The news: Social media influencers are earning thousands of dollars for promoting beauty products and apparel, but increasingly, many are pushing bitcoin scams to their followers, per CNBC.
The problem: Influencers occasionally conceal the fact that the crypto ventures they’re advocating are sponsored. That’s a serious problem, since it encourages audiences to make financial decisions under false pretenses.
The bright spot: Categories such as crypto may be more likely to pull back on influencer marketing as part of broader budget cuts, notes principal analyst Debra Aho Williamson.
Why it matters: Nearly four in five (78%) adults say creators are influential in helping them discover new brands, per Meta research conducted in nine countries including the US, UK, Germany, and Japan. But to maintain their influence, creators need to issue disclosures when warranted—and be able to vouch for the products they are promoting.