Turning Trust to Transactions: Tracking Affiliate Marketing and FTC Compliance in YouTube's Influencer Economy
Organizations: University of Iowa · UC Davis
Abstract
YouTube has evolved into a powerful platform where creators monetize their influence through affiliate marketing, raising concerns about transparency and ethics, especially when creators fail to disclose their affiliate relationships. Although regulatory agencies like the US Federal Trade Commission (FTC) have issued guidelines to address these issues, non-compliance and consumer harm persist, and the extent of these problems remains unclear. In this paper, we introduce tools, developed with insights from recent advances in Web measurement and NLP research, to examine the state of the affiliate marketing ecosystem on YouTube. We apply these tools to a 10-year dataset of 2 million videos from nearly 540,000 creators, analyzing the prevalence of affiliate marketing on YouTube and the rates of non-compliant behavior. Our findings reveal that affiliate links are widespread, yet disclosure compliance remains low, with most videos failing to meet FTC standards. Furthermore, we analyze the effects of different stakeholders in improving disclosure behavior. Our study suggests that the platform is highly associated with improved compliance through standardized disclosure features. We recommend that regulators and affiliate partners collaborate with platforms to enhance transparency, accountability, and trust in the influencer economy.
Figures & tables
| Source | # videos | # hyperlinks | # channels |
| Reddit ( ) | 1.88M | 3.78M | 480.0K |
| Random ( ) | 64.2K | 216.0K | 58.7K |
| Trending ( ) | 46.6K | 120.1K | 7.5K |
| Shopping ( ) | 10.9K | 90.2K | 2.9K |
| Total ( ) | 2.00M | 4.13M | 539.9K |
| Compliance | Clarity of | Clarity of | Fraction of |
| status | compensation | relationship | videos (%) |
| CC | Clear | Explicit or Grouped | 12.20 |
| Clear | Mixed Group | 9.31 | |
| PC | Ambiguous | Explicit or Grouped | 2.95 |
| Ambiguous | Mixed Group | 6.35 | |
| Total | 18.61 | ||
| 1–100K | 100K–1M | 1M+ | Total | |
| AV (%) | 6.4 (+3.2) | 12.7 (+4.0) | 11.4 (+3.4) | 8.5 (+3.2) |
| AC (%) | 6.0 (+2.3) | 17.0 (+3.0) | 20.5 (+3.4) | 7.7 (+2.5) |
| NALPV | 5.8 (+1.7) | 6.7 (+2.6) | 4.6 (+1.1) | 5.7 (+1.7) |
| FLAL (%) | 46.0 (+1.8) | 38.5 (+7.3) | 29.2 (+4.9) | 39.5 (+5.6) |
| NC (%) | 61.4 (-17.6) | 62.3 (-17.3) | 74.7 (-9.3) | 65.1 (-15.8) |
| PC (%) | 23.8 (+7.9) | 20.7 (+6.1) | 14.5 (+4.2) | 20.3 (+6.7) |
| Category | AV | FLAL | NC | PC | CC |
| (%) | (%) | (%) | (%) | (%) | |
| Autos & Veh | 17.1 | 52.2 | 65.3 | 20.0 | 14.7 |
| Comedy | 5.8 | 29.3 | 92.3 | 4.9 | 2.9 |
| Education | 14.6 | 36.1 | 66.1 | 21.3 | 12.6 |
| Entertainment | 7.3 | 35.2 | 75.1 | 12.9 | 12.0 |
| Film & Anim | 7.0 | 34.9 | 78.0 | 12.8 | 9.2 |
| Comparison | Metric (m) | Effect (95% CI) | |
| NC | -3.53 | [-19.70, 13.63] | |
| PC | -7.58 | [-22.73, 7.58] | |
| CC | 11.11 | [1.52, 21.21] | |
| NC | -44.78 | [-48.71, -40.63] | |
| PC | 0.13 | [-3.42, 3.57] | |
| CC | 44.65 | [41.03, 48.32] |
| Period | Source | AV (%) | AC (%) | NALPV | FLAL (%) | NC (%) | PC (%) | CC (%) |
| 8/20-12/23 | 15.01 | 17.95 | 3.64 | 25.50 | 86.43 | 8.53 | 5.04 | |
| 8.47 | 7.94 | 5.71 | 38.81 | 64.02 | 22.36 | 13.62 | ||
| 6.54 | 10.02 | -2.07 | -13.31 | 22.41 | -13.83 | -8.58 | ||
| 1/24-12/24 | 50.06 | 51.52 | 10.20 | 79.05 | 20.70 | 17.39 | 61.90 | |
| 15.81 | 18.06 | 83.61 ∗ | 10.15 | 6.24 | ||||
| 66.13 | 20.94 | 12.93 |
Appendix figures & tables2 assets
Supplementary material from the paper’s appendix.
Appendix
| Label | Description with example | Compliance Level |
| Clarity of Compensation | ||
| Clear | Clearly explain that the creator is compensated when a viewer uses the associated affiliate link. Example: “If you click on this link and purchase a product, I get a small commission at no cost to you.” | Compliant |
| Ambiguous | Do not explicitly mention the monetary benefit from viewers’ use of the affiliate link, instead using vague language to imply support. Example: “Support the channel through these links.” | Possibly compliant |
| None | Do no mention of any form of compensation associated with the affiliate links, instead using only technical terms which explicitly disallow by FTC FAQs ( FTC 2024b ) . Example is: “This is an affiliate link.”. | Non-compliant |
| Clarity of Relationship | ||
| Explicit individual | Disclosure placed directly alongside each affiliate link for maximum transparency Example: ”This is a sponsored link for <PRODUCT> : <affiliate link> .” | Compliant |
| Classifier | Precision | Recall | F1 |
| (%) | (%) | (%) | |
| Disclosure detection | 94.7 | 98.9 | 96.8 |
| (Total) Compensation | 98.6 | 98.6 | 98.6 |
| Clear | 98.9 | 96.9 | 97.8 |
| Ambiguous | 99.0 | 99.8 | 99.5 |
| None | 98.0 | 99.0 | 98.5 |
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