YouTuber back advertisement controversy in Korea in 2020

YouTube back advertisements are false advertisements in which celebrities and YouTubers introduce products as if they were purchased even though they received advertisement fees from companies. This is because subscribers trust more of the reviews they have purchased and used rather than publicly paid and publicized advertisements.[1]

The start of the controversy

Kang Min-kyung at Incheon International Airport

The back advertisement controversy started with stylist Han Hye-yeon (한혜연). On July 15th, a media called Dispatch investigated celebrities' YouTube back advertisements, the result being that many celebrities such as Han Hye-yeon (한혜연), Kang Min-kyung (강민경) were receiving products without informing their viewers.[2] She, who produced a video titled "I gave my money and bought it,'' was heard to have received products worth tens of thousands of dollars which were featured in several videos without disclosing that these videos were sponsored.[3] However, it was controversial because it did not display paid advertisements on YouTube videos.[4] On July 17th, two days after the controversy was reported, Han Hye-yeon (한혜연) posted a video of an apology for the hidden advertisement controversy on YouTube.[5]

Subsequently, singer Kang Min-gyeong (강민경) was also found to have been included products on some of her videos without disclosing that they were sponsored. Two days after the controversy, on July 17th, Kang Min-kyung left a post on Instagram and apologized.[6]

YouTuber's Revelation

July 21, 2020, YouTuber 'Charm PD'(참피디) said the names of the YouTubers who were receiving products without informing their viewers in his video. The controversy over the hidden advertisements spread from entertainers to YouTubers. In this controversy, especially eating YouTubers were mentioned a lot. The following article is the full text of the article posted by Charm PD(참피디).[7]

Thank you again to all of you who have been with me until the end of this morning. I think there are a lot of things I couldn't tell you about, so I write with a heavy mindset. To tell you this, we have to go back to the story of 2018. At that time, I was just growing up as a YouTuber, so I didn't know much about the flow of YouTuber activities in Korea. However, in 2019, as many full-fledged high-priced advertisement requests came in from me, I learned the true flow of this ecosystem. To tell you the truth, in 2019, there were few cases in which a number of YouTubers (based on YouTubers receiving high-priced advertisements) proudly disclosed and executed the advertisements they received. It was terrible. Honestly, I wanted to reveal everything at the time, but I didn't want the result of the whole ‘Mokbang Youtuber’(먹방 유튜버) category going into a mangle, so I wanted to stay true to my position as much as possible, but it was not difficult to condone this messy reality. At some point, as I received excessive love, I was able to enter their own space that I felt I could not dare to see. I learned a lot of facts that I had never seen before, and this was far beyond my imagination. After the list of illegal behind-the-scenes YouTubers was released through the Fair Trade Commission, I was shocked by how many YouTubers released their advertisement details one after another. Now, I'm sick of the behavior of YouTubers who show their authenticity by displaying paid advertisements. I have been targeting all the time, even though I said that there were no back advertisements countless times, but rather, the YouTubers who achieved high profits through the back advertisements see the reality of being recognized as a clean YouTuber, making myself a happy YouTuber life I was getting closer to the conclusion that I can't. So, I don't think I can lead a stable review YouTube life in the current situation. Since the past (before the issue of the Fair Trade Commission), I have continuously suggested to my agency the'Clean YouTuber Campaign' collaboratively conducted under the support of the 'Fair Trade Commission', but it is not difficult to get a definite answer yet. In conclusion, due to this ‘Shusu's TV(슈스스 TV) incident,’ it is thought that no one will appreciate the authenticity of YouTubers in the future, and it is revealed that we cannot proceed with the YouTube platform for the time being. For my two years and five months, I have endured with only one conscience, and I do not come up with any solution to overcome this deprivation. I'll take a break. I sincerely apologize to all those who have believed in me. While I was producing over a thousand videos, I had never pretended to be My Donnaesan, and I just wanted to not be ashamed of my past that I had done with our two sons. After I found out that this environment was at this level, I couldn't tell myself about it. I don't think I can go back to reviewing right now. I will carefully consider whether I can come back after clearing my mind. Thank you. All of the fans who have supported me with love so that I can continue to live. I am really sorry. If, after calming your mind, this ridiculous YouTube flow can give you a little breath because of my writing, I will come back then. Sorry.[8]

The result of YouTubers related to the back advertisement

Famous food YouTubers such as Tzuyang (쯔양), Embro (엠브로), Moon Bok-hee (문복희), and Hamji (햄지) posted an apology every day and admitted they've also performed 'back advertisements' on several on their videos. On August 4th, a video titled "I'll tell you about the advertising issue" was posted on Tzuyang's (쯔양) YouTube channel, the video containing an apology stating, "There are some videos that have not been marked with advertisements," and "I am sorry for being ignorant in the beginning." Hamji, who has 3.7 million subscribers, posted an apology regarding the controversy over the hidden advertisements through the YouTube channel community on August 3, confirming that the videos that were advertisements were missing, and said that she edited the video by entering 'paid advertisement' in the more information section of the video. One day after, YouTuber Moon Bok-hee, who has 4.7 million subscribers, apologized through her YouTube channel community, saying, "There is some dishonest part of displaying advertisements." Moon Bok-hee announced that she had omitted the advertisement by marking the advertisement as a sponsor or by providing different information in 'More' and 'Comment' sections of their channel. On the 5th, Mbro posted a post on his YouTube channel saying, "I apologize for the back advertisement." He has been vaguely displaying advertisements through 'more' and 'comment'. In response, Ambro admitted to his fault, saying, "I deceived the viewer." Other exposed YouTubers posted apology videos.[9] However, their subscribers showed a cold reaction to the hidden advertisements in some of their videos. Most of the YouTubers all at once added comments to several of their videos, clarifying that it was a paid advertisement, and tried to correct the situation, but public opinion did not subside.[10]

The number of subscribers for YouTubers affected by the controversy who have continued broadcasting have decreased significantly. In the case of Mukbang YouTuber A, on August 3rd, before the controversy, their highest number of subscribers reached 4.7 million. However, after the controversy, 370,000 subscribers left by the 25th. Mukbang YouTuber B, who boasted 1.69 million subscribers, had their subscribers decreased to 1.25 million. On August 6th, just after the controversy, the number of views recorded 1.95 million, an increase of 1.32 million compared to the previous month, but on the 25th, it was only 32,489, a 96% decrease from the previous year. Although the number of subscribers remains unchanged, there are cases where the number of views has plummeted. YouTuber C had 3.77 million subscribers on August 4th, but the number of subscribers on the 25th increased to 3.9 million. However, the number of views fell sharply. On the 2nd, before the controversy, when Mr. C uploaded a new video, the number of views increased by 39% to 5.16 million. On the 24th, after the controversy, even though a new video was posted, it was only 3.71 million, a 4% increase from the previous year.[11]

Some YouTubers quit broadcasting.[12] Mookbang YouTuber Tzuyang, who has 2.68 million subscribers, announced her retirement, saying, “I will not be doing any more broadcasting activities” due to the controversy regarding hidden advertisements. On the morning of the 6th, Tzuyang posted a video and a post saying 'I will finish the YouTube broadcast' through her YouTube broadcast. Tzuyang recently apologized for several times when controversy over the “back advertisement” that did not mark it even though it was broadcast using advertising expenses and sponsorship products arose. She also said, "I will never come back", saying that she was tired of the comment culture spreading false information.[13]

Aftermath

As the controversy grew, the government met with YouTubers and held a meeting to prevent hidden advertisements.[14] The Fair Trade Commission, YouTubers and MCN companies attended there. On August 24, 2020, Chairman of the Fair Trade Commission, Cho Seong-wook, met with the MCN industry and influencers at the Chamber of Commerce and Industry in Jung-gu, Seoul, and held a 'Conversation to Prevent Unfair Advertising on Social Network Service (SNS)'. This event was set up to ensure that the MCN industry and influencers expressed their will to comply with the issue of 'back advertisement (unfair advertisement on SNS)' and that they would not repeat the same controversy.[15]

The Fair Trade Commission issued guidelines related to back advertisements. In accordance with the revision of the guidelines for reviewing display advertisements on recommendation guarantees, etc., advertisement display guidelines for postings and posted videos have been applied not only to power bloggers, but also to Instagram and YouTube influencers [16] In addition, it was announced that rather than immediately entering into regulation, after a certain period of guidance, the management and supervision would be conducted through a separate monitoring manpower. An official of the Fair Trade Commission said on September 12, "There are many cases of unintentional violations of the law because they do not know the contents of the revised guidelines for review." He said, “We plan to have a period of instruction first.” He added, "However, if there is a case that repeatedly violates the law or suspects intentionality even after sufficiently promoting it, we will punish it." The revised bill contains content that requires social media influencers to clearly disclose phrases such as 'received sponsorship' and 'this is an advertisement' when posting content such as product reviews and so on. In accordance with the amendment, influencers should write down the content that they 'received economically' when uploading content in a location where consumers can easily find it, using an appropriate font size and color. Ambiguous phrases such as 'experience group' and 'Thanks to' are prohibited. YouTube content should include a phrase at the beginning or end of the post title or video to indicate that it has received an economic price. On Instagram, you must display the content of the economic consideration in the picture. When the photo and the body are linked so that consumers can easily recognize it, they can be displayed in the first part of the body or the first hashtag. In addition, a penalty of 2% or less or 500 million won or less of related sales or revenue is imposed on businesses that advertise unfairly. If the prosecution measures are taken, they could face up to two years in prison or a fine of up to 150 million won. The term 'business owner' here usually means an advertiser who requested an advertisement, but the Fair Trade Commission believes that it is possible to punish influencers who have earned considerable profits as 'business owners.' [17]

Examples from other countries

When the controversy over the back advertising of famous influencers arose abroad, each country is taking action. In the United States, as the controversy over the “back advertisement” of influencers continues, there is a discussion that not only advertisers but also platforms should be punished. Rohit Chopra, a standing member of the Federal Trade Commission (FTC) of the United States, issued a statement in February that "we need to create a bill that will hold social media platforms and advertisers that are benefiting enormously from influencer marketing."[18] According to the legislative investigation office of the National Assembly, in Japan, the focus is on self-regulation, such as making guidelines in the private sector.[19] France is fined up to two years in prison or 300,000 euros to influencers who advertise behind the scenes. In Belgium, the authorities can forcibly delete advertising videos without advertising marks, and fines up to 80,000 euros.[20]

References

  1. ^ 기자, 김송이 (2020-08-06). "'내돈내산' 제품이라더니 결국엔 '협찬'… 유튜브 달구는 '뒷광고' 논란" [It’s a product that I bought with my money, and eventually “sponsor”… "YouTube's back advertisement" controversy]. 조선비즈 (in Korean). Retrieved 2020-11-02.
  2. ^ 기자, 김지호, 송수민 (2020-07-15). "[단독] "내돈내산? 남돈내산!"…강민경·한혜연, 유튜브 장사의 실체" [[Exclusive] "I gave my money and I bought it? Like I bought it with other money!"... Kang Min-kyung and Han Hye-yeon, the reality of YouTube business.]. 디스패치 (in Korean). Retrieved 2020-10-28.
  3. ^ 기자, 한상범 (2020-08-19). "'대국민 사기극' 뒷광고의 세계" [The world of the back advertisement for “People's Scam”]. 일요시사 (in Korean). Retrieved 2020-09-28.
  4. ^ 기자, 고재완 (2020-07-16). "'내돈내산'의 역습…강민경X한혜연 PPL논란→비난으로 끝내선 안되는 이유" [Kang Min-kyung X Han Hye-yeon PPL controversy → The reason why criticism should not end]. 스포츠조선 (in Korean). Retrieved 2020-11-02.
  5. ^ 기자, 최보란 (2020-07-17). "한혜연, 고개 숙여 사과 "혼란 드려 죄송...질타 마음에 새기겠다"(공식)" [Han Hye-yeon bows his head and apologizes "Sorry for the confusion... I'll keep it in mind for criticism" (Official)]. YTN (in Korean). Retrieved 2020-09-29.
  6. ^ 에디터, 오기쁨 (2020-07-17). "강민경, PPL 논란 사과 | 보그 코리아 (Vogue Korea)" [Kang Min-kyung, PPL apologizes for controversy.]. Vogue Korea (in Korean). Retrieved 2020-09-29.
  7. ^ 기자, 김민지 (2020-08-08). "유튜브 뒷광고가 도대체 뭐길래?" [What is the YouTube back ad?]. 헤럴드경제 (in Korean). Retrieved 2020-11-02.
  8. ^ 기자, 김현덕 (2020-07-21). ""참PD 입니다. 유튜버 광고 생태계에 대해 폭로하겠습니다"" [This is Charm PD. I will expose the YouTube advertising system.]. 위키트리 | 세상을 깨우는 재미진 목소리 (in Korean). Retrieved 2020-09-28.
  9. ^ 기자, 김자아 (2020-08-05). "참피디 '뒷광고 폭로'에…수백만 유튜버들 줄줄이 '사과'" [Charm PD's 'back advertisement exposure'... Millions of YouTubers line up'Apologized']. 머니투데이 (in Korean). Retrieved 2020-09-29.
  10. ^ 기자, 정지원. ""믿을 놈 하나 없네" 문복희,나름,쯔양,상윤쓰, 뒷광고 논란에 '여론 철퇴'" ["There is no one to believe" 'criticism of public opinion' in controversy behind advertisement]. joynews24 (in Korean). Retrieved 2020-09-29.
  11. ^ 기자, 노윤주. "구독자·조회수 급락한 유튜버들…9월부터 뒷광고 사라질까?" [YouTubers who have plunged in subscribers and views... Will back advertisements disappear from September?]. Decenter (in Korean). Retrieved 2020-09-29.
  12. ^ 기자, 성소의. "꺼지지 않는 '뒷광고' 논란... 업계 떠나는 유튜버들" [Controversy about'back advertisement' that never ends... YouTubers leaving the industry]. 폴리뉴스 (in Korean). Retrieved 2020-11-04.
  13. ^ 기자, 김진선 (2020-08-06). "'뒷광고' 논란, 먹방 유튜버 쯔양 '방송활동 안하겠다, 악플에 지쳐'" ['Back advertisement' controversy, eating YouTuber Ziyang(쯔양)'I will not broadcast, I am tired of bad comments']. 서울경제 (in Korean). Retrieved 2020-09-29.
  14. ^ 기자, 윤지혜 (2020-09-24). "인플루언서, 공정위 만나 '뒷광고' 근절 약속" [Influencer meets Fair Trade Commission and promises to eradicate'back advertisement']. inews24 (in Korean). Retrieved 2020-11-04.
  15. ^ 기자, 강종민 (2020-09-24). "'뒷광고' 논란 후 유튜버 만난 조성욱 "적응 기간 이후 법 엄정 집행"" [Jo Sung-wook meets YouTuber after'back advertisement' controversy "Strict law enforcement after adaptation period"]. newsis (in Korean). Retrieved 2020-09-29.
  16. ^ IT 칼럼니스트, 이요훈 (2020-09-28). "유튜브 뒤흔든 '뒷광고'…"앞으로 유료 광고 정확히 표기"" [YouTube'back advertisement' controversy... "In the future, paid advertisements are accurately marked"]. YTN 사이언스 (in Korean). Retrieved 2020-09-29.
  17. ^ 기자, 차지연 (2020-08-12). "9월부터 유튜브 '뒷광고' 금지…공정위 "계도기간 후 처벌"" [YouTube'back advertisement' banned from September... Fair Trade Commission "penalties after the transition period"]. 연합뉴스 (in Korean). Retrieved 2020-11-04.
  18. ^ 기자, 하선영, 장주영 (2020-08-13). "'뒷광고' 유튜버만 잘못? 미국, 플랫폼도 처벌 추진" [Only'back advertisement' YouTubers are wrong? U.S. platforms also push for penalties]. 중앙일보 (in Korean). Retrieved 2020-10-29.
  19. ^ 기자, 박광연 (2020-08-11). "유튜브 '뒷광고' 뿌리 뽑기…자진 시정 우선, 규제 입법 추진" [Rooting YouTube'back advertisements'... Prioritize voluntary correction, promote regulatory legislation]. 경향신문 (in Korean). Retrieved 2020-10-29.
  20. ^ 기자, 고은이 (2020-08-28). "규제 사각지대 '뒷광고' 논란" [Controversy over regulatory blind spot'back advertisement']. 한국경제 (in Korean). Retrieved 2020-10-29.

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