Ranveer Allahbadia controversy: Influencers' rates drop, deals fall through as impact persists

Beer Biceps fiasco: Impact still felt in influencer marketing space.

YouTuber and podcaster Ranveer Allahbadia may have received some relief, with the Supreme Court permitting him to resume uploading his podcasts. However, the creator economy continues to feel the effects of his controversial comments on the India's Got Latent show, as influencers report a drop in rates.

"The drop is significant, with rates falling by over 50 percent in some cases, and in some instances, influencers are not even being considered," said Sumon K Chakrabarti, co-founder & CEO of the ad agency Buffalo Soldiers.

Shivaditya Barjatya, a lifestyle and travel influencer, estimates a 5-10 percent drop in rates charged by influencers for brand deals. "A macro influencer charging anywhere around Rs 2.5 lakh has seen a drop of about 5-7 percent after this (Ranveer Allahbadia and India's Got Latent) controversy. Brands are too concerned. It has impacted the top category. The big following which impressed brands is now resulting in more scrutiny."

"The situation is such that while renegotiations are happening, if an influencer isn't even being considered, there's nothing left for them to negotiate," said Chakrabarti.

Samay Raina, the standup comic who hosted the show India's Got Latent also lost a brand deal in the fallout of the controversy around the show. On the verge of collaborating with a company in the energy drink space, the deal fell through.

The scene is pretty bad, said a marketer who works with influencers. "Allahbadia getting involved in such a big controversy has made every influencer wary. Some are going back to posts they posted 10-12 years ago and deleting them. With families facing backlash, influencers have become very sensitive about their content."

The issue has brought more caution in the words we use to project ourselves, said Ankita Rai, a travel and beauty influencer, who added that she knows that some influencers have lost brand deals.

"It is not as easy flowing and organic conversation any longer. While the content I make for brands have always been pre-approved, even for the personal content that we create to keep our audience engaged, we are now careful about how it will be well received, will there be any backlash especially after this particular incident. We don't really know what will trigger a negative reaction. We are not as open as we used to be as creators have become more vulnerable," she said.

Influencers have lost deals and those who had nothing to do with this controversy, said Chakrabarti.

"Influencers are being questioned by brands whether they have said or done anything that will affect their image, and these questions are being posed to influencers who have worked with these brands in the past."

He added that content being created by digital creators will go through a change. "Many people are reviewing their content that is planned for the next one year. After finishing the creative process and redoing it is like starting something from scratch. For many (creators), it is like rebuilding their careers."

Recently doing a show, standup comic Harsh Gujral jokingly said that he took off two episodes of his new show Escape Room as he is scared of any backlash.

Chakrabarti also thinks the impact of the Beer Biceps (Allahbadia's company name) fiasco will be long-term. "While the public memory is short, brands and agencies are re-evaluating what their ROI (return on investment) will be by collaborating with influencers and whether it is good enough to take that risk. This issue has led to a larger conversation with brands evaluating whether the collaboration will be a flash in the pan ROI or will it be a larger statement a brand wants to make."

Who are brands staying away from? Anyone who is controversial.

"A lot of standup comics, particularly those using vulgar language, or who have been crude in their content are losing deals and agencies like us are not even suggesting such names to brands," the Buffalo Soldiers founder said.

The marketer cited above said that when YouTuber Gaurav Taneja popularly known as the Flying Beast was embroiled in a controversy in 2022 his rate had halved.

Taneja was arrested for creating a stampede-like situation in Noida Sector 51 Metro station by celebrating his birthday.

"Brands are looking for someone influential but not polarising," the marketer added.