How did $1 million FTC fine affect Teami’s Influencer Marketing strategy?

Nick Baklanov

Marketing specialist at HypeAuditor. Connect on Linkedin.

On March 6, the Federal Trade Commission made a move to start legal action against a detox tea company Teami for making overblown health claims and paying influencers to post Instagram ads without disclosing that they were paid.

Teami has agreed to pay $1 million related to these allegations.

According to the Federal Trade Commission, Teami made more than $15 million from their detox teas and products, in part because of the company’s campaign using paid influencers, such as rap star Cardi B and “Cheetah Girls” member Adrienne Bailon.

How did a $1 million dollar fine affect Teami’s Influencer Marketing strategy?

HypeAuditor compared the activity of Teami influencer marketing on Instagram a month before March 6th and a month after March 6th.

We have found that after FTC started actions against Teami the company vice extended it’s influencer advertisement on Instagram.

The Estimated Reach of their influencer marketing campaign increased by 40% (from to 7.2 M unique views to 10.1 M unique views)

The Estimated Media Value increased by 38% (from $387K to $535K)

However, only 7.6% of posts have a disclosure (22 posts with mentions from 287 posts have disclosure).

5 february – 5 march, 20206 march – 6 april, 2020
Estimated Media Value*$387K$535K
Estimated Reach**7.2M10.1M
Contributors266232
Contributors with disclosure2719
Mentions351287
Mentions with disclosure2922

*Estimated Media Value is a metric that benchmarks influencer marketing campaign effect. It estimates the price for targeted advertising with an equivalent reach and audience.
**Estimated Reach Total number of people who have seen any of the posts

Influence marketing is a profitable advertising channel for Teami that, despite the pandemic and the fine of a million dollars, they did not stop, but expanded their expansion on Instagram.

Posts with @teamiblends mentions

Below you can see the list of posts with @teamiblends mentions from top tier Instagram influencers based in the USA.
All these posts were made after the FTC allegations but only 4 of then have a proper disclosing.

Influencer: hennessycarolina
Number of followers: 6.7M followers
Post link: https://www.instagram.com/p/B-fqJrVhso7/
Disclosure: No

Influencer: hopeisabelhoward
Number of followers: 1M followers
Post link: https://www.instagram.com/p/B-NrQSWjYFH/
Disclosure: No

Influencer: chiquis
Number of followers: 3.7M followers
Post link: https://www.instagram.com/p/B95Z-xznLoD/
Disclosure: Yes

Influencer: leylamilani
Number of followers: 1.2M followers
Post link: https://www.instagram.com/p/B92mfA2gA-3/
Disclosure: Yes

Influencer: sammisweetheart
Number of followers: 3.1M followers
Post link: https://www.instagram.com/p/B-YI-SBF4mQ/
Disclosure: Yes

Influencer: bsmp2
Number of followers: 587K followers
Post link: https://www.instagram.com/p/B-N_dRWhJZO/
Disclosure: No

Influencer: colettekati
Number of followers: 713K followers
Post link: https://www.instagram.com/p/B-GSQkJBW0n/
Disclosure: No

Influencer: tiffanyfrancosmith
Number of followers: 277K followers
Post link: https://www.instagram.com/p/B-N_evvHf8p/
Disclosure: No

Influencer: mikethesituation
Number of followers: 2.3M followers
Post link: https://www.instagram.com/p/B9h3JPSpJn2/
Disclosure: No

Influencer: allthingsadriennehoughton
Number of followers: 264K followers
Post link: https://www.instagram.com/p/B916UiyJT3p/
Disclosure: Yes

About HypeAuditor

This report was made by HypeAuditor

HypeAuditor is an AI-powered Instagram and Youtube analytics tool that helps to get insights about the creator’s audience, increase advertisers’ ROI and safeguard authenticity in influencer marketing. It sets a standard for the Instagram analytics by providing the most accurate data.

HypeAuditor applies machine learning to determine behavioral patterns and identify fake followers and engagement on influencer accounts. It presents users with a breakdown of demographic data for an influencer’s audience and brings benchmarks for each metric for influencers with a similar number of followers.

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For questions or details contact 

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NIck Baklanov

marketing specialist at HypeAuditor

nick@hypeauditor.com

+13477080034