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In today's hyper-connected world, brands are increasingly quick to jump on the bandwagon of congratulating influencers and athletes during their moments of success. Whether it's through social media shoutouts or full-blown advertising campaigns, these congratulatory messages often blur the lines between genuine appreciation and opportunistic marketing. While the practice might seem harmless on the surface, it raises significant ethical and legal questions that brands must carefully consider.

The Ethical Dilemma: Opportunism vs. Genuine Support

There lies a key ethical question: Are these congratulatory messages truly about celebrating the individual's achievements, or are they thinly veiled attempts to capitalize on their success? Consumers today are more discerning than ever, and many see through these gestures as mere opportunistic marketing. Brands that have not historically supported a particular athlete or influencer may face backlash for attempting to associate themselves with their success only after they've achieved it.

This raises concerns about the authenticity of the brand's messaging. If a brand did not stand by the influencer or athlete during their journey, is it ethical to suddenly align themselves with their success? The answer is often no. Such actions can be perceived as disingenuous, and consumers are increasingly likely to call out brands for this kind of behavior. Ethical marketing should be about building long-term relationships and demonstrating consistent support, not just showing up when there's a spotlight to share.

Legal Considerations: Navigating the Grey Areas

Legally, the situation is somewhat murky. At first glance, congratulating someone might seem like a harmless act. However, the moment a brand leverages an athlete or influencer's success for monetary gain, the waters become murkier. For instance, using the name or likeness of an athlete in an advertisement without their consent could potentially lead to legal complications, especially if the brand is perceived as benefiting commercially from the association.

This is particularly relevant in the world of sports, where strict regulations govern how brands can use athletes' names and images. Events like the FIFA World Cup or the IPL have stringent guidelines that even official sponsors must adhere to. Brands that are not officially associated with these events or the athletes involved could face legal repercussions if they attempt to leverage these moments for their marketing campaigns.

The legal landscape is complex and varies depending on jurisdiction, but one thing is clear: brands must tread carefully. Any monetary gain achieved through such advertising without proper agreements in place could lead to potential legal challenges. Beyond the legal risks, there is also the very real possibility of reputational damage if consumers perceive the brand's actions as exploitative.

The Role of Influencers and Athletes: A Double-Edged Sword

For athletes and influencers, these moments of success represent significant opportunities. Their market value often skyrockets in the aftermath of a major win or a viral moment, making them highly sought after by brands. However, this also raises questions about the sustainability of their fame and the long-term benefits they can provide to brands.

While some athletes and influencers manage to maintain their relevance over time, many have a limited window to capitalize on their fame. This creates a situation where brands must weigh the potential short-term gains against the long-term sustainability of their association with these individuals. For larger brands with substantial marketing budgets, the high costs of partnering with successful athletes and influencers may be justified. However, for smaller brands, the return on investment may not be as clear-cut.

Moreover, athletes and influencers often carry a level of credibility and authenticity that can enhance a brand's image, particularly in categories like health and fitness. But as with any celebrity endorsement, there is always the risk that the individual's star may fade, leaving the brand with a partnership that no longer holds the same value.

A Call for Ethical Marketing

In a nutshell, while congratulating influencers and athletes might seem like a simple and effective marketing strategy, it comes with significant ethical and legal implications. Brands must carefully consider their motivations and the potential backlash from consumers who are increasingly savvy and skeptical of opportunistic marketing tactics. Ethical marketing is about building genuine, long-term relationships, not just capitalizing on fleeting moments of success. Brands that navigate this landscape with authenticity and transparency will be better positioned to maintain consumer trust and avoid legal pitfalls.

<strong>Vaibhav Gupta, Co-Founder and CPO, KlugKlug, a research-driven science influencer marketing (KOL) platform.</strong><em>

Ethical and Legal Implications of Brands Congratulating Influencers and Athletes

Turns out it is a good time to be an influencer in India. 73 percent of influencers work for less than 10 hours a week, compared to up to 39 hours abroad and 12 percent of influencers earn between Rs1 and 10 lakhs. 86 percent of influencers also expect over 10 percent increase in their income over the next two years. 

According to EY Report titled State of Influencer Marketing in India, influencer marketing is expected to grow by 25 percent in 2024, reaching Rs2,344 crore.

The space is estimated to reach Rs3,375 crore by 2026, at a CAGR of 18 percent. 

As per the report, Instagram and YouTube were the most preferred platforms to consume content from influencers, although many other platforms were used for specific purposes. However, upcoming platforms are gaining momentum and offering innovative ways to engage with new cohorts of consumers.


Interestingly according to EY analysis, influencer marketing was part of three in four brand strategies-engagement rate and quality of target audience were the top criteria for brands to select influencers.


“It is imperative that the criteria used to select influencers are aligned to campaign objectives,” said the report.


When it comes to categories, those with a deep personal connection benefit the most from influencer marketing. Lifestyle, fashion and beauty are expected to drive growth of influencer marketing in India. 


Moving on to influencer categories, marketers are using both large/ macro and micro/ nano influencers equally. 



“Brand ambassadors and influencers play an extremely important role in purchase decisions. It is critical for marketers to strike a strategic balance between mega/macro influencers to drive awareness and brand loyalty, while also tapping into the power of micro/nano influencers to drive engagement,” the report said. 



Agencies also play a critical role in implementing influencer marketing strategies. Marketers need to partner with agencies which drive authentic data driven influencer strategy and provide real time monitoring and insights, while ensuring brand safety. 77percent brands believe that their agencies are fairly equipped to drive influencer marketing campaigns.


Influencers in India working for less than 10 hrs a week, earning  upto Rs 10 lakh a month


Despite the appearance of content creators effortlessly making money through brand endorsements on the internet, the reality is that they are still underutilized. Out of the eight crore plus creators in India, brands are currently engaging with a mere 20,000 creators for their influencer marketing campaigns.

As per, a report by Singapore-based Creator Tech company Animeta, brands have a very limited access to less than 1 percent of the entire creator universe.

“Out of the 3500+ brands that are looking for influencer marketing, millions of creators have no way to access and work with these brands,” the report said.

The report also elaborates on the category of creators India has currently. 
It said, 9.22 lakh creators have at least 100 followers across YouTube, Instagram and Facebook. Out of the 9.22 lakh creators 53 percent, fall under the category of nano creators with less than 10,000 followers. 

Micro creators, with followers ranging from 10,000 to 1 lakh, make up 3.35 lakh or 36 percent of the total creator population. Additionally, 95,000 creators (10 percent) are categorized as macro creators with 1 to 10 lakh followers, while the remaining 7,000 (0.8 percent) are considered mega creators with 10 lakh or more followers. 

“With the exponential growth rate of individual creators in India, this distribution across nano to mega categories is expected to expand rapidly. As creators and brands continue to emerge, and the creator economy becomes more organized, it is projected that over the next two years, a staggering 10 lakh creators will be actively engaged in influencer campaigns,” the report said.
 
According to Krishna Desai, chief product officer at Animeta, creators are no longer bound by geographical limitations or restricted to niche audiences.

“the numbers presented in the report clearly indicate a massive number of creators are still grappling with limitations when it comes to working with brands. We notice a need to unlock the full potential of the creator ecosystem by providing scalability and opportunity to a maximum number of creators. This highlights the crucial requirement for a powerful technology platform that can effectively connect creators with brands, offering monetization opportunities to creators while ensuring the perfect brand alignment,” Desai said. 


Out of the 8 crore plus creators in India, brands are currently engaging with a mere 20,000

Twitter has announced that it will start sharing revenue with creators
on its platform. This means that creators can get a share in ad
revenue, starting with the replies to their posts.

"This is part of our effort to help people earn a living directly on
Twitter. We're rolling out the program more broadly later this month,
and all eligible creators will be able to apply," Twitter says in a
blog post.

The platform has set three criteria to be eligible for the
monetization program. Creators have to be subscribed to Twitter Blue
or Verified Organizations, have at least 5 million impressions on
their posts in each of the last three months, and pass human review
for Creator Monetization Standards.

One of the creators, writer Brian Krassenstein, who has over 750K
followers on the social media platform, tweeted that he had received
nearly $25,000 from Twitter.


The social media company said the payments will be delivered via
Stripe, a financial and SAAS company. Creator Ads revenue sharing will
be available in all countries where Stripe supports payouts.

"We will soon launch an application process for ads revenue sharing.
Creators will be able to apply for both Creator Subscriptions and
Creator Ads Revenue Sharing by accessing Monetization in their
settings," Twitter informs.

INFLUENCER