MAM
Guest column: Why the new influencer marketing guidelines will be for the better
NEW DELHI: India’s advertising self-regulatory council, the Advertising Standard Council of India (ASCI), will soon announce new guidelines for the influencer industry. Today, influencer marketing is not merely restricted to reaching out to bloggers/influencers but it has acquired a prominent share in brands’ marketing strategies. There’s no second thought in saying that the market has evolved and influencers have become a mainstream medium in the advertising world.
India’s influencer market is estimated at $75-$150 million a year as compared to the global market of $1.75 billion. This is an industry that has become mainstream in the recent past and is only expected to grow as more Indians go online. Be it a small or bigger brand or even a start-up, everyone intends to get fame in the shortest time, and as a result, they opt for the influencer marketing route to connect with the audience. But then there’s the other side of the story also where digital platforms have been misleading people and frauds have been occurring incessantly.
With the new guidelines hitting the influencer industry soon, there will be a gradual change in the whole ecosystem – from brands to consumers and influencers – which will comprehensively impact the digital industry.
Transparency in campaigns
ASCI describes an influencer as having access to an audience and the power to affect their audience's purchasing decisions or opinions about a product, service, brand or experience. As per the latest guidelines, influencers post have to include a permitted form of disclosure, be it an ad, collaboration, promotion, sponsored or partnership.
This will ease the consumer understanding regarding the post and people will be mindful of the content they are consuming. Numerous times we don’t know whether it is a paid content or organically generated. In fact, the line between advertising content and paid ones is blurring on social media platforms. The new rules will create more and more transparency, and brands, as well as influencers, will be more careful of the kind of content that they are bringing to their target audience.
Fake accounts will be minimised
Given the menace of fake news on social media where a fact check of claims is absent, new guidelines will also protect consumers’ interest. In the digital industry, there has been a rampant issue of fake news, ASCI have many times vocally expressed displeasure but till now it's of no use.
Influencers many times buy fake followers to increase their reach and gain popularity. There have been instances where XYZ influencers have a massive number of followers, but the engagement on posts is poor. Brands generally look at the number of followers for the association, but if the results are not up to the mark then it’s not a great strategy.
Defiance of guidelines
ASCI is not a statutory government body therefore some organisation may prefer not to abide by the new policies. But, most organisations follow ASCI guidelines and we can expect the same in the case of influencer marketing. ASCI can issue a notice to both brand owner and influencer for violation of any guideline in the case of a consumer complaint.
The new guidelines will promote transparency, as well as uplift the level of confidence among consumers, influencers and brands. Influencers should take this as an opportunity to maintain the trust among the followers.
Better opportunities for brands to create responsible advertising
Over the years, Indian advertising fraternity has evolved. Brands are becoming more conscious of their messaging so they don’t get pulled up by ASCI, but the problem still exists. With brands reaching out to influencers rapidly, this will lead both influencers and brands to include all the contracts as mentioned by ASCI. Hence, the results will be positive and it will minimise misleading consumers, and focus on the right content with right messaging which will increase transparency to make the ecosystem better.
(The author is COO and strategy head, Grapes Digital. The views expressed here are her own and Indiantelevision.com may not subscribe to them.)
Brands
Safex Group appoints Richa Malhotra as group chief financial officer
Former Standard Chartered executive to steer finance
NEW DELHI: Safex Chemicals has appointed Richa Malhotra as group chief financial officer, strengthening its leadership team as the company prepares for the next phase of expansion in specialty chemicals and global agrochemicals.
In her new role, Malhotra will lead the group’s financial strategy, capital architecture and governance framework as Safex scales operations across multiple verticals including branded formulations, specialty chemicals and contract manufacturing.
A chartered accountant and graduate of Shri Ram College of Commerce, University of Delhi, Malhotra brings more than two decades of experience in business finance, strategic planning, corporate banking and client management.
Before joining Safex, she served as executive director, financial markets at Standard Chartered, where she led teams across India and Sri Lanka and worked closely with large corporates, global subsidiaries and commercial banking clients. Her expertise includes capital structuring, treasury operations, risk management and financial markets led financing solutions.
Safex Group promoter director and joint managing director Piyush Jindal, said the appointment comes at a pivotal time for the company. “Safex stands at an inflection point as we build an integrated platform across branded formulations, specialty chemicals and contract manufacturing. Richa’s experience across global financial institutions will strengthen our financial discipline and help unlock value across the group,” he said.
Malhotra said she was looking forward to contributing to the company’s next chapter of growth. “Safex has built a strong reputation over 35 years with its focus on integrity, innovation and agricultural insight. I am excited to be part of the organisation as it expands its footprint in India and global markets,” she said.
The appointment comes as Safex continues to strengthen its financial foundations and scale operations internationally, positioning itself for future growth milestones.
