New India influencer guidelines and what they mean | WARC | The Feed

New India influencer guidelines and what they mean

New guidelines from India’s Department of Consumer Affairs on product endorsements bring greater clarity over what influencers can and can’t do on social media, but opinion is divided as to whether spending by brands will be affected as a result. 

What’s happening

Last week’s ‘Endorsements Know-hows!’ guide sets out how celebrities and influencers on social media platforms should disclose all “material” interests when endorsing any products, services, or scheme. These could include gifts, hotel accommodation, equity, discounts, and awards. A failure to do so could lead to a lengthy ban on endorsements and a fine of up to Rs.10 lakh.

Why it matters

The new guidelines could push marketers back towards straightforward performance marketing. When users can see a post clearly flagged as an ad, that removes part of the rationale for using influencers in the first place; users may be more likely to avoid such content, with knock-on effects on metrics like reach and engagement. 

Takeaways 

Experts consulted by Medianews4u.com and Afaqs! had various takes on what impact the guidelines will have:

• While there may be a short-term impact, influencer marketing won’t be affected in the longer term, as practitioners find new ways to showcase brands and make that content as enjoyable as their regular content (Rohit Agarwal, Founder & Director, Alpha Zegus).
• The guidelines bring transparency and a framework to the channel while consumers will be better able to make their own judgements (Deepak Sakhuja, Co-founder, Ripple Links).
• Celebrities are likely to be less affected than ‘ordinary’ influencers by a post being flagged as “star appeal overpowers content” (Shweta Purandare, Advertising Compliance Expert).
• Those influencers with large followings are more likely to adhere to the guidelines simply because of their visibility; smaller influencers could still fly under the radar (Vivek Yadav, Co-founder, Cosmofeed).
• Brands will welcome clear guidelines that they can follow and so safeguard their interests (Ankita Gaba, former Co-founder of Social Samosa).

Sourced from Medianews4u.com