Prepare for paid partnerships

The shift away from traditional forms of advertising (such as billboards and broadcast media) towards social media is driving a huge increase in the use of online influencers and strategic brand partnerships to promote a broad range of goods and services. This is particularly notable where advertisers are targeting Millennial and Gen Z consumers, who are often more engaged and receptive to effective digital content.

While these increasingly popular means of marketing can be cost-effective in reaching both new and existing consumers on a global scale, they raise commercial and legal challenges which must be carefully considered.

Strategic brand partnerships are most effective when bringing together brand names with complementary values. We have seen this in many recent collaborations between hotels and luxury fashion brands, including Missoni and Dior, and French artist Thomas Lélu, who was commissioned by W Hotel to create exclusive accessories for guests.

Hollywood star Harrison Ford starred in a 12-episode series called ‘Once Upon a Time in Scotland’ for Glenmorangie, a Highland single malt Scotch whisky

Such collaborations, which should always be underpinned by robust legal agreements, are most likely to succeed when there is strong brand alignment. This includes consistency between both partners’ image and values that will also resonate with those of their target audience.

Gleneagles’ partnership with heritage British luxury fashion house Barbour, to create a limited-edition wax jacket marking the iconic hotel’s centenary, was an example of successful brand alignment. The collaboration celebrated the brands’ rich histories, showcasing their shared values of tradition and quality.

With online influencers being used more frequently to promote brands, advertisers might need to adopt a fresh mindset. While brand-owners would typically want sign-off on content, such collaborations work best where the storytelling conveyed by the influencer is both positive and authentic. To achieve this balance, a contract setting out objectives, outputs, approval processes, and methods of monitoring return on investment is essential.

When promotional material is created for a campaign, it’s important to put in place advance agreements clarifying who owns that content and who has the right to edit or repost it.

When a brand ambassador or celebrity influencer is engaged, there is the further issue of image rights to be addressed. Influencers will rightly want assurances that they retain rights to their own image.

Love it or loathe it, Harrison Ford has been appointed brand ambassador for Glenmorangie whisky, starring in a campaign promoting the brand to a significant online audience. Two famous Scots, David Tennant and Emile Sandé, have also created a song and music video to promote The Macallan’s legacy. There’s little doubt the stars will have been afforded appropriate controls over use of their image and other intellectual property in legal agreements underpinning these partnerships.

Legal compliance and having appropriate liability provisions in place are other key considerations as UK ads must meet advertising standards, be clearly identifiable as advertisements, and comply with consumer protection laws.

Finally, perhaps most importantly, it is highly advisable to put legal protections in place in the event of one party wanting to end a collaboration. Public perception of a particular brand or celebrity influencer can dramatically change, with negative publicity turning what was a positive affiliation into a toxic one overnight.

Putting in place clear rights to quickly terminate a brand or influencer partnership is therefore essential, along with rights to take remedial action, including editing or removing social media posts.

Engaging with wider audiences through brand partnerships and online influencers provides an exciting and effective opportunity. Ensuring risks are appropriately addressed is key to a long and successful partnership.

Kimberley Cross is a Senior Associate, CMS​