Social media influencers on advertising watchdog’s radar
Across Facebook, YouTube and Instagram, hundreds of social media influencers hawk food, clothes and phones, unbeknownst to their followers that the posts are paid for. They are the toast of brands that are chasing that touch of authenticity missing in celebrity endorsements. And now, the advertising regulator has taken note.
The Advertising Standards Council of India (ASCI) is working on disclosure norms for social media influencers promoting products on the internet and is likely to release them in the third quarter of this year, a top official said.
The council plans to frame these guidelines on the basis of international best practices, so that users can make informed decisions on their purchases.
“With a significant increase in digital advertising, it has become crucial for ASCI to come up with strong processes for the digital medium, including the guidelines for social media influencers,” said Rohit Gupta, president of Sony Pictures Networks who was recently elected chairman of ASCI.
“On social media platforms such as Instagram, Twitter or Facebook, people are promoting brands and products which also come under ASCI’s purview. Influencers are becoming big (and) we need to look at redressal systems and guidelines that will protect consumers and guide brands to use them wisely,” Gupta said in an interview.
A social media influencer, having established their credibility in a specific area, wields the ability to influence potential purchase decisions by recommending items through their posts. The category includes both celebrities and independent content creators. They are often paid based on their follower count and user engagement. With young consumers increasingly becoming immune to traditional advertising, influencer marketing driven by personal recommendations has caught on, especially in categories such as beauty, fashion, travel and food.
Although ASCI does not have penal powers, its decisions are binding on both members and non-members, according to a Delhi high court ruling. The Consumer Protection Act, which seeks to penalize misleading ads placed on virtually any medium, has also recognized ASCI’s status as a self-regulatory industry body.
According to digital marketing agency AdLift, India’s influencer market is estimated at $75-150 million a year, as compared to the global market of $1.75 billion. From an online marketing perspective, this is a sizeable amount, and the number is expected to go up as more Indians go online with cheap data and affordable smartphones.
“Definitely, these guidelines are the need of the hour to protect consumers, brands and advertising ecosystem at large. Today, there is a ton of influencer marketing happening, where nobody is calling it as an ad,” said Prashant Puri, co-founder and chief executive of AdLift.