This week, NAD released Influencer Trust Index: Consumer Insights 2025. The report starts by noting that last year, 82.7% of marketers in the US leveraged influencers in creative campaigns, driving the influencer marketing industry to a $24 billion domestic valuation. Despite this growth, a survey commissioned by NAD suggests that the industry faces serious challenges.
Although the data show high consumer engagement with influencers, the data also show that consumers are suspicious of influencer campaigns. In fact, although 87% of consumers surveyed trust company ads, only 74% trust influencer ads. The primary driver of distrust is a feeling that some influencers are not genuine, honest, or transparent.
The data show that 70% of consumers reported feeling negative toward an influencer if they found out that the influencer got paid or received free product to promote a brand and the influencer didn't disclose it. As we've noted in previous posts, some consumers don't just feel negative, they also file lawsuits.
The report suggests that influencers can build trust by disclosing their connections to the brands they promote. Although some brands worry that consumers will trust an influencer less if they know the influencer has partnered with the brand, the data suggest that's not the case. In fact, 70% of consumers stated that a partnership with a brand does not make an influencer less trustworthy.
Based on this report, requiring influencers to clearly disclose their connections to the brands they promote doesn't just make good legal sense, it makes good business sense.
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