TikTok via Unsplash.
Beware those TikTok "story-time" videos about bad boss interactions or terrible relatives. They are likely really ads in disguise, breaching the AANA Code of Ethics and deceiving audiences.
The point of reveal is that there are many clips out there telling the same story. A host of creators, working to a script, are showing the same outrage storyline.
Influencers can get commissions or 30% or more when they get customers to sign up for various services. And that's on top of any fee to do the video.
We Are Social APAC CEO Suzie Shaw told AdNews that these videos drive short-term engagement but come at the cost of brand trust.
“These videos are designed to feel like organic stories rather than advertising,” said Shaw.
“They are scripted to look like workplace drama, personal confessions or genuine recommendations because people are more likely to stop in the feed, engage and believe them when they don't immediately recognise them as advertising.
“That may drive short-term attention, but it comes at the expense of brand trust.”
Under Section 2.7 of the AANA Code of Ethics, advertising must be clearly distinguishable as advertising.
This means advertising should not be presented in a way that disguises its commercial nature, including on social media. The technology, or platform doesn't matter.
“Australian rules already require advertising to be clearly identifiable, and commercial content that isn't disclosed may breach Australian Consumer Law and the AANA Code,” said Shaw.
“TikTok also provides disclosure tools and requires creators to label branded content. The challenge is enforcing the rules at the speed and scale of social.”
Eight in ten (84%) of Australians believe influencer advertising should be disclosed, while around one in five Australians are not confident, they could identify paid content, according to Ad Standards.
Around three-quarters of Australians said disclosure would have a neutral or positive impact on their perception of a brand or influencer, while around four in five said failing to disclose would negatively affect their perception.
Social Soup founder and executive director Sharyn Smith said that these creators don't disclose because disclosure would undermine the entire model.
"This style of content only works if it feels organic, so the moment you label it as an ad, the rage bait loses power," said Smith.
"Many brands running affiliate programs aren't monitoring how creators are driving traffic.
"The brand is liable for this content because the commercial relationship exists, and we need to see rulings that make brands more accountable for how their affiliates attract attention.
"The broader influencer industry has made real progress on compliance and disclosure through Ad Standards. Affiliate marketing with creators is a newer frontier and needs the same attention.
"It will come into alignment, and this style of advertising will fade. I'd also put it back on the platforms; if users are reporting these accounts as scams, the platforms should be shutting them down."
Ad Standards executive director Greg Wallace said advertising is most effective when consumers trust what they are seeing.
“Clear disclosure isn't just about complying with the rules, it's about respecting audiences and maintaining confidence in advertising as a whole,” Wallace said.
“Transparency supports trust and credibility for both brands and creators.
“Regardless of the format, if content is advertising, consumers should be able to recognise it as advertising.
“Transparency isn't just good practice - it's good business.”
Advertising disclosure is not only addressed through the industry codes.
It may also raise issues under the Australian Consumer Law, which prohibits misleading or deceptive conduct.
Where businesses fail to meet their obligations under the law, the ACCC has powers to investigate and take enforcement action.
"If advertising is directed at Australian audiences, it must meet the same standards of transparency and responsibility as any other advertising on any other platform," said Wallace.
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