The Federal Trade Commission (FTC) requires creators to disclose paid promotions in their videos. As the creator industry has grown, brands have increasingly paid creators to promote their products.
In response, the FTC has updated its guidelines, making it clear that creators must disclose any financial relationship with a brand that might influence their content. However, as reported on first by Tubefilter, these rules do not seem to apply to song promotion.
Song campaigns on TikTok
Billboard recently explored the trend of “sound campaigns,” where musicians, labels, or promoters pay to have their music used in TikTok videos. A major label marketer shared that “75% of popular songs on TikTok started with a creator marketing campaign.”
The issue arises when these videos, despite being paid promotions, do not always include a disclosure. Often, musicians or promoters don’t ask creators to make specific content, and the creators simply use the song in the background of their usual posts. This makes it unclear if these posts should be labeled as ads.
When asked by Billboard, the FTC explained that because no direct claims are made about the songs in these videos, disclosure may not be required.
They noted that viewers can decide for themselves if they like a song based on what they hear. For now, the FTC does not explicitly demand that creators disclose paid song use, although each case might be evaluated individually.
In 2020, labels were paying top creators tens of thousands of dollars to perform choreographed dances to new songs.
Now, creators can still earn around $10,000 per video, but many music promoters prefer to spread their budget across multiple smaller creators. Microinfluencers, those with fewer than 10,000 followers, can earn as little as $25 for using a song.
What this means for musicians and creators
Independent musicians trying to go viral on TikTok are competing with sound campaigns backed by significant marketing budgets. This puts them at a disadvantage. However, for creators, partnering with musicians offers a new way to earn money.
