Influencer marketing is an effective method, rather than traditional advertising strategy, due to that the method is perceived more authentic and trustworthy. During autumn 2017 the social media platform Instagram introduced an advertising policy to distinguish personal opinions and advertising – due to this advertising is more visible than ever before on the social media platform. Further, the general advertising resistance is enhancing in Sweden, and the commercial use of influencer has increased. There’s an interesting situation in a constantly evolving marketing environment, which is relevant and valuable to investigate.

The purpose of the study is to investigate attitudes and opinions regarding Instagram's new advertising policy and economically compensated posts labeled "Paid partnership with...". Based on the purpose, the following research question has been established:

• What opinions and attitudes exist towards Instagram advertising policy and economically compensated posts published by influencers on Instagram with the label "Paid partnership with...”?

The essay is based on a qualitative and quantitative research methodology, also known as mixed methods research. The empirical data was based on three semi structured interviews with key persons whom represents companies, influencers and they all are working with Influencer marketing. In addition, an online survey was implemented with 140 respondents whom use Instagram.

Based on the results of the study, several conclusions have been identified. The match between influencers and companies has proved to be one of the primary prerequisites for economically compensated collaborations to be considered credible. Companies generally has a positive attitude towards Instagram's advertising policy, considering that it helps to label economically compensated posts as advertisements. Additionally, the policy is appreciated by the Instagram users as it helps to increase transparency for economically compensated posts, as it’s very important that such posts be advertised, by both perspectives. Continuingly, the study shows that both parts generally have a positive attitude towards posts published by influencers on Instagram with the label "Paid partnership with...". In conclusion, the design of such posts has proved to be crucial for the Instagram users attitude.