The social media influencer is the creation of a modern, attention-deficit world. Today, time is a precious commodity, which means we cannot afford to give our attention too long to anything. Consequently, anybody who has the ability to hold our attention for a rather longer time becomes a person of great value. Technological giants have found infinite ways to monetise that attention on social media platforms. Taking their lead, renowned brands across the globe have learned how to turn that attention to pure profits. In fact, that is exactly what anybody who has a significant audience can do today.
Bloggers, YouTube personalities, and Instagram stars with substantial, dedicated online followers are becoming Internet influencers. Many of them are being roped in by brands to promote or sponsor products. Consumers trust product recommendations from influencers, believing them to be more honest than aggressive product advertisements or commercials. Companies connect with these influencers to line up with their brands and products to target demographic groups.
Despite the excellent packages offered to these influencer marketeers, the dent in annual marketing budgets of companies is nowhere close to the hefty requirements of traditional advertising. On the other hand, influencers ensure a faster and effective way for products to reach consumers and clinch sales. In fact, some of the best influencers have now become businesses in themselves. Recently, the popular food vlogger Madhura Bachal launched her own brand of spices called Madhura’s Recipe. It is all about leveraging off of one’s assets. Financially, it certainly makes sense, for that is how businesses grow.
Unless one goes overboard.
Remember that enormous numbers of engaged followers mean enormous power to influence. And with great power comes great responsibility.
Unlike in other professions, a social media influencer does not need any specific qualifications. A smart phone, apps, and a good Internet connection are all that is required. Take a case where an influencer with, say, around 10,000 followers, hosts a programme that claims to heal children of inner traumas, increase emotional hygiene, and reverse other problems. If the influencer is not professionally qualified or trained in mental health counseling, yet makes these claims to ‘help’ followers, then sooner or later this person will be called out for misleading followers. While most influencers are genuine, unscrupulous claims are becoming increasingly common in the world of social media marketing.
Vaccines were a ray of hope during the dark days when Covid-19 engulfed the world. At the same time, there were the vaccine sceptics who spread paranoia through their concerted social media campaigns. It almost seemed like a cottage industry thrived on vaccine disinformation. The Center for Countering Digital Hate conducted a study and surprisingly discovered that just 12 people were responsible for spreading the bulk of this disinformation about Covid-19 vaccines on Facebook, Instagram, and Twitter.
Could there be a better example of the power wielded by influencers than how only 12 people managed to propagate 65% of this anti-vaccine movement?
Health is one of the common areas where social media influencers make unsubstantiated claims. Especially in matters related to weight management, influencers pass on opinions as ‘facts’ and even promote unhealthy eating habits and exercise routines. Sometimes they advertise or sponsor supplements, home remedies, or exercise equipment, which ideally should not be used without the advice of health professionals or a medical prescription. Unfortunately, research points out that 21% of young adults prefer to take advice doled out by influencers rather than consult health professionals. This dangerous trend has led to multiple eating disorders among teenagers.
An online shopping site used influencers extensively to market its goods. But this very strategy backfired on it. It discovered that many influencers were also spreading a negative campaign against its products at the same time. People attested that they had been offered monetary benefits to bad-mouth the company on social media platforms. Eventually, the company did slap defamation cases on these influencers. Not only did this hullabaloo expose the dark underbelly of influencer marketing, but it also served to warn businesses of the kind of two-edged sword it can be.
Recently, collapsing crypto prices brought another negative focus on influencers. Crypto marketing with exaggerated claims has been flourishing on social media for a while. Celebrities like Kim Kardashian and Matt Damon endorsed crypto investments, leading to huge sales of obscure coins and NFTs by fans. It did not take much time for crypto prices to crash, wiping out unsuspecting investors.
Now was the time to take a stand.
The Advertising Standards Council of India did just that.
The ASCI has released draft guidelines that place the onus on influencers to add disclosure labels on their sponsored products. While it does not have penal powers, the Consumers Protection Act, which penalises misleading ads, recognises ASCI as a self-regulatory industry body.
The 2022 Budget placed a 30% ‘crypto tax’ on all digital assets and a 1% TDS on each cryptocurrency-related transaction. ASCI followed up by declaring that advertisements for all virtual digital assets, including exchanges and products, must begin with the disclaimer, ‘Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.’
One hopes that these regulations will rein in unethical and unscrupulous practises by social media influencers. However, the bastion of integrity is having a high moral compass rather than legal vigilance. It is up to the influencers to retain the trust of their audience as well as an unsullied marketing reputation by always being above board and beyond temptation.