This move by ADDED signifies a growing trend among regulatory bodies worldwide to address the complexities of the influencer marketing industry. By establishing clear guidelines and enforcing compliance, ADDED aims to create a transparent and accountable influencer marketing landscape within Abu Dhabi.