Social Media Regulation, the Stakeholders, and Influencers' Credibility

: The Case of the UAE

Abstract

PURPOSE: The objective of this study is to examine the regulations concerning influencer marketing on social media in the United Arab Emirates (UAE) as well as the parties
involved in this process. The primary focus is to gain a comprehensive understanding of the difficulties, advantages, and obstacles that arise from these regulations. Additionally,
this research delves into the issue of influencers' credibility and the impact of UAE legislation on the social media influencer industry, with particular emphasis on Instagram
platform.

METHODOLOGY: A mixed-method approach was used to conduct the study. A total of eight interviews were carried out for the pilot study, with two participants from each of the four groups (namely, influencers, consumers, marketing agencies, and the National Media Council) to identify and rectify any technical issues associated with the data
collection procedures. Following this, the interview process for the qualitative aspect of the current research involved sixteen individuals selected from four stakeholder groups.
Additionally, 143 participants were involved in a quantitative survey concerning social media influencers and advertisement labelling. The participants were divided into a
stimulus group and a non-stimulus group. Owing to the social distancing measures during the COVID-19 pandemic, the researcher had to alter how the research was conducted. Before the pandemic, face-to-face interviews were held, but during the pandemic, online quantitative assessments were required. Statistical methods such as logistic evaluation and descriptive statistics were used to analyse the quantitative data. Thematic analysis was used to analyse the qualitative data.

FINDINGS AND DISCUSSION: In the UAE, there is a significant need for social media advertisements to reflect the national culture. The implementation of sponsorship disclosure regulations has been identified as detrimental to influencers whose success relies on their portrayal as peer-to-peer marketers. While social media regulations have
become common, there is a need for extensive consultation among stakeholders to ensure that these regulations foster the industry’s growth. The research also identified an
increase in consumer awareness of online advertising and social media influencers due to heightened online purchasing during the COVID-19 pandemic. Participants explained
that, as a result of COVID-19, online sales and marketing had become integral to their daily lives, as their movements were restricted by social distancing requirements.
Instagram was the platform chosen to assess the ethical and legal issues associated with the rise of influencer marketing. Credibility has been identified as a major attribute of
successful influencers, as both consumers and marketing agencies seek credible influencers. The study shows that the need to eliminate fraudulent influencers and to
create awareness among consumers regarding influencer–product relationships are the main reasons for introducing social media regulations. By offering an in-depth
examination of the current situation in the Emirates and its effects on participants, this study will considerably advance the field’s knowledge about how regulation operates on social media and the variables that can affect its effectiveness.

RESEARCH LIMITATIONS: The key shortcoming of the research is the industry’s fast rate of change, which means that a study relevant now might not be pertinent in the future.
Given the relative youth of the social media influencer industry, further developments are likely to occur, necessitating ongoing study. Secondly, COVID-19 had an impact, as the
planned quantitative research component was limited to an online survey to adhere to social isolation policies.

CONTRIBUTION TO THEORY AND PRACTICAL IMPLICATIONS: This study provides a valuable contribution to the existing body of knowledge as it represents the inaugural
investigation into the effects of the newly implemented regulations. The primary objective of this research is to directly enhance comprehension of these matters, and the choice to conduct this study within the United Arab Emirates further augments the breadth of understanding across diverse legal and cultural frameworks. Moreover, this research makes a substantial contribution to marketing theory and practice by providing a thorough analysis of the current state of affairs in the United Arab Emirates and how it affects stakeholders. It offers a deeper comprehension of influencers' efforts on social media and the variables influencing their performance.

Date of Award	2024
Original language	English
Awarding Institution	Aberystwyth University
Supervisor	Pauline Rafferty (Supervisor)