Ad labelling is the practice of marking content clearly as advertising, so the audience knows it is paid for before they engage with it. On social media it usually means an “Ad” or “#ad” label at the start of a creator’s post when a brand has paid for it, given something in return, or controlled what it says.
How ad labelling works
In the UK two sets of rules apply. The CAP Code, enforced by the Advertising Standards Authority (ASA), requires marketing to be obviously identifiable as marketing. Consumer protection law, enforced by the Competition and Markets Authority (CMA), treats hiding the commercial nature of content as an unfair practice. The two regulators publish joint guidance for influencers and brands, and the message is consistent: if it is an ad, say so, clearly and up front.
A post generally counts as an ad under the CAP Code when the creator receives something (a fee, free products, commission through affiliate links, discounted services) and the brand has some control over the content, such as approving it or setting key messages. Where a brand sends a product with no conditions and no control, the CAP Code may not apply, but consumer law still expects the relationship to be made clear.
The label itself should be:
- Clear. “Ad” or “#ad” is what the regulators point to. Tags such as #sp, #spon, #collab or “thanks to…” are too ambiguous.
- Up front. At the start of the caption or visible on the image or video, not lost among hashtags or hidden below the “more” cut.
- On every relevant piece. On Stories and other short-lived formats, where someone may see a single frame, label each frame that features the brand.
Platforms add their own tools, such as Instagram’s paid partnership label. These help, but the ASA has indicated that a platform label on its own may not be prominent enough. The safest approach is to use the platform tool and an upfront “#ad” together. In short, disclosure is the duty to be open about the commercial relationship, and the label is how you meet it on the post.
Why it matters
Both the creator and the brand are responsible. The ASA names brands in its rulings, not just influencers, and the CMA can act against businesses that fail to make paid content clear. Under the Digital Markets, Competition and Consumers Act 2024, the CMA can now decide consumer law breaches and fine businesses directly, rather than having to take them to court first.
There is a trust cost too. Audiences are quick to spot undeclared promotion, and a post that looks like a hidden ad can do the brand more harm than no post at all.
Common mistakes
- Vague tags such as #spon, “in collaboration with”, or #gifted on a post that was actually paid for.
- Hiding the label in a block of hashtags at the end of the caption.
- Labelling only the first post of a paid series, or only the first Story frame.
- Forgetting affiliate links, which make a post an ad when the creator earns commission.
- Assuming small accounts are exempt. The rules apply whatever the follower count.
- Leaving it all to the creator. The brand shares responsibility, so the brief should require the label.
How to act on it
Write labelling into every creator agreement and brief: “Ad” or “#ad” at the start of the caption, on screen at the start of any video, on every Story frame that features the product, plus the platform’s paid partnership tool. Check posts when they go live and keep screenshots. If you also run a creator’s post as a paid ad, the ad delivery shows it as sponsored, but the original organic post still needs its own label.
Before any influencer marketing campaign, read the current ASA and CMA guidance for influencers, which both regulators update from time to time. When I turn creator content into partnership ads in Instagram ad campaigns, checking the label on the original post is part of the launch checklist.