Upsides, too
Despite levying a possible disruption to engagement, a warning label on social media could usher in positive outcomes for advertisers, too.
“I’m hopeful,” said Jen Willig, co-founder and CEO of social impact agency WRTHY. Willig, like Murthy, does not see a label as a cure-all, but rather a message that could grow awareness of problems on social media and lead to new legislation. Brands would benefit from the outcomes of a healthy ecosystem, Willig said, in which young users would be less fearful of dangers and other chaos that could meet them on various platforms, and thus more comfortable to explore.
And should a warning label kickstart congressional action to clean up social media, brands would also have to worry less about harmful content that may appear beside their ads, Willig said. This issue has plagued advertisers on platforms such as X, and is becoming an even greater issue as a result of the rise of AI deep fakes that can be difficult to identify as fraudulent.
Covert sees a warning label compelling brands to sharpen their influencer strategies. Her thinking is that if young users end up spending less time on platforms, marketers would need to ensure their outreach is even more effective.
“If there’s less time, then we need to be more strategic about who we pick,” she said.
Social media is a significant driver of wasteful spending on digital advertising; brands lost $140 million in 2023 on Facebook and Instagram alone, according to a report by agency Next&Co. Covert believes the effects of a warning label could help to galvanize brands to take their wastage more seriously.
Lisa Jammal, CEO of Social Intelligence Agency, is also optimistic about a warning label. She thinks it could be a welcome authority amid a score of platform-specific policies, many of which have been criticized for being ineffective. These siloed attempts have also forced advertisers to require a different, and sometimes conflicting, strategy for each platform.
With a universal guideline, “[marketers] are going to feel like there’s more control,” she said.