Majority of consumers stay away from those influencers who lack transparency, the Advertising Standards Council of India (ASCI) said in a report.
Transparency and honesty stood out as the key reasons why consumers trust influencers on social media, followed by relatable content, and personal stories, as per the survey conducted by ASCI among 820 respondents.
The survey, which highlighted the trust consumers have in social media influencers, pointed that 43 percent consumers stayed away from influencers when they sensed a lack of transparency, 42 percent did not trust influencers if they had repetitive content, and over-promotion led to lack of trust for 41 percent consumers.
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Overall, it was found that both brands and influencers gained from meaningful partnerships, the ASCI report said. "Around 64 percent of consumers felt the brand became more trustworthy when influencers endorsed it, while 58 percent of those surveyed thought that the influencers became more trustworthy when they endorsed the brand."
Other findings of the report noted that 90 percent of the respondents made at least one purchase based on influencer endorsement, while 61 percent claimed to have made three or more purchases. "This behaviour was particularly prevalent among consumers ranging from 25 to 44 years of age," the report said.
It added that along with established brands, newer brands benefited considerably with their products being discovered through content advertised by influencers.
“An important aspect of the survey is that non-transparency was among the prime reasons why influencers lost the trust of their followers. On the other hand, transparency in their communication significantly built trust," said Manisha Kapoor, CEO & Secretary General, ASCI.
She also said that while ASCI released its guidelines in May 2021, the Central Consumer Protection Authorities also now requires disclosure of material connection between brands and influencers. Hence, non-disclosures are potential violations of the law.
Since ASCI launched its influencer guidelines in May 2021, it has processed 2,767 cases against brands and influencers for not declaring material connections.
Platforms where the violations occurred included Instagram at 58 percent, YouTube at 33 percent, Twitter at 7 percent, and Facebook at 2 percent.
