What is Marketing Compliance?
Marketing compliance refers to the practice of creating marketing or advertising campaigns that meet or comply with legal and regulatory requirements put in place to protect marketers and their consumers.
Marketers may also create and enforce their own marketing compliance guidelines to ensure partners, such as influencers or affiliates, communicate their brand’s messaging accurately.
Non-compliant marketers lost an average of more than $5.1M due to disruptions in business
Businesses that enabled compliance technology saved an average of $1.45M in compliance costs
69% of executives are not confident that their current risk management practices will be enough to meet future needs
3 Out of 4 Ad Campaigns Deliver Ads Adjacent to Brand-Inappropriate Content.
Don’t be one of them. Talk to an advertising compliance expert today.
How Does Marketing Compliance Work?
There are a variety of rules, laws, and regulations in place to protect both marketers and consumers from risks such as false advertising and stolen ad spend. Marketers have also been known to create their own set of compliance or brand safety guidelines to ensure their brands are represented properly by third-party partners.
These marketing guidelines typically include mentions of FTC regulations, in addition to specific language partners should or should not use when representing the marketer’s brand.
Some marketers employ in-house compliance or legal teams to ensure their marketing communications remain compliant across all third parties; others outsource their marketing compliance management to an agency or network to lighten the load on their in-house teams.
As tedious as marketing compliance implementation may seem, non-compliant businesses averaged a loss of more than $5.1M in revenue in 2020 alone. Marketing compliance not only saves brands from paying financially, but it also drives invaluable customer trust.
The finance industry experienced major shifts in 2020 in response to Covid-19, resulting in the demand for finance apps to grow. As marketers bank on the future of fintech, compliance is an essential component for continued success.
Compliance standards are centered around providing consumers with a transparent buying experience. This is especially crucial in the fintech space, as financial security continues to be top-of-mind for consumers. Finance brands are required to enforce an in-depth vetting and compliance process to satisfy FTC and Financial Industry Regulatory Authority (FINRA) guidelines. When developing compliance guidelines, there are several important factors to consider. Check out the Compliance for Finance Marketers infographic to learn more about what finance marketers should consider when creating their compliance standards.
Learn to Navigate the Compliance Pitfalls of Finance Marketing
Federal Marketing Regulations
The Federal Trade Commission (FTC) has set several regulations and guidelines in place to ensure all marketers comply with the same set of standards. The most well-known of these regulations include:
Advertising & Marketing Basics:
- Marketing claims must be truthful, cannot be deceptive or unfair, and must be evidence-based.
Endorsements, Influencers, & Reviews:
- All endorsements must comply with the FTC Act and Endorsement Guides.
- All influencers must disclose any monetary or material connections related to their relationship or contractual agreement with the marketer.
- Any review site housing consumer reviews must comply with the Consumer Review Fairness Act.
What is Ad Fraud?
Ad fraud can take many forms but the end goal is always the same – to drive fraudulent traffic or conversions to a marketer’s campaign in order to steal ad spend. For marketers looking to gain a better understanding of how to protect their campaigns, it is important to first understand which shapes fraud can take.
Employing an in-house Compliance team can help mitigate your risk of ad fraud. If you’re not able to employ an in-house team, major networks and agencies often offer compliance monitoring, partner vetting, and anti-fraud technology with campaign management. Contact Perform[cb]’s team of compliance experts to learn about how you can better secure your campaigns today.