South SFV Today

In September 2018, Snapchat launched a new generation of its Snap Spectacles. Instead of relying on a traditional advertising campaign to promote the camera-enabled sunglasses, the brand chose an influencer to get the word out. Luka Sabbat, a 20-year-old model and actor best known for his role on the TV show Grown-ish and reportedly dating a Kardashian, was selected due to his 1.7 million Instagram followers.

The terms of the deal were straightforward. Sabbat would create one Instagram post and three stories featuring photos of himself wearing the spectacles at New York, Paris, or Milan fashion week. He would submit all posts to Snapchat’s PR firm for pre-approval. In exchange, Snapchat would pay him $60,000, with $45,000 upfront.

Sabbat made one Instagram post—a series of photos of himself in a hotel room wearing the glasses and holding a bunch of bananas up to his ear like a phone—but did not mention Snapchat or Snap Spectacles by name nor submit the post for pre-approval. A month later, Snapchat’s PR firm sued him for breach of contract.

This incident marked a significant moment in influencer marketing: it was the first time an advertiser had sued an influencer for "failure to influence," as reported by Variety.

Following this event, other advertisers began pressing for stricter contracts that provided more clearly defined expectations for influencers. However, according to new research by Navdeep Sahni from Stanford Graduate School of Business, these restrictive contracts can undermine influencer marketing campaigns' effectiveness.

Sahni explains that “you get an agent, an advocate who is connected with the audience in a very unique way” through influencer marketing. Unlike conventional ads devised by agencies that may seem generic, influencers often operate within specific niches valuable for brands seeking customized ads.

Influencers are selective about which advertisers they work with due to their need to maintain authenticity with their audience. “They’re more picky than traditional media,” says Sahni. Followers expect influencers to be genuine in their online content; excessive restrictions from advertisers can compromise this authenticity.

With colleagues Reto Hofstetter from the University of Lucerne and Andreas Lanz from the University of Basel, Sahni studied how ad contracts affect influencer marketing's performance. They analyzed 984 contracts worth $6.9 million written by 286 brands offered to 7,101 influencers through an undisclosed platform.

The study found that more restrictive contracts were less likely to attract influencers and resulted in lower audience engagement when accepted. Specific directions on product display reduced participation by 28%, particularly among influencers with strong follower bonds.

A field experiment involving 1,495 influencers showed similar results: less-restrictive contracts generated higher engagement (53 clicks on average) compared to standard ones (14 clicks). This suggests that excessive constraints hinder creativity and authenticity—key elements in successful influencer marketing.

Sahni concludes that allowing influencers more creative control benefits everyone involved—advertisers included—and plans further research as more data becomes available.

Luka Sabbat's dispute with Snapchat concluded with him paying $15,000 in settlement fees. He continues influencing but now focuses on his own ventures; he launched his clothing brand in December 2023 and mentions sponsors in his Instagram posts consistently.