brand building. Of influencers, followers and faking it

A million followers, a designer wardrobe and worldwide Instagram fame are not common for a 19-year-old. But Lil Miquela, a model from California, is no ordinary teen - she’s a computer-generated influencer.

Created by an artificial intelligence (AI) startup Brud, Lil Miquela’s social media posts tend to focus on the latest fashions and the hottest events. She is not the only one doing this – many of her ilk can be seen promoting brands.

Though digital marketers realise that engaging with social media influencers yields quick results in creating and maintaining brand value, the ‘cottage industry’ of influencers that has sprung up is bringing a bad name to the game, with the negatives far outweighing the positives.

In a recent report by social media advertising company Buzzoka, which surveyed over 175 marketers, almost 50 per cent of them said they spend 2-5 per cent of their budget on influencer marketing. “This may look like a small percentage, but given that digital media itself is only 13-15 per cent of the advertising budget, this is a big number,” says Rahul Vengalil, Founder and Chief Executive Officer, What Clicks, a digital marketing audit firm.

If one extrapolates this, he says, it can be safely assumed that influencer marketing in India is worth about ₹1,100-1,500 crore. “That is a lot of money riding on mega influencers, macro influencers and micro influencers. There is generally a positive outlook towards influencer marketing, even though the medium is riddled with challenges that nobody is talking about,” adds Vengalil.

Brands tend to leverage on information gathered from digital and social touch points to gain better customer insights, improve customer experience and to initiate new product development. Most brands tend to build their influencer marketing strategies around celebrity influencers, though sometimes individuals across fields who have established their credibility with loyal followers are roped in.

However, not everything is ethical or above board. From photo editing apps that alter appearances to perfectly curated content on social media, it is getting tougher to spot authenticity. And with virtual influencers – like Lil Miquela – shaping consumers’ perception of some of the world’s biggest brands, corporates have decided to step in.

Consumer goods giant Unilever is cutting ties with digital media influencers that buy followers, as is FMCG major Procter & Gamble, with the latter looking to slash the money it spends on “wasted media” by 50 per cent.

“Unilever has given a war cry for a cleaner influencer network, primarily due to the increased number of fake followers. This is just the tip of the iceberg,” says Vengalil, adding that it is an universal problem with Facebook too deleting over 200 million fake accounts since January 2018. “This is true across platforms of Facebook, Twitter, Instagram as well as Youtube,” he adds.

Major challenges

Outlining some of the challenges that brands tend to face with their influencers, Vengalil says return on investment (ROI) and measurement is a major hurdle. “There are multiple reports and surveys done globally on this, and the majority of brands feel that measuring the ROI from influencers is the biggest challenge they face. Yet they continue to increase spends on this, because everyone is doing it,” he adds.

Brand safety is another major issue. “Usage of slang has brought about much disrepute. It is important to understand and select influencers who match the tone, language and imagery of the brand,” says Vengalil, adding that exclusivity is another bugbear.

“Influencers are often seen working with multiple brands in the same category, leading to confusion among their base. This is detrimental to brands which are investing in them,” he says.

In the US, the Federal Trade Commission (FCT) “has put clear guidelines for brands and influencers, where the association needs to be publicly mentioned. In the absence of such guidelines in India, the association between brands and influencers are often hidden from the public. This has created a situation where brands are not openly revolting or questioning the sub-standard content and association that is being generated, but some brands have expressed their displeasure, like the Taj Hotels and Four Seasons, with both brands asking for more accountability.”

Vengalil insists it is only a matter of time before other brands will jump onto the bandwagon and start asking for better control on their association with influencers.

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