Long after regulatory bodies in the US, the UK, Australia, and Canada put in place regulations with regard to social media influencers, the Indian government, too, has announced guidelines for the relatively new but fast-growing branch of marketing. On the face of it, it may seem like a damper for marketers and influencers who mutually benefit from an undisclosed association at the cost of unsuspecting consumers or the influencer’s followers. In the long run, however, the guidelines will serve the entire ecosystem, especially the brands that increasingly want to be seen as socially responsible entities.
For the uninitiated, influencers, also known as micro-celebrities, are individuals with a large number of loyal followers on various social media platforms such as Instagram, Twitter or Facebook. They are mostly part of the same social and economic milieu that an average consumer comes from, and hence, are more relatable as against conventional celebrities who are distant and unreachable. Social influencers also command more trust among their followers because it is assumed that, unlike the mega-celebrities with known faces and names, these relatively unknown individuals have not been bought over by brands. They generate their own content, share personal views and experiences on their chosen area of interest or subject and don’t read off the script handed to them by brand managers. This makes them more trustworthy and hence, their large and committed following.
Modus operandi
It is this connection with the followers that makes social influencers very attractive for brands. Brand managers are forever in search of ways and means to strike an emotional chord with consumers and win their affection. Marketers using these influencers to tap their followers, or consumers, is known as influencer marketing. It has become a strategic part of the overall marketing plan of brands in the internet era in which more and more consumers are spending their time online for professional as well as personal reasons.
Unlike mass media platforms such as print and television that deliver a heterogeneous set of consumers, influencer marketing allows brands access to a homogeneous and targeted set of consumers. Brands could craft customised advertising and marketing solutions for this set and have a deeper level of engagement with them in an environment where their guards are down.
To reiterate, followers flock to an influencer because they relate to the content they produce, and they believe it to be authentic and trustworthy. Hence, when a consumer watches her favourite cook-show host use a certain brand of cooking oil or a vlogger getting a haircut in a certain saloon, her guard is down, and she absorbs the information without critical examination.
Such a marketing plan is more likely to inspire consumers to make their purchase decisions, which is the ultimate goal of any marketer. And this is where it becomes tricky.
India is one of the largest internet markets in the world. According to the Internet and Mobile Association of India, the country will have 900 million internet users by 2025 as against 692 million active users in 2022. Needless to say, influencer marketing is a big phenomenon in the country. According to the department of consumer affairs that announced the guidelines titled ‘Endorsement Knowhows for celebrities, influencers and virtual media influencers’ on January 20, brands spent Rs 1,275 crore on social influencer marketing in 2022. The spending is likely to grow to Rs 2,800 crore by 2025.
Unholy nexus
These numbers stand in complete breach of the assumption that social influencers are not influenced by brands and are independent “experts” sharing their personal experiences with their followers. These numbers reveal that an unholy nexus between brands and social influencers have come to exist in a space that was supposed to be safe for unsuspecting consumers. Brands exploiting the bond of trust between consumers and influencers and the latter’s readiness to put a price on this relationship destroys the very reason that made social influencer marketing an attractive proposition. It’s a violation that will do serious damage to brands’ ability to win consumer trust in the long run.
Ideally, the marketing industry should have voluntarily drawn a list of dos and don’ts for using social influencers to peddle their wares and not waited for the government to crack the whip. The government guidelines, incidentally, put the onus on the influencers to make full disclosures of material interests such as gifts, hotel accommodation, equity, discounts, and awards and tag such content as “advertisement”, “sponsored” or “paid promotion”. Those found to be violating these guidelines could attract legal action including a ban on endorsements. However, brands need to be equal partners in the exercise. It is imperative for brands to ensure that consumers are not cheated and their trust is not violated for short-term gains. This itself will help brands in building a healthy relationship with consumers and also, avoid any reputational damage that an irresponsible or greedy influencer can cause to them, especially in the wake of the new guidelines.
Archna Shukla is a senior journalist based in Delhi. Views are personal, and do not represent the stand of this publication.
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