Taking inspiration from Poo’s dialogue, to become a successful influencer, a person needs to be brilliant in three departments:
Good marketing!
Good marketing!
& Good marketing!
Jokes apart, Influencers have indeed become a big part of our daily internet lives. From Instagram reels to YouTube videos, we are legit surrounded by them. They do tend to influence our lives without a shadow of a doubt. While some entertain us, the others make us feel inclusive. Lifestyle, fashion, travel, food; the list is never-ending.
It would not be an overstatement to say 2020 was a year of influencer marketing. Locked in at home during peak lockdown, many users took to YouTube for cooking, gardening, and DIY videos, increasing their social media engagement. Additionally, there was no traditional television programming, which resulted in greater consumption of online content.
Even before the pandemic had reached its peak in the wake of the deadly virus, influencer marketing was thriving. Marketers and brands have increasingly sought influencers to lend credibility to their brands. More than 50% of marketers claimed that they planned to increase influencer marketing spending in 2021, according to a recent study.
Influencer marketing is construed to take advantage of an existing community of followers engaged in social networks. Influencers are gurus in their niches.
It has a more authentic appeal because this is still a real person and is bringing a raw, unpolished quality,
says Amrita Thakur, who has over 103,000 followers on Instagram. “In a sense, following an influencer is literally like having a personal shopper. Not only can you see outfits on them, but you get ideas on how to style them too. And while all this may come naturally to a few people, there is a large section of people that genuinely struggle with it.”
What has worked in favor of Influencer Marketing in India?
The screen time across all age groups, demographics, and socio-economic regions has surged dramatically. Content consumption is at an all-time high. The high consumption has invariably helped content creators reach a larger audience and make an extended impact with their content.
Additionally, since production houses were closed, all the content creation took place at the influencer level. The country’s most prominent brands recognized the impressively high quality and engagement levels of the content created by influencers. This led them to encompass the influencer marketing trend.
Ultimately, a very intrinsic characteristic of influencers coming to the fore is empathy. Influencers are empathetic to the ongoing situation and promote brands in a relatable manner through relevant content for today’s consumers. Recognizing that end-users no longer relate or respond to celeb endorsements, brands are employing influencers who reach out to consumers as allies, peers, or trusted friends and not just promoters.
Combining it with their consistent efforts to connect those in need bolsters the faith that people have in influencers today.
Influencer marketing is a segment where we have discovered the tip of the iceberg. Let’s see what’s coming next for influencer marketing as a sector.
Advertising Standards Council of India (ASCI) guidelines:
Today, digital media has become more pervasive, with a cornucopia of content available for users across age groups to utilize. To fulfill this, it is imperative that we understand these advertisements and also know how the consumers view them. As the lines between ads and actual content begin to blur, consumers become less aware of what classifies as authentic content v/s what is promotional. The stated issue can be problematic.
When consumers view promotional messages without realizing the commercial intent behind the advertisements, it at times become misleading, abuse of consumer trust, resulting in violation of regulations . Owing to this, at the outset of the year, ASCI has stepped in with aq motive to establish draft guidelines for all the social media influencers, underscoring the significance of influencer marketing’s role in identifying the purchasing decisions of consumers for a wide range of products – be it affordable fashion or luxury items ranging from high-end gadgets to cars.
Increased transparency in transactions:
Usually, brands pay a hefty sum when they take the influencer marketing route, especially if the influencer is well established with a large follower count. This is because brands are often unaware of the influencer’s actual fee as there exists the involvement of intermediaries who just try to markup the cost over the influencer’s fee in turn increasing the overall price, not only making this unethical but also adversely affecting the overall ROI with the efficiency of an influencer marketing campaign. Market players who can ensure that the entire transaction becomes more transparent thus, enabling the brands to find and filter the right influencer based on insights and data, not because of a preferred relationship with a content creator, are the ones who will stay in this race.
The foray of influencer marketing into mainstream advertising:
Up until recently, influencer marketing was primarily considered to be a segment that was related with digital marketing in a way. However, ASCI’s issue of the recent guidelines marks the foray of influencer marketing into mainstream advertising, depicting how influencer marketing has evolved, becoming an advertising standard in itself. This opens a wealth of growth opportunities for influencers, influencer marketing platforms, and brands looking to benefit from the fast-growing industry.
Customer's your king:
Influencer marketing tends to move far away from ‘in your face’ hard selling. The announcement of ASCI’s guidelines has further cemented this approach, making it a mandatory part of the sector’s further growth. In large part, influencers are more mindful of their content, displaying a sense of social responsibility. The content consumers consume is shaping their shopping patterns just as influencers are. ASCI’s regulations will make consumers the most powerful, empowering them with awareness and knowledge to distinguish between authentic and promotional content.
Consumers will now get maximum benefit by identifying promotional content online – be it a blog, video, or article. With end-to-end transparency, tech-powered influencer marketing platforms will enable the smooth functioning of influencer marketing and extend their services to brands without the need to charge a high fee.
Performance-oriented marketing:
Influencer marketing is not sub rosa anymore. However, the future will include performance and ROI to be the differentiator to judge the success of any campaign. In line with this, creators on YouTube provide a link to the product they advocate so followers/viewers can directly click and buy without any hassle on leading e-commerce portals. The strategy helps creators earn commission on these sales while allowing brands and advertisers to assess the influencer’s last-mile performance deterministically. Now, both advertisers and influencers will be speaking this language!
Final Word
The entire spectrum of influencer marketing is on the cusp of transformation where advertisers are on one end, influencers on the other end, and consumers between the two parties. To further ensure that the entire process of influencer marketing becomes transparent, there are newer, novel technologies that will emerge and shape the future of influencer marketing to ensure that it becomes mutually beneficial.
This post was written in collaboration with Asif Yahiya Sukri LLP. Asif Yahiya Sukri LLP provides unparalleled personalized financial services to a broad range of clients across different geographical locations. With a presence in the USA, India and the MENA region, they ensure that all of your financial decisions are made carefully and with your best interests in mind. They are innovators who understand what goes into building companies.
You can also reach out to them on info@aysasia.com
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