Is this an ad? How influencers disclose paid content after a change in the law

Abstract

As of July 2022, the Spanish government explicitly requires influencers to disclose commercial content. However, there is no standardised model for this. This study, therefore, analyses how influencers disclose paid content and whether any significant changes came into being after the law came into force. For this purpose, a content analysis was conducted on 903 Instagram publications with brand mentions from 40 Spanish influencers. The results demonstrate that posts without any disclosure tag decreased by 25.12% following the law's implementation. Within this context, there is an observed 23.04% increase in the use of adwords (ADW) within the text and a slight increase (2.08%) in the exclusive use of Instagram's integrated paid partnership label (PPL). Despite previous studies having demonstrated that PPL is the most effective means of identifying persuasive communication, it is confirmed that its usage remains in the minority (7.19%). Likewise, most ADWs are located at the end of the caption (86.86%), remaining hidden at first sight for mobile users. Furthermore, it is observed that clear identification of commercial content by influencers is rewarded with higher organic engagement.