(synthesizer music)
- And as always, like and subscribe,
and we'll see you guys next time.
- [Director] Fantastic, good job, Myles.
- [Myles] Cool, cool, cool.
- [Director] But we need you to have a little bigger smile this time,
a little bit bigger, nice.
And we've got a new beard oil sponsor,
so we have to promote that,
so hold that right up to your face.
Give us a nice, big smile, perfect.
(upbeat jazz orchestra music)
(upbeat rock music)
- [Myles voiceover] When I think of YouTube,
I think of real people making videos
about stuff they're passionate about,
and then sharing them with the world.
But at the same time, I'm seeing a lot
of product placement and promotion in video these days.
It's getting hard to tell the difference between
what creators genuinely like and what they're just selling.
So I've come to Anaheim, California for VidCon,
the biggest YouTube event of the year
to ask fans, experts, and other YouTubers,
can you trust what's on YouTube?
Why do you trust what you watch on YouTube?
- Hmm, that's a good question.
I don't look for a truth, I guess,
I just kinda look for entertainment.
- Sometimes, depends on the YouTuber,
but sometimes I don't really trust them.
It's like, sometimes they lie in their videos
or they like to make things up.
- I don't know, you kinda have to put this weird trust
in people when they're doing things.
Their work speaks for itself in ways.
I feel like if someone actually is good at what they do,
they don't have to be like, I'm the best photographer.
You'll just see in their work.
- If you're a YouTube star, it's no secret
that you can make some serious money.
The top 10 combine to make over $120 million in 2017.
They're making some good money off of ad revenue,
but that's just one way to make money.
The advertising world refers to many
of the stars on YouTube, Instagram,
and other social media platforms as influencers,
because they have their own homegrown fan bases
that they've been interacting with for years.
To capitalize on that fan base,
companies pay these influencers
to promote their product or service.
If the channel's on the smaller side, that could just mean
some free stuff or a few hundred dollars,
while some big brands pay top YouTubers hundreds
of thousands of dollars, and that's just for one video.
Let's take a look at what being an influencer looks like.
- So a dry shampoo that I have really been liking is
this one from Dove, it is the
Refresh+Care Invigorating Dry Shampoo.
This guy right here is great for refreshing your style
because it absorbs oil and it also leaves
your hair feeling clean and full of body.
- Ingrid Nilsen is a top beauty and lifestyle YouTuber
with over four million subscribers.
Now, I'm sure she likes Dove shampoo,
but Dove is also paying her really good money
to promote their product.
Companies love these kinds of sponsorship deals
because they get to connect their brand
with the YouTuber's loyal fan base.
Influencers are changing the way that advertising is done.
Dwindling TV viewership means 30-second television spots
no longer reach the audiences that they once did.
Banner ads on websites can totally be bypassed
by ad-blocking software.
But a YouTuber discussing a product in a video?
Now, that's getting in front of eyeballs.
Do you consider yourself an influencer?
- I'm just a dude trying to learn
and I have a camera at the same time.
That's pretty much all I am.
I make no attempt to try to become an influencer
or gain social power or anything like that.
- I definitely would consider myself a influencer,
creator, director, cinematographer, actor.
You know what, everything.
- Influencer means I can go make you buy something.
I wanna influence people to get excited
about learning about stuff, you know?
And if that could be called something else
besides an influencer, I would grasp it a lot tighter.
- I'm not interested in influencing people as an individual,
I'm interested in providing people
with tools to be able to help themselves.
- I do, and I think that people get
kind of freaked out by that word, power,
and they'd rather say the word influence.
But when I say the word, like, I have power
over the world, over other people,
that to me isn't a brag, it's kinda scary.
I have to take that seriously,
and I think that creators should take that seriously.
- At the end of the day, influencers possess something
that advertisers can't purchase directly, authenticity.
If I'm Dove, I could pay, say, Taylor Swift,
to promote my new shampoo.
Associating her with my brand,
that would be awesome, it'd be great.
But she gets paid to promote stuff all the time,
and it'll be pretty obvious she's just doing it for money.
If instead I pay Ingrid over here to talk
about my shampoo in one of her YouTube videos,
that's a totally different feel.
It feels more authentic because she's been talking
about beauty and fashion since her
very first video back in 2009.
- So I'm just gonna use my lip butter from The Body Bakery.
The Checks and Balances Frothy Face Wash.
I have really been gravitating towards
these two products from Fresh.
- Authenticity's kinda YouTube's thing.
According to a study sponsored by Google,
four in 10 YouTube subscribers between the ages of 18 to 34
said their favorite creator understands
them better than their friends.
Okay, so is there anything wrong
with companies paying YouTubers to promote stuff?
I mean, you've gotta make money somehow, right?
Well, if the creator is making that relationship clear
to the viewer, probably not.
But it does become a problem
if they don't tell you about it.
Because how do know if they actually like something
versus just telling you that they like something
because they're getting paid?
Otherwise, doesn't that kinda go against the whole idea
of being authentic in the first place?
Have you ever been paid to promote a product
or something on your channel?
And if so, what was that experience like for you?
- Yeah, at the end of the day, this is a business.
Every creator that is trying to survive on this,
there's a process and there's things that they have to do.
That's why it's very important to keep your trust
with the viewer as an influencer or as a personality
that the stuff I advertise, I make sure that I like it.
- I've turned down opportunities to work with brands
and things where it just doesn't feel inline
with my values, it doesn't really feel like
something I would actually wanna tell my audience about
if it wasn't, you know, a paid opportunity.
- You're right to think that if money exchanges hands,
then you should be more skeptical about the content.
Always follow the money, right?
And so, you're absolutely right.
But for me, I want to stay above that
because once you lose your name as a credible source,
it's very, very hard to get it back.
And so, for me personally, that's a prerequisite
when I'm working with a company,
is that I wanna make sure that I can say
whatever I want, 100%.
- The brands that come to me,
I work with a ton of Fortune 500 companies.
They come to me for me to do me.
So, what I like to do is,
because you want to avoid people saying you're a sellout.
So, one way to avoid that is by creating a sketch
how you normally would and then integrating the brand
in there naturally, so I like to do that a lot.
- Do you feel differently about the YouTube creators
when you see them promoting products and promoting things
versus just like, the regular stuff that they usually talk
about on their channel, do you feel differently
about them when you see that stuff?
- I don't care, I just feel like,
it's kinda cool that people are sponsoring them
and how they get paid money
to talk about products in their videos.
And I kinda think it's cool.
- In the summer of 2017, Casey Neistat,
a popular YouTuber with over eight million subscribers,
found himself in just that situation.
He released a video showing off the Samsung Galaxy S8 phone.
It looked a lot like his other videos,
and it got millions of views.
The problem is, he was paid by Samsung to make the video,
but didn't state that anywhere.
He just left viewers with a very cryptic message at the end.
Yeah, Casey, that's definitely not gonna cut it, bruh.
After some good old-fashioned internet backlash,
Casey eventually added text to the description,
making it clear that it was, in fact, just an ad.
The Samsung video wasn't an isolated incident.
New research out of Princeton University found
that out of thousands of videos with paid endorsements,
only 10% disclosed that information to the viewer.
And many of the videos that did have disclosures
didn't even follow the guidelines outlined
by the Federal Trade Commission,
which is the government agency responsible
for regulating commerce in the US.
Basically, you can't just have hashtag ad
somewhere buried in the YouTube description.
The disclosure needs to be clear and easy to find.
The FTC is committed to cracking down
on deceptive advertising by influencers
because it can hurt consumers.
The agency went after a video game publisher
for paying a bunch of YouTubers to promote a new game
without requiring them to tell the viewers
that they were being paid.
The channel got off with a stern warning,
but think about the viewers that went out
and bought that game based on what
they thought were genuine, unbiased reviews.
Maybe now they're stuck with a game that they hate.
So, what do you guys think?
Would you lose trust in your favorite YouTube creator
if they got paid to endorse products, or would you only care
if they didn't tell you they got paid?
Let us know in the comments below.
And since we've been talking about YouTube,
I'm sure you guys have come across videos
about conspiracy theories.
And in that case, you should watch our video on
if you can win an argument with a conspiracy theorist.
And well, thinking of arguments and YouTube,
I'm sure you guys have come across internet trolls as well.
And in that case, you should our other video on
if internet trolls are born or made.
And as always, guys, like and subscribe,
and we'll see you next time.
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