COMS 427 Blog post #1 Instagram and native advertising.

Native advertising refers to “any paid advertising that takes the specific form and appearance of editorial content from the publisher itself” (Wojdynski and Evans, 2016, p.157). This can be manifested through any medium, but we would like to focus on two pertinent and relevant examples of native advertising on Instagram: that of Mr. Bags, and the resurgence of multi-level marketing schemes.

Source: Mr. Bags

Mr. Bags, A.K.A. Tao Liang, is a Chinese social media influencer. He is ranked number three as the top blogger in China by Exane BNP Paribas (Mr. Bag, 2018), and was named a ‘30 under 30’ by Forbes Asia (Forbes 2018). He is known for his ability to instigate sales of hundreds of thousands of dollars in only minutes (Chitrakorn, 2018) by mobilizing his fanbase of wealthy Asian customers. He does this not through celebrity status alone, but by understanding the Chinese market and developing a relationship of trust between brands and customers. The brands trust his advice in introducing new models to the Chinese market and his fans trust his opinion and recommendations. In the words of Business of Fashion, Mr. Liang is successful because he offers “a more clever, independent voice.” (2018). But to what extent is Mr. Liang an independent voice? He is paid for his efforts through a multiplicity of revenue channels, including the promotion of the brands and products he helps to sell.

The next example that will be examined is the contemporary instance of multi-level marketing schemes on Instagram. According to a 2018 article by The Atlantic, “there are more MLM companies in 2017 than there have ever been before”. What is interesting in the article is that the premise of multi-level-marketing companies has existed since Avon in the 1950’s, and despite being the subject of constant government regulation and a general notion that they are not profitable, they have been reincarnated on social media platforms. Platforms like Facebook and Instagram allow for the synthesis of networking and marketing (Kaplan & Haenlein, 2010, p. 64) , the two ingredients needed for ‘direct sales’ business models. Despite this perfection in medium, the business model is still flawed, and as a result, “most of those consultants aren’t making much money — if any at all.” (Nelson, 2018).

Source: Lularoe

In conclusion, the infiltration of native advertising on social media platforms signals the need for media literacy. Chinese luxury customers should be aware that Mr. Bags is not an independent voice and has just as much interest in selling products as the companies behind those products. Furthermore, the friends, family, and coworkers of individuals involved in multi-level marketing schemes should be aware that what may seem like a kind gesture of reaching out, may actually be a thinly veiled business opportunity.

Whether or not social media functions as “an extension and explosion of traditional word of mouth networks” (Sajithra and Patil, 2013, p. 69) is in some ways less important than it being perceived as such. Word of mouth marketing (WOMM) is traditionally thought of as one of the most trustworthy forms of communication (Whitler, 2014), so what does it mean when this basic, primal form of communication is being infiltrated with paid content, sometimes without the knowledge of the audience?

Source: I-SCOOP 

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References:

Kaplan, A. M. & Haenlein, M. (2010). Users of the world, unite! The challenges and opportunities of Social Media. Business horizons,n 53 (1), 59–68.

Sajithra, K. & Patil, R. (2013). Social media—history and components. Journal of Business and Management, 7 (1), 69–74.

Wojdynski, B. W & Evans, N. J. (2016). Going native: Effects of disclosure position and language on the recognition and evaluation of online native advertising. Journal of Advertising, 45(2), 157-168. 032719