Facebook Inc (NASDAQ:FB) is working on incorporating more strictness into celebrity profiles for celebrities who market products and services on the social media platform.
Facebook introduced the new regulations in April for companies and brands. The social media company now plans to extend the rules to the celebrity profiles as long as their accounts are verified. The branded content regulations require companies, celebrities and publishers to tag posts that have been paid for by sponsors using the advertiser’s name to clarify their relationship. This means that if a celebrity posts content from a company which is paying him or her, then the celebrity should include a tag of the company’s name.
The move highlights Facebook’s aggressive marketing strategy with the aim of changing how celebrities make money through branded content. The new regulations are designed to let popular personalities optimize their earnings. Advertisers, verified individuals, and publishers will thus get an opportunity to get the most out of their promo content. The move will also allow Facebook to earn more from paid-for advertising content.
The firm does not earn direct revenue from branded-content deals. However, the new changes are designed to make advertisers pay for sponsored posts on its social media platforms. The company has roughly 1.7 million users on its Facebook social platform. The new rules are also designed to make sure that the company, as well as its partners, does not go against government regulations.
“Publishers and influencers will continue to remain responsible for understanding their legal obligations to indicate the commercial nature of the content that they post,” pointed out Facebook in one of its statements.
The new Branded Content Policy imposed by Facebook gives it the right to bring down posts that are found in violation of the terms and conditions. The policy also prohibits third party products, banner ads in images and videos, among other things. Sponsors are also not supposed to appear in a profile picture or the cover photo of a verified profile.
Facebook stock closed the latest trading session at $131.04.
