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In recent years, influencers representing diverse niches and demographics have reshaped not only the content consumption of the audience but also the purchasing power of consumers. 

This is more evident in India where people speak multiple languages and follow a myriad of traditions and customs across regions. 


Firstly, it's crucial to understand the socio-cultural fabric of India, where regional diversity is celebrated and languages, customs, and traditions vary widely from one state to another. This diversity is mirrored in the digital sphere, where content consumption habits differ significantly across regions. 

 
Local influencers, with their understanding of regional nuances and cultural sensitivities, hold a distinct advantage in effectively engaging with audiences on a more personal level. And this is one of the major reasons these influencers are gaining massive popularity. Local influencers, or influencers in general, have been able to build a dedicated following based on their niche expertise or unique personalities. This has paved the way for them to carve out their own niches and have engaged communities around them. They are perceived as more relatable primarily because their content resonates with the local audiences.

 
Brands are not only recognizing the power of their authenticity but can also tailor their messaging and promotions to specific geographic locations or communities. Brands are increasingly drawn to their micro-communities to drive targeted engagement and conversations. Whether it's promoting a new product launch or driving footfall to a local store, local influencers possess the influence and reach to make a significant impact at the grassroots level. 

 
What sets these influencers apart is their power to create highly efficient content that is centered around the interests of their audience. Their capability of tailoring the messaging based on their knowledge of local cultures, trends, and consumer preferences makes it easy for them to deliver high-impact brand exposure and engagement. With a strong community presence, they are able to garner a loyal audience and foster deeper engagement with them. This, in turn, can be beneficial for brands seeking long-term collaborations to establish lasting relationships and enhance brand loyalty. 


Another compelling factor driving the collaboration between brands and local influencers is cost-effectiveness. In today's competitive marketplace, budget allocation is a critical consideration for brands seeking to maximize their marketing impact. Partnering with local influencers often proves to be more budget-friendly for brands, especially those operating within niche or regional markets. This allows brands to allocate their marketing budgets more efficiently while still achieving the desired results.
 

In conclusion, the star power of local influencers is undeniably on the rise within the Indian demography, and for good reason.Their authenticity, relatability, cost-effectiveness, and ability to connect with hyper-local audiences make them indispensable allies for brands seeking to make meaningful inroads into diverse and dynamic regional markets


Mrunali Dedhia is vice president at Chtrbox, an influencer marketing platform and agency in India.

Local influencers harness regional insights to forge deeper, more personal bonds with audiences: Mrunali Dedhia

In a LinkedIn post, Manisha Kapoor, chief executive officer and secretary general of the Advertising Standards Council of India (ASCI), shared that after so-called health influencers and finfluencers (financial influencers), their LinkedIn counterparts or Linkedfluencers are the latest to be in the line of fire. “It was rightly pointed out by the person who tagged ASCI that a co-founder of an agency should have been aware of the influencer disclosure norms outlined by ASCI. (By the way, these disclosure requirements are now also a part of the law.),” she posted.

Kapoor further highlighted that another post caught her attention where someone was praising a liquor brand. The disclosure "ad" appeared at the very end of the post and the advertiser also seemed unaware that directly promoting liquor could potentially lead to legal trouble.

Storyboard18 caught up with Kapoor to understand transparency standards, legal regulations and her expectations from Linkedfluencers. '

Edited excerpts:

In light of the recent incidents mentioned in your LinkedIn post, what steps does ASCI recommend for influencers to ensure that their disclosures are not only made but also placed appropriately to meet the transparency standards set by ASCI and legal regulations?

The ASCI guidelines are quite clear, and already established. It says disclosure must be upfront and it must be prominent. It must not be buried under other hashtags… We have been seeing more people putting disclosures but sometimes some people put it incorrectly or put it at the end where others cannot see it properly. So then it’s not completely meeting the guidelines, just partially. Even though the rules aren’t new, we need to constantly reinforce what the law says.

 
Given the growing trend of professionals using LinkedIn as a platform for paid promotions, how does ASCI intend to educate and create awareness among influencers about the potential legal consequences of not adhering to disclosure norms, especially when promoting products like liquor?

If you are an influencer, you have to be careful about what you are promoting. When you are putting it in the form of an advertisement, the law could take note of it.

I expect a lot more due diligence from these professionals. LinkedIn is a platform where typically everyone is a professional. These people are not small-town influencers who may not necessarily know the law. These are all professional; some of them are in the advertising, communication and marketing industry. Therefore, one would expect that there is a degree of understanding of various laws that govern your work. You may not be an expert in them but have to be familiar with them if it impacts your work. Agencies need to take note of that and be aware of the governing regulations.

 

What types of rule violations are you currently observing on LinkedIn?

It’s the same as on any other platform. On Instagram, it’s relatively easier because you are seeing a product mentioned. On LinkedIn it can be a little more difficult to understand whether a post is an ad or not. You may see a product mentioned on LinkedIn but a lot of the time, the people there are giving professional opinions which are not there in an ad.

The idea here is that if someone has paid me to promote or if I have a material connection, then I need to disclose that. No one is saying that it can’t be done; it can very much be done, promoting is not illegal, but you need to disclose that it is a promotion and if you are promoting something which you are not allowed to, that can be an issue.

 

In the light of the blurring lines between organic content and paid promotions on LinkedIn, how does ASCI envision strengthening its monitoring and enforcement mechanisms to address instances where influencers fail to disclose paid promotions adequately?

On LinkedIn, it is given that people are of a certain professional calibre. There is a certain educational standard, and certain awareness about the industry and its practices. Therefore, even though ASCI has its own surveillance, we do expect people to call this kind of act out. You can tag ASCI and we will take a note of it.

ASCI’s Manisha Kapoor calls out Linkedfluencers

In a bid to bring accountability and promote responsible advertising, the government is set to introduce rules to regulate social media influencers, including penalising them by as much as ₹50 lakh for failing to disclose financial ties with brands, Central Consumer Protection Authority (CCPA) chief commissioner Nidhi Khare said.

The guidelines are expected to be released in the next 10 days.

“Guidelines for social media influencers are ready and will be released shortly. Influencers will have to disclose their ties while marketing a product, failing which they will be fined up to Rs 10 lakh," Khare said on the sidelines of a press conference as per a Livemint report. “For a subsequent offence, it will be Rs 20 lakh, and it can go up to Rs 50 lakh."

Brands across categories have latched on to influencer marketing like never before. From personal care, auto to even unregulated cryptocurrency platforms are being promoted by influencers and often without clear disclosure. Many social media influencers often refrain from inserting brand names into their posts, making them appear authentic.

In view of this, the impending guidelines are expected to bring transparency so that consumers can make informed choices.  

Burgeoning industry, lack of accountability

The Indian influencer marketing industry is estimated to grow at a compound annual growth rate (CAGR) of 25 percent till 2025 to reach a size of Rs 2,200 crore, according to GroupM INCA’s India Influencer Marketing Report.

In May 2021, the Advertising Standards Council of India (ASCI) officially launched the influencer marketing guidelines for 'consumers to distinguish between something that is promoted with an intention to influence consumers' opinion or behaviour for an immediate or commercial gain'.  

In July last year, ASCI also started monitoring digital and social media platforms for violations of its influencer advertising guidelines about labelling paid promotions by influencers.

Rules to bring accountability

Digital advertising and marketing experts believe that due to the personal connection and trust that influencers have with followers, influencer marketing has become an essential tool in brands' marketing mix. However, it still lacks accountability and fair practices.

"So far, the guidelines issued by ASCI are not being followed to the T - sometimes by creators, while many times by brands as well, who require the content to look more authentic and organic. There is definitely a need to be transparent to the audience about a paid association, which allows them to know whether the opinion is biased or unbiased. Government guidelines will help enforce that strongly," says Rohit Agarwal, founder & director, Alpha Zegus, a marketing agency specialising in the domains of gaming and lifestyle.

Deepak Sakhuja, co-founder, Ripple Links, notes that it is heartening to note that the government of India is coming up with a guideline on the same.

“This lends recognition and respect to the influencer marketing ecosystem and will also make the workings of the industry transparent, benefitting all stakeholders in the entire value chain. This step will standardize the disclosures giving a formal framework to this sector,” he says.

Upside and downside

Anjali Malthankar, national strategy director, Tonic Worldwide - a digital-first creative agency notes that while ASCI has already attempted to do so in the interest of the consumers, Centre’s guidelines will be adding a stamp of approval on some of them in intent.

“There are two sides to this action. Consumers will start seeing influencers as advertisers/broadcasters of the brands rather than reviewers. On the other hand, brands will have to look at the usage of influencers afresh. Maybe this change will lead clients to consider influencers more for top of the funnel awareness than the bottom of the funnel,” she adds.

Malthankar further states that it will also bring responsible behaviour but it will also bring fear resulting in slowing down innovative approaches to the influencer campaigns.

“For instance, it will pose challenges in creating teaser strategies for a campaign. However, for influencers, being transparent should help in gaining more trust from their followers,” she notes.

Influencer marketing, if done right, is highly rewarding in terms of consumer connect and brand building. However, lack of guidelines have also led to many influencers taking consumers for a ride which needs to be curbed.

Govt’s influencer guidelines to bring accountability, transparency

When TikTok was banned in India on June 29, 2020, it left close to 200 million users orphaned. In four years, the 15-second video platform owned by the Chinese technology company, ByteDance, had changed the way Bharat made and consumed content. With the accessibility of 15 regional languages on the app, there was a TikToker born out of narrow alleyways, ghats, river banks, and forests of the country. From Jhumri Telaiya to Tirunelveli, TikTok gave a confidence booster to users across ages, regions, classes and genders. Though for many urban Indian internet inhabitants TikTok’s videos were “cringe-inducing”, it gave wings to millions to fly and breathe the air of success and fame.

After two years of TikTok ban and several other apps and formats such as Instagram’s Reels, YouTube’s Shorts, Josh, and Moj, among a few others, getting popular, the space may seem cluttered. However, it looks like TikTok believes it can still find its ground here again.

According to a report in The Economic Times, Bytedance, the parent company of TikTok, is looking to strike a new partnership in India and hire former and new employees as it seeks to re-enter one of the world's largest internet markets.

Digital experts that Storyboard18 spoke to think this could change the content game, again, in India.

The first-mover advantage

According to a report by management consulting firm Bain &amp; Company, three in four Internet users - or 600 to 650 million Indians - will consume short-form videos by 2025, with active users spending up to 55 to 60 minutes per day. More than 200 million Indians watched short-form videos at least once in 2020, with daily active users spending up to 45 minutes a day on these platforms.
Since TikTok was one of the ﬁrst movers in the short-format content market, it has an advantage, as people are familiar with its interface, says Aarushi Sethi, business head, Pollen, the influencer marketing agency of Zoo Media. She believes this might encourage original TikTokers who were on the platform to revive their proﬁles. Interestingly, millions of creators are still called ‘TikTokers’ even though they have migrated to other platforms.

Multiple media reports indicate that home-grown apps managed to absorb 97% of TikTok creators. Sethi says a lot of them might go back on the platform that gave them fame and, in some cases, money.

Omkar Joshi, founder and chief creative officer of the digital-first consulting shop, hybrid&gt;, agrees with Sethi. However, he thinks creators will play smart and not make the mistake of putting all their eggs in one basket. He further states, “TikTok made it possible for so many Indians to escape an elitist gaze. And because the base was so broad and varied, it was free of any of the biases that are seen in everyday society. None of the alternatives today have been able to successfully achieve this at the scale that TikTok did.”

However, brands will be cautious to make a move, say experts.

Building Trust


The biggest challenge for TikTok, if it makes a comeback, is winning the trust of users, creators, and brands, says Rohit Raj, co-founder &amp; chief creative officer, The Glitch. He explains, “We have heard stories of people who quit their jobs to become content creators. When TikTok was banned, people who built their content on the platform lost whatever they created overnight. Now, what is it for them to say that history would not repeat again? So, the trust factor would be a definite question mark.” He also observes that much like the pressure that Chinese brands have been taking on in India for a while, TikTok too will face the heat.

The advantage TikTok has, in the markets it still operates such as the US, UK, and Brazil, among others, is its algorithm of virality. Other global social platforms that have short formats don’t come close to that, says Raj. According to him, “Reels made a mall, and TikTok made a DMart”, a comparison that sums up the diversity of users and creators on these platforms.

Time for brands to think like creators


Brands stayed away from TikTok for the longest time. Mainly because it was too ‘massy’. “They came on the platform because they realised that the audience they were targeting spent a lot of time on the platform. Brands will go where people are spending time. If TikTok regains popularity, they would go. But, as of now, I don’t see brands going straight up and jumping onto the platform,” opines Raj.

In 2019, when TikTok’s popularity was at its height, brands like Myntra, Zara, ShopClues, and Snapdeal; entertainment companies and OTT platforms, Dharma Productions, Hungama Music, and Viu; and personal care brand Clean &amp; Clear, among others, engaged on the platform. Some large legacy brands also experimented on TikTok, Pepsi was one of them that generated billions of views for its then #SwagStepChallenge.

“If a brand wants to be on TikTok again, they have to don the hat of a creator and not of an advertiser. Otherwise, it is like buying ad space,” says Raj candidly. hybrid&gt;’s Joshi also says that brands will flock to TikTok if users will. “They (marketers) are just going to wait and watch (as usual) and the moment something becomes a thing, they'll splurge money (sometimes thoughtfully too),” he adds.

On the other hand, Pollen’s Sethi says, TikTok gave advertisers a sneak peek into what Bharat was consuming.

With regional inﬂuencers coming to the forefront, the possible re-launch of TikTok will give them access to a newer platform and may bring back the loyalists. The other thing she says is even though TikTok is still operational internationally, however, for a comeback in India, local innovation, user retention, and stickiness, will be critical. Of course, providing assurance to creators and other stakeholders that they will be adhering to Indian data privacy laws and guidelines, will be important too, she says before signing off.

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