Brand and influencer – how to work with a creator?

Brand and influencer – the perfect pair?

The influencer marketing market is still growing strong, although – it cannot be denied – it is going through a certain kind of crisis. A crisis that stems, among other things, from unclear rules of cooperation between brands and online creators. Companies are investing more and more in campaigns using social media, often forgetting to properly protect their interests. The time has come to bring order to the influencer confusion. Experts from AdWise Group offer tips on what to pay attention to when establishing cooperation with a blogger, Instagrammer or YouTuber.

When deciding on activities with online creators, two issues should be considered first – their authenticity and ability to engage. It is worth remembering that the industry is constantly evolving – more and more influencers and campaigns featuring them are appearing. In 2017, this market was worth $3 billion in 2017 and $4.6 billion in 2018. It is estimated that this year it will reach $6.5 billion – according to the Influencer Marketing Hub 2019 Study.

How to secure a contract with an influencer?

After deciding to cooperate with a given creator, the time comes to regulate it – preferably in as much detail as possible. The world of influencers is dynamic, you need to act quickly – there is no such word as "later" here. That is why the creator chosen by the brand – due to the constant rush – may fail to fulfill the concluded contract. Therefore, it should be remembered that the contract must be concluded in writing. This is the best way to secure the company's interests and protect your brand. This can be, for example, a cooperation agreement or a barter agreement, but it should always regulate the question of how the influencer should advertise a given product and brand.

It is worth specifying in detail what behaviors are permitted in this regard and what are not, so that the online creator knows what is within their obligations under the contract, and also so as not to expose the brand to the risk of image violation or damages. The contract can specify, for example, which social media may be used to promote the brand and whether the product is to be promoted through photos, videos, blog posts, etc. – Barbara Bil, advocate, Bil Law Firm (AdWise Group)

It is also worth regulating in the contract that the influencer, when promoting the brand, cannot infringe the rights of third parties, e.g. use someone else's trademarks without having the appropriate consents.

License and non-compete clause

What else should be included in the contract so that you can sleep soundly? It should definitely also include the license granted to the influencer to use the trademark. It is very important to define the scope of how it may be used by the influencer. However – importantly – it is not worth imposing a rigid scenario of activities. The brand should care about attracting potential customers thanks to the power of influence and authenticity of the influencer.

Authenticity is a "must have", one of the strongest trends of recent years. As increasingly younger generations enter the consumer market, credibility is becoming an increasingly required element of brand image. As indicated by Criteo Shopper Story research, authenticity is one of the five key values involved in making purchasing decisions. Combined with the development of technology, this became the reason for the explosion in popularity first of bloggers, then vloggers, and finally influencers. – Joanna Gajewska, Managing Director, Animise (AdWise Group)

It is also worth clearly regulating the non-compete clause. The person chosen by the company should not simultaneously cooperate advertising-wise with another, related brand. It is necessary to clarify whether during the term of the contract the influencer may promote other products with similar properties. Finally, it should be specified whether the influencer will receive remuneration for promoting the brand/product.

Cooperation with an influencer undoubtedly helps in promotion, but not everything always goes according to plan. An online creator is only human, who also makes mistakes or engages in actions that are not always consistent with the views of a given brand. There are many examples of such situations. Recently, there was quite a lot of talk about an Instagrammer who destroyed a post-war sculpture of an angel in Dolinki Szwajcarskie Park in Warsaw. In this case, the brand that had undertaken an advertising cooperation with the influencer removed all advertisements featuring her and terminated the contract with her. Being an influencer and proclaiming controversial theses can end a career in a moment and cross out advertising contacts. Such was the case with a well-known cyclist who can no longer boast of successful promotional cooperation.

Although influencer marketing is usually discussed in the context of successful cooperation, from time to time something may grind in the relationship between the creator and the company. That is when a properly structured contract comes in handy. – Barbara Bil, advocate, Bil Law Firm (AdWise Group)

When can cooperation be terminated?

In the contract, it is worth specifying the situations in which the brand may terminate cooperation with the online creator and on what terms this may take place. What are the options? The contract may be terminated with immediate effect when a well-known person commits significant breaches of the concluded contract, such as actions to the detriment of the brand. Applying such a mode allows cooperation with the influencer to be ended very quickly. A longer notice period can also be used, e.g. one month. Customarily, it is added to contracts concluded for an indefinite period, taking the form of, among others, framework agreements. The danger of using this type of termination is associated with the possibility of terminating the contract by either party at any time, that is, in practice even before the project is completed. Therefore, it is worth adding a provision to the contract stating that in the event of termination of the contract during the project, the influencer's remuneration will be paid proportionally – only for what was performed until the notice period expires.

Summary

The article by AdWise Group experts indicates that the key to effective cooperation between brands and influencers is a precise, written contract regulating the scope of promotion, the trademark license and the non-compete clause. The creator's authenticity remains a supreme value – as shown by Criteo Shopper Story research, it influences consumers' purchasing decisions. It is worth remembering that the influencer marketing market is growing: from $3 billion in 2017 to an estimated $6.5 billion in 2019.

However, experts warn against image risk – controversial behavior by creators, such as the destruction of a sculpture in Warsaw, may prompt brands to terminate the contract immediately. The contract should therefore provide for termination modes, including immediate termination, and proportional remuneration in the event of project interruption.