This article has been contributed by Neha Mohanty, Founder and Director, StarFishGlobal Communications LLP.
Fake influencers trick brands into thinking they have real reach and impact. They do this by using fake follower counts, bought likes, and comments. The authenticity of influencer marketing is damaged by these imposters, which also undermines customer confidence in companies and real influencers. They also waste marketing funds on unproductive collaborations, which reduces the return on investment (ROI) of influencer marketing initiatives and impedes the development of real innovators.
Due to the increase in the number of fake influencers, social media companies have taken action to stop fraud and encourage openness. Bot-generated likes and comments are examples of fraudulent engagement strategies that algorithms have been trained to recognize and penalize. To identify real influencers and give consumers information about the demographics and legitimacy of an influencer’s audience, platforms have also implemented verification badges and transparency tools.
Many people have turned to dishonest methods in an attempt to seem like significant characters on the internet in their pursuit of wealth and fame. In the digital sphere, fake personalities, inflated engagement metrics, and followers are all too common. By using fake influence, these so-called influencers trick both real followers and brands.
Impact On Brands
The abundance of fraudulent influencers presents serious difficulties for brands. Marketing funds are wasted and brand trust is damaged when companies work with dishonest influencers. Furthermore, connecting with bogus influencers may provoke a negative response from disappointed customers, harming a brand’s reputation over time.
The Erosion of Trust
Influencer marketing relies on trust between influencers and their audience. The rise of fake influencers, who throw doubt on the legitimacy of social media exchanges, is hurting trust. Sincere ties between influencers and their followers foster an invaluable sense of loyalty, that brands loose out on when they engage with bogus influencers.
Why Transparency Is Important?
Transparency in influencer partnerships builds credibility for both the brand and the influencer, leading to long-term success and loyalty from their audience. Ultimately, being transparent in all aspects of influencer marketing fosters a genuine connection between all parties involved and helps to create a more authentic and trustworthy online community Brands should place a high premium on collaborating with respectable and honest influencers. They should do a fake influencer check to understand if the influencer has real or fake bot followers, lot of tools are available for the same. In addition to being genuine about their partnerships and disclosure of sponsored content, sincere influencers also actually know their audience.
Micro-influencers Emergence
Micro-influencers are real role models in the influencer marketing space, especially when mega-influencers lose their attraction. Because of their modest but extremely engaged followings, micro-influencers provide advertisers with a chance to build a deeper relationship with targeted audiences. Because of their genuine relationships with their followers, these influencers foster a precious feeling of trust in today’s cynical world.
Influencer Marketing Market Size Worldwide from 2016 to 2024
The Power of User-Generated Content
User-generated content (UGC) can be used as a valuable marketing tool by brands, especially in the age of fake influencers. Brands can foster genuine connections and communities around their products and services by encouraging customers to create and share content. This may help them eliminate the need to use traditional influencers in their marketing campaigns. Amplifying real voices and stories through user-generated content (UGC) is a great way to foster brand loyalty through direct customer engagement.
Brands are reassessing their marketing tactics in the face of the confusion caused by phony influencers, moving toward initiatives with a purpose that connect with customers more deeply. Social responsibility, authenticity, and openness are now necessary rather than optional elements of effective marketing efforts. Brands may establish authentic connections and gain the trust of consumers by connecting with issues and values that resonate with their target demographic.
Conclusion
As a result, sincerity, openness, and sincere relationships are key components of influencer marketing in the era of faux influencers. To successfully navigate the changing digital landscape, brands need to emphasize working with influencers who exemplify these values, utilizing technology, and adopting innovative approaches. Brands can overcome the noise of fake influencers and create enduring relationships with their audience by adhering to their core principles and interacting with customers in meaningful ways.
In addition to screening influencers, brands can protect themselves against fraudulent influencers by varying their marketing approaches and distribution methods. Influencer marketing is still a powerful tool for connecting with target audiences and encouraging interaction, but it should work in tandem with other marketing campaigns like paid advertising, community development, and content marketing rather than taking their place. Brands may avoid the risks associated with an over-reliance on influencer collaborations and adjust to changing consumer tastes and habits by diversifying their strategy.
On YouTube, several youthful content creators have amassed a massive following by posting videos in which they try on clothes, evaluate products, or demonstrate new makeup looks. A Delhi-based YouTuber named Sejal Kumar has 883,000 subscribers. In a video called “How I get ready for a shoot,” she walks her viewers through her procedure for getting ready, all the while gently promoting the Veet electric trimmer and how it saves her from having to rush to the salon at the last minute. The owner of the brand, Reckitt Benckiser (India) Ltd., funded the video’s production.
In the ever-changing realm of online video creation, YouTube stars from India have emerged as powerful advocates for many brands. Several factors, including the influencer’s subscriber count, average views, engagement rate, and the brand’s unique requirements, determine the charges for these promotional services. To give you an idea, a promotional video from an Indian YouTuber with a moderate following of about 50,000 subscribers would cost anything from 20,000 to 50,000 INR.
On the flip side, famous YouTubers with millions of fans can charge 2 lakhs INR or more for just one ad. But brands must not limit themselves to only subscriber counts. When comparing influencers, it’s usually better to go with one with a smaller but more engaged audience because they tend to deliver more value for money. The promotional fees are heavily influenced by the type of content and the intended audience.
Consider a firm that is trying to reach tech-savvy consumers with an ad for their product. In such instances, they may choose an influencer whose audience consists primarily of young adults and whose content is centered on technology. The opposite is true for household goods brands; they may favor influencers who cater to stay-at-home moms and their families.
To meet the unique requirements of brands and work within their budgets, YouTubers may sometimes provide bespoke promotional packages. Reviews, sponsored videos, shoutouts, and product placements in their normal material are all examples of what can be considered these.
Influencers may negotiate for free goods and services in addition to monetary remuneration as part of their promotional contract. For startups or smaller firms on a tighter budget, this could be a great way to contact their customers without breaking the bank.
Influencer marketing is a significant deal for Amazon India, one of the largest eCommerce platforms in the country. Actors, singers, and YouTubers from India are among the influencers that the brand has teamed up with to market its wares. Influencer marketing is another strategy that Amazon India employs to boost sales and awareness of the business. Indian influencers have been working with Myntra, a leading fashion shop in India, to promote the brand’s wares. Myntra has collaborated with numerous influencers, including Bollywood stars and fashion bloggers, to produce content that speaks to its demographic.
The top Indian eCommerce platform, Flipkart, has been advertising its wares through the use of influencers. To reach its demographic, the brand has collaborated with a wide range of prominent figures, including Bollywood actors and lifestyle influencers. Influencer marketing is nothing new for L’Oréal India too; the company has been doing it for some time. The business has teamed up with several popular Indian artists, musicians, and YouTubers to produce material that speaks to its demographic.
Developments and Data Regarding the Market
In 2025, the influencer marketing sector in India is projected to be worth Rs 2,200 crore, with a compound annual growth rate of 25%, according to the Influencer Marketing Report.
Influencer Marketing Market Size Worldwide
The rise of short-form video formats on sites like YouTube, Facebook, and others has contributed to the explosion in social media consumption, and marketers’ increased efficiency in gathering data for social media marketing is a major factor in this trend. On average, Indians spend 2 hours and 25 minutes each day on social media, and there are more than 448 million active users in the country.
From being a fad to an essential tool for modern brands, influencer marketing has gone a long way. Now considered an essential advertising approach, influencer marketing has been incorporated into 93% of marketing efforts.
There will be no stopping the growth and change of influencer marketing in India. Brands can get enormous benefits from utilizing influencers in certain industries. The top four categories that account for 70% of influencer marketing volume are personal care (25% of the total), food and beverage (20%), fashion and jewelry (15%), and mobile and electronics (10%), according to “The Indian Influencer Marketing Report” by INCA.
There is a lot of space for innovation and participation in influencer marketing in India, thanks to the country’s thriving startup ecosystem and the fact that larger brands are also trying to reach their target audience.
FAQs
What are the top categories that account for the maximum percentage of influencer marketing?
The top four categories that account for 70% of influencer marketing volume are personal care (25% of the total), food and beverage (20%), fashion and jewelry (15%), and mobile and electronics (10%).
What will be the anticipated worth of influencer marketing in 2025?
In 2025, the influencer marketing sector in India is projected to be worth Rs 2,200 crore.
What is influencer marketing?
Influencer marketing is a strategy where brands collaborate with individuals with a large and engaged following on social media to promote their products or services to a targeted audience.
In the expansive landscape of influencer marketing, where global reach often takes the spotlight, there’s a growing recognition of the unique impact that local influencers can have. For businesses aiming to connect with their immediate communities and foster a more personal brand-consumer relationship, the search for local influencers becomes paramount. But how to find influencers in your area requires a strategic approach that goes beyond traditional methods.
This article delves into the intricacies of navigating the search for local influencers, offering insights and practical tips to help businesses identify, collaborate with, and leverage the power of influencers in their local neighborhoods.
Local influencers bring a hyperlocal connection that resonates deeply with their audience. Their content often revolves around places, events, and products that are familiar to the local community, fostering a sense of relatability that might be challenging for influencers with a broader focus.
2. Community Trust and Credibility
Local influencers are embedded in their communities, and this proximity builds trust and credibility. Their recommendations are perceived as more authentic, creating a ripple effect within the local community. This trust is an asset for businesses looking to establish a strong local presence.
3. Niche Market Understanding
Local influencers often have a nuanced understanding of niche markets within their region. This is particularly advantageous for businesses catering to specific demographics or industries. Whether it’s a local fashionista, food critic, or fitness enthusiast, influencers deeply embedded in their niches can offer targeted reach.
Strategies for Finding Local Influencers
1. Utilizing Social Media Platforms
Social media platforms are treasure troves for finding local influencers. Leverage location-based search features and hashtags on platforms like Instagram, Twitter, and TikTok. Explore local events, businesses, and community pages to discover influencers actively engaged in your area.
2. Local Content Creators and Bloggers
Beyond traditional social media influencers, consider local content creators and bloggers. These individuals often maintain blogs or websites dedicated to local happenings, businesses, and lifestyles. Engage with these content creators to tap into their local audience.
3. Collaborating with Local Businesses
Forge partnerships with local businesses and establishments. Many local influencers collaborate with businesses in their area for mutual promotion. Reach out to cafes, boutiques, and other local enterprises to inquire about influencers they may have worked with or recommend.
4. Attending Local Events
Participate in local events, gatherings, and meet-ups. These provide opportunities to meet influencers in person, understand their vibe, and explore potential collaborations. Many influencers attend and cover local events, making them excellent candidates for partnerships.
When evaluating local influencers, prioritize authenticity and alignment with your brand values. Local audiences can discern genuineness, and collaborating with influencers whose values align with your business enhances the authenticity of the partnership.
2. Engagement Metrics
While follower count is a consideration, focus on engagement metrics. Local influencers with a highly engaged audience often have a more significant impact on their community. Look for influencers who receive meaningful comments, shares, and likes on their content.
3. Content Quality
Assess the quality of the influencer’s content. High-quality visuals, compelling storytelling, and a consistent aesthetic contribute to the overall appeal of the influencer’s brand. Quality content reflects positively on your brand when shared by the influencer.
4. Geographic Relevance
Ensure that the influencer’s reach aligns with your target geographic area. While some influencers might have a broader reach, their core audience should have a significant presence in your local community.
Building Relationships with Local Influencers
1. Personalized Outreach
When reaching out to local influencers, personalize your outreach. Demonstrate that you’ve researched their content, appreciate their influence in the local community, and have a genuine interest in collaborating. Personalization fosters a positive first impression.
2. Offering Value
Approach influencer collaborations with a mindset of mutual value. Consider what unique value your brand brings to the influencer and their audience. This could be exclusive promotions, events, or insider insights that align with the influencer’s content.
3. Long-Term Partnerships
For sustained local impact, aim for long-term partnerships with influencers. Building ongoing relationships allows influencers to become genuine advocates for your brand, integrating it seamlessly into their content over time.
4. Local Events and Launches
Organize local events or product launches in collaboration with influencers. These events not only create buzz but also provide influencers with engaging content opportunities. The synergy between your brand and local influencers during such events can be powerful.
Measuring the Impact of Local Influencer Collaborations
1. Local Foot Traffic
For brick-and-mortar businesses, monitor local foot traffic during and after influencer collaborations. An increase in local visits and sales can be directly attributed to the impact of the influencer campaign.
2. Social Media Metrics
Utilize social media metrics to measure the impact of influencer collaborations. Track the reach, engagement, and impressions generated by the influencer’s content. Analyze the sentiment of comments and direct messages to gauge audience response.
3. Coupon Codes and Offers
If applicable, use unique coupon codes or offers tied to influencer collaborations. This allows you to track the conversions directly attributable to the influencer’s promotion.
4. Brand Mentions and Sentiment
Monitor brand mentions and sentiment on social media platforms. An increase in positive brand mentions within the local community indicates a successful influencer collaboration.
Legal and Ethical Considerations in Local Influencer Collaborations
1. Disclosure and Transparency
Ensure that influencers disclose their relationship with your brand transparently. Adhering to disclosure guidelines is not only ethical but also builds trust with the audience and aligns with regulatory standards.
2. Clear Collaboration Agreements
Before commencing any collaboration, establish clear agreements outlining expectations, compensation, and usage rights. Clarity in collaboration agreements helps avoid misunderstandings and ensures a smooth partnership.
Conclusion: The Power of Local Influence
As businesses strive to connect with their communities in a more authentic and meaningful way, the search for local influencers emerges as a strategic imperative. Local influencers bring a unique blend of authenticity, community trust, and niche understanding that can significantly impact brand perception within the local landscape.
By navigating the search for local influencers strategically, businesses can tap into the power of local influence, fostering connections that go beyond transactions and contribute to the vibrant tapestry of their local communities.
This article has been contributed by Ms. Sahiba Dhandhania, CEO, Confluencr.
Influencer marketing has become one of the most popular advertising strategies lately and brands are reaching out to social media influencers to connect with their target audience. With that, a trend of audiences being constantly swamped with advertisements and marketing plans to influence their choices is seen evidently.
However, with the rise in influencer marketing, concerns about the authenticity of influencer marketing and the need for consumer protection have also risen.
“A whopping 79% of problematic ads were found online, highlighting the challenges in the digital advertising world. ASCI’s focused monitoring mechanisms boosted digital surveillance to combat objectionable content in the medium. 98% of overall ads processed required some form of modification,” – Manisha Kapoor, CEO and General Secretary of ASCI.
As a response to these concerns, The Advertising Standards Council of India (ASCI) has recently revised its guidelines for influencers to make sure there is better transparency and authenticity in influencer endorsements.
Disclosure Label Requirement
The ASCI’s revised guidelines have many crucial changes. One of the most important and prominent changes is:
Introduction of a disclosure label: A disclosure label is required in all influencer advertisements. This means, that influencers must distinctly disclose when they post an advertisement on social media, using an easily visible and identifiable label on their posts.
The disclosure label must be specified in the text-based posts or blogs and at the beginning of the advertising content in podcasts or audio posts.
These guidelinesaim to ensure that consumers are conscious of times when they are being marketed and can make informed decisions about the products they purchase.
Extension to Health and Financial Influencers
The extension of the guidelines to cover health and financial influencers is another significant change made in the revised guidelines. The ASCI mandates that influencers in these areas must have relevant qualifications and disclose them prominently when endorsing related products.
For example: Influencers endorsing products related to health, nutrition, or fitness must have relevant qualifications in nutrition, physiotherapy, psychology, etc., depending on the nature of the advice provided.
Similarly, financial influencers can only provide investment-related advice after being certified by the Securities and Exchange Board of India (SEBI). This ensures that consumers receive accurate and reliable information from qualified experts.
The ASCI has also expanded the definition of Celebrities in its code to include Social Media Influencers:
The code now defines celebrities as “Individual who either earns a compensation of Rs 40 lakh or has a social media following of 500,000 or more on a single social media account”. This change reflects the changing scenarios of influencer marketing and aims to fortify consumer protection.
The guidelines ensure that the celebrities share their genuine opinions about the products, backed by their research, knowledge, or experience of the product or service being advertised. Celebrities must also conduct their assessment to justify the claims made in the mentioned ads.
“This approach will prove advantageous for influencers, as brands are likely to prioritize those who comply with the guidelines. Influencers have a strong connection with their followers, and as a result, they will strive to benefit their followers’ interests. This dedication will, in turn, contribute to safeguarding the welfare of their followers,”Preety Singh Co-Founder and Managing Director of Boomlet Group.
Promoting Authenticity and Consumer Trust
The ASCI’s revised guidelines emphasise the importance of authenticity and its maintenance in influencer endorsement and aim to build consumer confidence. The guidelines encourage influencers to build their voice and style when endorsing products and to avoid making any misleading claims or exaggerations. The revised guidelines also require influencers to disclose material connections they have with the brand, such as receiving free products or payment for endorsements. This ensures that consumers receive honest information about the products they purchase.
Transparency and authenticity are important to influencer marketing, and people’s support helps in the fulfillment of government rules to certify these values.
Future Regulatory Landscape
As influencer marketing continues to grow, governments will likely introduce more guidelines and rules to protect consumers and promote responsible practices. Brands and influencers must stay informed about these regulations revise their strategies and plans according to the guidelines and avoid potential legal issues.
In conclusion, ASCI’s revised influencer guidelines aim to:
Create more reliable advertising conditions and build consumer trust.
The guideline requires the influencers to use a “disclosure label” whenever they post any advertisements on social media.
The revised guidelines extend to health and financial influencers and mandate that they must hold relevant qualifications and disclose them prominently when endorsing products related.
Today, these revised guidelines are seen as a step in the direction of ensuring consumer protection and maintaining authenticity.
The creator economy gained significant traction prior to the COVID era, experiencing a surge during the pandemic when content consumption soared. As we transition into a post-COVID landscape, the outlook for creators appears less favorable.
While figures like Ankur Warikoo, Ranveer Allahbadia, Akshat, Sharan Hegde, Bhuvan Bam, and Carry Minati have mastered sustainable income generation on platforms like YouTube, Instagram, and LinkedIn, the majority struggle to translate content creation into financial stability. Branded creators such as Kamiya Jani and Miss Malini represent the exception rather than the rule.
For a substantial portion of creators—about 95%—the creator economy seems exaggerated. Despite engaging in various creative endeavors, from dancing to emotional performances, many struggle to establish a consistent income stream for long-term survival. Brands also recognize this, utilizing influencers temporarily before moving on to the next trending figure.
“People only have time to consume so much. So you have to be the best, or in the top few, in any given space,” remarks Austin Rief, CEO of Morning Brew. The intense competition makes it challenging to thrive in a saturated market, with only a fraction of creators reaping substantial financial rewards.
Platforms like Gumroad and OnlyFans aim to extract fees ranging from 5-20% from an industry where even the top 1% doesn’t guarantee millionaire status. The addressable market is not colossal, making it improbable for any creator to achieve a billion-dollar business. Only a few creators manage to earn a million dollars or INR 1 crore annually, and their sustained success is far from guaranteed.
The fleeting nature of a creator’s career exacerbates the challenges.
The once-promising projections of the Creator Economy reaching $100 billion now seem questionable. As the advertising market contracts amid a slowdown, many content creators are expected to face financial difficulties.
In the global surge of the digital creator economy, Indian content creators confront a unique challenge: struggling to distinguish themselves in an intensely competitive landscape. Tanya Mehra, an Instagram Mom Blogger and Influencer, points out the difficulty of standing out among millions of creators, leading to challenges in securing brand partnerships and sponsorships, and hindering sustainable revenue generation.
Ravish Shetty, a Digital Content Creator, highlights the minimal compensation from short-format social media platforms, leaving branded content as the primary revenue stream. However, copyright issues, particularly with licensed songs in long formats, pose additional obstacles to earnings.
Navdeep Sharma, co-founder at ReelStar, underscores the multifaceted challenges hindering the growth of Indian creators, including monetization hurdles, copyright concerns, and limited access to resources and partnerships. These obstacles contribute to the slow progress of India’s creator economy, leaving untapped talents.
Faisal Khan, founder of MotorBeam and FK-R, echoes the influencers’ struggle, emphasizing that content monetization is a primary challenge. He also mentions difficulties in adapting to dynamic technology, changes in digital platforms, and creating content suitable for various formats as serious hurdles in the digital influencer economy.
The Evolving Landscape of Content and Commerce in India
India’s dynamic digital landscape has given birth to a thriving creator economy, where individuals leverage creativity and entrepreneurial spirit to produce and monetize content across diverse online platforms. This not only reshapes how people consume entertainment and information but also generates numerous economic opportunities for individuals and businesses.
The Rise of Indian Creators
With over 100 million individuals actively creating content on platforms like YouTube and Instagram, India hosts a diverse community of creators spanning various genres. Their impactful content resonates with large and engaged audiences, positioning them as influential figures within their niches.
According to the Animeta report referenced earlier, the expansive creators’ ecosystem includes around 922,000 individuals with a minimum of 100 followers across YouTube, Instagram, and Facebook. These creators fall into distinct categories: Nano (53%), with fewer than 10,000 followers; Micro (36%), ranging from 10,000 to 100,000 followers; Macro (10%), commanding 100,000 to 1 million followers; and the remaining (0.8%), designated as Mega creators, boasting 1 million or more followers.
Examining this evolution of influencers, Sagar Pushp, CEO, and co-founder at ClanConnect, notes that the surge of influencers in India is primarily propelled by micro and nano influencers situated in Tier 2-3 regions. However, this growth poses challenges for the creator economy, as a significant percentage of Indian creators from smaller towns and cities lack access to paid collaboration opportunities with brands.
Further expanding on this perspective, Himanshu Arora, co-founder at Social Panga, emphasizes the extensive Total Addressable Market (TAM) for these content creators spread across India. He underscores the need for a reevaluation of how content creators establish a pan-India presence. Collaborations between artists, digital agencies, and policymakers become crucial as the digital landscape evolves, supporting sustainable growth and addressing the challenges faced by Indian creators.
Archit Agarwal, founder and CEO at Tikshark Solutions, underscores that these challenges not only impact the sector’s credibility but also constrain Indian creators from competing effectively on the international stage. Initiatives from both the government and private sector, coupled with the increasing penetration of the internet and smartphone usage, are paving the way for a more inclusive and thriving digital creator ecosystem in India.
Monetization Strategies for Creators
Indian creators employ various monetization strategies to generate income, including brand collaborations, affiliate marketing, advertising (display, video, and affiliate marketing), sponsored content, merchandising, fan subscriptions, direct payments, digital products, live streaming, consulting/coaching, events, and licensing.
Value of Influencer Marketing Industry in India From 2021 to 2022, With Projections Until 2026
Triumph Techniques
Selecting an effective monetization strategy depends on factors such as audience demographics, content type, platform choice, and financial goals. Considering these elements ensures creators align their strategy with their unique circumstances.
The Economic Impact of the Creator Economy
The creator economy significantly contributes to India’s economy, with YouTube’s creator ecosystem alone contributing over Rs 16,000 crore to the GDP in 2022, supporting the equivalent of 7.5 lakh full-time jobs. The creator economy is poised for exponential growth, further driving economic expansion and job creation.
With a remarkable mobile penetration of 77% among the total Indian population and one of the lowest data costs globally, the creator economy holds immense importance. It serves as a pivotal platform, enabling millions of talented individuals to exhibit their skills, connect with a global audience, and capitalize on their content.
The creator economy takes on particular significance in India, where a substantial population of tech-savvy youth is eager to showcase their talents. With over 1.3 billion people in the country, more than 600 million are internet users, positioning India as one of the largest online markets globally. This demographic landscape has spurred a substantial demand for content, prompting creators to respond by producing high-quality, captivating content that has garnered attention not only locally but also from audiences around the world.
The convergence of several factors, including a sizable and youthful population, a burgeoning internet user base, escalating video viewership, the democratization of content creation tools, and the rapid expansion of the creator community, paints a promising future for the nation.
Meta strives to furnish creators with the means to express their creativity, foster collaborations with both creators and brands, and establish a secure environment that encourages people to comfortably express themselves.
Significantly, the organized influencer marketing sector is projected to surpass ₹3,000 crore in FY24, with the revenue share of micro-influencers expected to rise from 9% in the current fiscal year to 14% in FY24.
Meta India head, Sandhya Devanathan highlights the pivotal role played by the surge in short-form videos, particularly on platforms like reels. She notes that more individuals from smaller cities and towns are leveraging reels to showcase their talents, gaining national recognition. With reels, creators now have a global platform to exhibit their skills, marking a significant positive shift in their trajectory.
YouTube: The Birthplace of the Creator Economy
Headwinds and Promising Horizons
Despite rapid growth, the creator economy in India faces challenges such as content discoverability, a lack of robust monetization infrastructure, and issues with copyright protection. However, these challenges coexist with opportunities driven by increasing smartphone and internet penetration, rising disposable incomes, and the potential of emerging technologies like blockchain and artificial intelligence to revolutionize monetization and content discovery in the creator economy.
Advanced technologies like ChatGPT, OpenAI’s GPT-3, Hugging Face, and Google’s BERT hold the potential to revolutionize the landscape of the creator economy, offering enhanced capabilities for efficient and personalized content creation. Through the integration of AI and machine learning, content creators gain the ability to produce top-tier content at an accelerated pace, enabling them to expand their enterprises and connect with broader audiences. This transformation may intensify competition within the space, compelling creators to consistently innovate and adapt to maintain a competitive edge.
It is crucial to emphasize that while these technologies have the capacity to disrupt the industry, creators remain the focal point of the creator economy. Despite the evolution of tools and technologies, the fundamental requirement for imaginative and innovative individuals to generate compelling content will endure. The symbiotic relationship between creators and technological advancements ensures that, as the industry evolves, creative individuals will continue to play a central role in shaping the content creation landscape.
FAQs
What are the various strategies applied by Indian creators to generate income?
Indian creators employ various monetization strategies to generate income, including brand collaborations, affiliate marketing, advertising, sponsored content, merchandising, fan subscriptions, direct payments, digital products, live streaming, consulting/coaching, events, and licensing.
What are the categories of creators on the social media platforms?
The various categories of creators are based on the number of followers: Nano (53%), with fewer than 10,000 followers; Micro (36%), ranging from 10,000 to 100,000 followers; Macro (10%), commanding 100,000 to 1 million followers; and the remaining (0.8%), designated as Mega creators, boasting 1 million or more followers.
What do you feel when you read the term “virtual influencers”? Are you mind-boggled, amazed, interested, not sure, intimated, or wondering who they are? – Whatever you feel, one thing is certain: virtual influencers cannot be ignored anymore and are here to stay.
Let’s simplify who a virtual influencer is. As the name suggests, virtual influencers are not real; they are virtual. They are a set of computer-generated images or videos created by a team of 3D artists, software engineers, art and creative directors, gaming experts, and content creators. They are pretty much like any animated movie character. However, the key difference is that virtual influencers have a public persona, have a solid backstory, and are virtually living their lives on a daily basis, much like any of us! For example, Naina Avatr, with an Instagram following of 156K, is from Jhansi and has relocated to Mumbai. She dreams of being an actor someday and is often papped by the media at celebrity events or even on her way to the Mumbai airport!
Why Brands are Queuing up to Virtual Influencers
The world is sitting up and taking notice of these virtual influencers, and the numbers are proof. Brazil’s virtual influencer star Lu Do Magalu boasts a Facebook following of 14 million, almost on par with former Brazilian President Jair Messias Bolsonaro’s 15 million followers on Facebook. India’s very own first virtual influencer, Kyra Onig, has amassed 247K followers since her debut on Instagram in January 2022 and clocks several million views with her reels.
These numbers are not surprising considering these virtual influencers are grabbing eyeballs by the millions. According to research and analytics firm Demandsage, 60% of the world population (roughly around 4.9 billion), use social media. This number is expected to rise to 5.85 billion by 2027. China, India, and the USA hold the top three slots for having the most social media users in the world. India stands second with 755 million social media users—an impressive penetration rate of 33%.
For such countries that consume social media much like food, it’s no surprise that companies and brands are making a beeline to hire these virtual heroes. In India, Kyra has already endorsed brands such as boAt Lifestyle, Wow Skin Science, Colors TV, and American Tourister India, to name a few.
The well-known virtual robot model Lil Miquela from San Francisco has brands like Prada, Dior, and Calvin Klein to her name. E-commerce retailer Myntra recently introduced their virtual fashion influencer Maya to boost engagement with their customers during their recent End of Reason Sale campaign.
So what makes these virtual influencers attractive brand ambassadors? To begin with, a lot of social media users are hooked on their daily life changes and even their backstories. For example, Kyra’s creator–Himanshu Goel– divulged her backstory on a chat show, about Kyra being the metaverse and having lost her way and her memory. Now, isn’t this almost like watching a soap opera-cum-reality show play out on social media?
Pros and Cons of Virtual Influencers
However alluring they may seem, hiring a virtual influencer can be a double-edged sword.
Pros:
Budget-friendly: Hiring virtual influencers can save a company tons of money. As of today, influencer marketing is a huge industry, as shown by a survey carried out by the research company Statista. As of 2022, the report pegged the influencer marketing industry in India at more than a whopping 12 billion rupees. It is only expected to burgeon further over the next 5 years at a growth rate of 25%. This would value the Indian influencer marketing market at 28 billion rupees by 2026!
Value of Influencer Marketing Industry in India from 2021 to 2022, With Projections Until 2026
Flexibility: It not only saves money but also a lot of energy and time for companies. There are no appointments, schedules, or travel itineraries to be coordinated; there are no creative disagreements or personal likes and dislikes to deal with. A virtual influencer’s physicality and emotional feel can be tailor-made to suit the product or service.
Risk-free: A virtual influencer will say and do exactly what a brand wants them to, unlike a real influencer, who may have a slip of the tongue or suffer from a bad hair day. In short, companies can breathe easy, as it would mean no controversies that could mar the brand image. For instance, a recent incident highlights the need to exercise caution while hiring influencers. In May, market regulator Securities and Exchange Board of India fined and barred a well-known finfluencer (financial influencer) from trading for over a year and even fined him for flouting investment advisory norms.
Conversions: Virtual influencers are still taking baby steps, but the results are slowly but surely yielding. According to Japanese media company Dentsu, which has a team of virtual influencers, there has been a 41% hike in profits by brands using special characters in campaigns. This may sound like music to marketing managers who are constantly tiptoeing on a tight budget. And this is only the tip of the iceberg. In a recent report by Dentsu India’s research division—Recogn and Boomlet Group—the virtual influencer market is expected to “grow rapidly” in the coming years. New technologies and trends, such as virtual reality and artificial intelligence, will enhance the potential and capabilities of virtual influencers.
Orchestrated: One area where real influencers have an advantage over virtual influencers is that the former may have more room to improvise, crack an impromptu joke, or even make those instant, real humane connections. Behind every perfectly-looking post of a virtual influencer is a hardworking team of writers and graphic designers scripting out that perfect content.
Lack of Authenticity: A virtual influencer can be a good source of entertainment, but his or her authenticity is questionable when it comes to promoting a brand. The younger generation seems to be more open to the idea of a virtual influencer, while the middle-aged and pre-internet generation may take their time to get convinced about products being endorsed by a non-existent person.
Ethically Questionable: There is ambiguity about using virtual influencers to endorse products, especially regarding harmful products. With the use of more technologically advanced software, such as deep fake technologies, there is also a risk of fraud, cyberattacks, and false propaganda. To deal with misleading content and ensure transparency, the Government of India in August released guidelines for celebrities, influencers, and virtual influencers in the field of health and wellness. However, there still remains a vast grey area that is outside any purview or regulation.
No Mass Appeal – India is a diverse market, from its culture to socioeconomic strata. Virtual influencers may be effective in targeting a small group i.e. social media users who are active and aware. However, a chunk of India lives outside virtual walls in real-life settings. A virtual influencer may thus find it hard to connect to the masses who face harsh ground realities.
Conclusion
If the way forward is virtual, virtual influencers are likely to play a major role in this transition. Facebook’s Mark Zuckerberg once famously said, “Nothing influences people like a recommendation from a trusted friend”. Whether virtual influencers can befriend internet users and earn their trust remains to be seen. For now, it’s best to keep an open mind and an empty slate regarding collaborating with the next generation of influencers on the internet.
FAQs
Who are Virtual Influencers?
Virtual Influencers are a set of computer-generated images or videos created by a team of 3D artists, software engineers, art and creative directors, gaming experts, and content creators. They are pretty much like any animated movie character.
What do Virtual Influencers do?
Virtual Influencers are designed to interact with and engage audiences on social media platforms. These digital avatars are completely fictional and are created using technology that includes 3D modeling, animation, and artificial intelligence.
What are different types of Virtual Influencers?
There are three main types of virtual influencers:animated humans, non-humans, and life-like CGI humans.
Why do brands use Virtual Influencers?
Virtual influencers are designed to establish meaningful connections with their target audience. They offer brands a means to steer clear of controversies, provide flexibility, and serve as a cost-effective marketing solution for small businesses.
The advent of generative AI has enormous potential to not only increase the overall productivity of businesses, but also to complement many people’s works in the areas of journalism, education, writing, and more. A report by the United States investment bank Goldman Sachs, in a recent report, highlighted the fact that generative AI has the potential to transform the labor market and even produce more jobs.
Typically, the use of technology-led automation results in the loss of jobs, but it is not necessary since technology can also enable more job creation by increasing productivity and inducing labor demand. Generative AI is one such technology. Inventions like ChatGPT find several usages to assist people, and the marketing sector is no different. With increasing global smartphone penetration, marketers are realizing that many people spend a significant amount of their time on smartphones and that it could be the perfect platform to bring more advertising and marketing campaigns to people. ChatGPT could be very useful in this regard.
Additionally, Marketers need a tool that can help them to generate high-quality content, personalize content for different audiences, answer questions from customers and prospects, generate leads, and improve customer service. While marketing professionals do this regularly and show immense creativity in this regard; so, what if Artificial Intelligence (AI) can help? OpenAI’s ChatGPT— now backed by GPT-4— is a powerful AI tool that too can fulfill all these needs. It can generate high-quality content that is needed in marketing, personalize that content for different audiences, answer questions from customers and prospects, generate leads, and improve customer service as well. It can help marketers to improve the efficiency and effectiveness of their campaigns.
What is ChatGPT?
ChatGPT is a large language model-based AI chatbot developed by technology firm OpenAI that is effectively working on deep learning in partnership with Microsoft, capable of generating human-like creative responses when prompted. It is capable of writing lengthier text responses and understanding lengthier text contexts as well. Empowered with GPT-4 (short for Generative Pre-trained Transformer), ChatGPT can also analyze visual inputs. In terms of creativity, it can generate different creative text formats, like poems, code, scripts, musical pieces, emails, letters, etc.
ChatGPT is presently free of cost and available to everybody. However, its upgraded version, the ChatGPT Plus, is not free, and you need a 20 USD subscription to access its features.
People that work in marketing, and create creative ads, know that ChatGPT is the perfect tool for marketers like themselves who want to take their campaigns to the next level. With its ability to analyze large amounts of data and generate creative ideas, ChatGPT can help marketers create effective, efficient, and memorable campaigns that could resonate with their target audience. Whether you’re looking to increase brand awareness, drive traffic to your website, or boost sales, ChatGPT has got you covered. In fact, as a large language model trained by OpenAI’s massive dataset of codes and texts, ChatGPT is uniquely positioned to bring more creativity to marketing.
So, here are 11 ways ChatGPT can be useful to Marketers:
Marketers can use ChatGPT to generate high-quality content, such as blog posts, social media captions, email campaigns, and articles. It can be used for writing product descriptions tailored to the target audience’s preferences and interests. This can save marketers a lot of time and effort, plus it can be helpful to ensure that their content is engaging and informative. Marketers often struggle with creating engaging and personalized content, and ChatGPT can help by producing a quick wireframe and providing relevant resources to help them with that.
Personalize Content
Marketers Using ChatGPT for Personalize Content
ChatGPT can be used to personalize content for different audiences as well. It can analyze data to segment the target audience based on specific characteristics such as age, gender, geographic location, and interests. This segmentation allows marketers to personalize content and campaigns for different groups and increase the chances of audience engagement. Marketers can tailor the content to the interests and needs of the audience or by using different language styles to appeal to different demographics simply by prompting ChatGPT. Pretty easy!
Copywriting
Marketers Using ChatGPT for Copywriting
Another significant task marketers could efficiently perform by taking the help of ChatGPT is copywriting. It can assist marketers in writing persuasive and compelling copy for advertisements, emails, and other marketing materials that drive conversions. By providing ChatGPT with the product or service’s details and the target audience’s characteristics, Marketers can get a compelling and relevant copy that aligns with the brand’s voice and tone. This will effectively assist their work to a great extent by creating more effective marketing materials that are more likely to persuade customers to take action.
I got ChatGPT to build me an entire marketing campaign
Research
Marketers Using ChatGPT for Research
The best use of ChatGPT is its ability to provide effective results when you do your market research. It can be used to research multiple topics by generating text, finding trends and reports, surveys, and translating languages, thus, helping marketers stay up-to-date on the latest trends and develop effective marketing campaigns.
Additionally, ChatGPT can help marketers discover relevant and high-traffic keywords for SEO and PPC campaigns. Using ChatGPT, marketers can develop a comprehensive list of keywords that align with the brand’s products or services and the target audience’s search intent.
Generating Leads
Marketers Using ChatGPT for Lead Generation
Marketers want their marketing campaigns to work and generate leads. So, it is more beneficial to make campaigns relatable to the demography you are targeting. ChatGPT can generate leads by qualifying prospects and identifying those most likely interested in a product or service. This can effectively help marketers to save time and money on lead-generation campaigns.
Chatbot Development
Marketers Using ChatGPT for Chatbot Development
Another great use of ChatGPT for marketing companies is personal AI chatbots. ChatGPT can assist in the development of chatbots that improve customer service and engagement. Chatbots powered by ChatGPT can handle complex queries and provide personalized recommendations and solutions based on the customer’s behavior and interests. This is a great integration benefit of ChatGPT that many API developers will go for it. Even OpenAI is providing free access to developers for this purpose.
Customer Service and Customer Retention
Marketers Using ChatGPT for Customer Service and Customer Retention
Customer service is a significant part of the marketing sector, and ChatGPT can be used to improve this by providing customers with quick and accurate answers to their questions. ChatGPT can also effectively help improve customer retention by analyzing customer data and behavior. By providing personalized recommendations and solutions based on the customer’s preferences and past purchases, ChatGPT can increase customer loyalty and satisfaction. It will also help with reducing customer frustration and improving customer loyalty.
Brand Reputation Management
Marketers Using ChatGPT for Brand Reputation Management
A lot depends on brand reputation amongst consumers. ChatGPT can help monitor the brand’s reputation online by analyzing customer feedback and reviews, as people would give feedback and write reviews mentioning what works and what doesn’t. By providing marketers with insights into how customers perceive the brand, ChatGPT can assist in developing strategies to improve the brand’s image and reputation. This will result in better service and improved profitability.
Influencer Marketing
Marketers Using ChatGPT for Influencer Marketing
The recent Budlight fiasco highlights the need for a correct strategy for influencer marketing. A lot of leg work, the right market, and target audience research become crucial. Budlight learned its lessons, but more brands do not need to make the same mistakes. Influencer marketing is a prominent segment now, and ChatGPT can identify relevant and high-performing influencers for a brand’s influencer marketing campaigns. By analyzing influencer data and metrics, ChatGPT can provide insights into which influencers can be most influential in promoting the brand’s products or services.
Social Media Management
Marketers Using ChatGPT for Social Media Management
The use of technology and modern tips and tricks can have a significant impact on profitability. Proper social media management is one such trick. ChatGPT can assist in managing social media accounts by generating engaging and informative content and responding to customer inquiries and comments. With ChatGPT’s help, marketers can ensure that their social media accounts are active and engaging, increasing customer engagement and loyalty. Social media can help marketers to reach a wider audience and to generate more engagement with their content.
Email Marketing
Marketers Using ChatGPT for Email Marketing
Last but not least, ChatGPT can also help create personalized and engaging email campaigns, which is extremely important as more and more businesses spend heavily on email marketing. It can analyze customer data and behavior and give you great insight into what sells and what doesn’t. By developing compelling email content that aligns with the customer’s interests, marketers can increase open rates, click-through rates, and conversions, and ChatGPT is happy to help.
Conclusion
ChatGPT can assist marketers in numerous tasks— from content creation and copywriting to customer retention and market research. Using ChatGPT, marketers can improve their marketing strategy effectiveness and create more personalized and engaging campaigns that resonate with their target audience and lead to profitability and customer satisfaction.
FAQs
How can ChatGPT be useful to Marketers?
Here are 11 ways ChatGPT can be useful to Marketers-
Content Creation
Personalize Content
Copywriting
Research
Generating Leads
Chatbot Development
Customer Service and Customer Retention
Brand Reputation Management
Influencer Marketing
Social Media Management
Email Marketing
How can ChatGPT help in Content Creation?
Marketers can use ChatGPT to generate high-quality content, such as blog posts, social media captions, email campaigns, and articles. It can be used for writing product descriptions tailored to the target audience’s preferences and interests. This can save marketers a lot of time and effort, plus it can be helpful to ensure that their content is engaging and informative.
How can ChatGPT be helpful in Generating Leads?
ChatGPT can generate leads by qualifying prospects and identifying those most likely interested in a product or service. This can effectively help marketers to save time and money on lead-generation campaigns.
How can ChatGPT help in Chatbot Development?
ChatGPT can assist in the development of chatbots that improve customer service and engagement. Chatbots powered by ChatGPT can handle complex queries and provide personalized recommendations and solutions based on the customer’s behavior and interests.
Luxury brands have long been associated with exclusivity, sophistication, and elegance. Their marketing strategies have always been a crucial component of their success. Luxury brands use a range of tactics to build brand awareness, create demand, and build a loyal customer base.
Let’s explore the world of luxury brand marketing and highlight the tactics used by some of the world’s most iconic brands.
One of the most important aspects of luxury brand marketing is exclusivity. Luxury brands are known for their exclusivity, and they use this to create demand and increase brand value. The idea is simple: if everyone can afford a product, it’s no longer a luxury item. By keeping their products exclusive and limiting access, luxury brands can create a sense of scarcity and demand.
One brand that has mastered the art of exclusivity is Hermès. The French luxury brand is famous for its handcrafted leather goods, including its iconic Birkin bag. Hermès has created a waiting list for the Birkin bag, which can sometimes take years to obtain. This creates a sense of demand and exclusivity, which drives up the brand’s perceived value.
Luxury brands don’t sell products; they sell experiences. They use emotion to create a connection with their customers and build brand loyalty. This means that luxury brands must understand their target market and create campaigns that speak to their emotions.
By tapping into customers’ emotions, luxury brands can create a sense of exclusivity, inspire loyalty, and increase brand recognition. Here are some examples of luxury brands that have successfully used emotional marketing:
Tiffany & Co.
Tiffany & Co., the American luxury jewelry brand, is known for its iconic blue box and its emotional connection with customers. The brand has used emotional marketing in its advertising campaigns, showcasing heartwarming moments such as a couple’s engagement or a mother and daughter sharing a special moment. These emotional ads not only promote the brand’s products but also create a strong emotional connection with customers, making them feel special and exclusive.
Tiffany & Co. – Believe in Love
BMW
BMW, the German luxury car brand, has used emotional marketing in its advertising campaigns, showcasing the thrill of driving and the sense of freedom that comes with owning a luxury car. The brand’s ads often feature sweeping vistas and winding roads, creating an emotional connection between the driver and the car. BMW’s emotional marketing not only promotes the brand’s products but also reinforces its commitment to quality and craftsmanship.
Chanel, the French luxury fashion brand, has used emotional marketing in its advertising campaigns, showcasing the timeless elegance and sophistication of its products. The brand’s ads often feature a strong, independent woman, who embodies the Chanel brand and its values. These emotional ads not only promote the brand’s products but also create a sense of exclusivity and sophistication, making customers feel like they are part of an elite group.
The Film of the CHANEL Coco Neige 2021/22 Collection Campaign
Louis Vuitton
Louis Vuitton, the French luxury fashion brand, has used emotional marketing in its advertising campaigns, showcasing the sense of adventure and discovery that comes with traveling. The brand’s ads often feature exotic locations and stylish travelers, creating an emotional connection between the customer and the brand. Louis Vuitton’s emotional marketing not only promotes the brand’s products but also reinforces its commitment to quality and luxury.
Louis Vuitton Spirit of Travel 2019 Campaign
Apple
Apple, the American luxury technology brand, has used emotional marketing in its advertising campaigns, showcasing the sense of innovation and creativity that comes with owning an Apple product. The brand’s ads often feature creative professionals, artists, and musicians, highlighting the emotional connection between the user and the product. Apple’s emotional marketing not only promotes the brand’s products but also reinforces its commitment to innovation and design.
The Greatest (Audio Descriptions) | Apple
Influencer Marketing
Influencer marketing has become an increasingly popular marketing tactic in recent years, and luxury brands are no exception. Luxury brands are using social media influencers to promote their products and reach a broader audience. Influencers are people with large social media followings who can influence their followers’ opinions and behavior.
Here are some examples of luxury brands that have successfully used influencer marketing:
Chanel x Kristina Bazan
Chanel, a French luxury fashion brand, collaborated with Swiss influencer Kristina Bazan to promote its new Rouge Coco Lip Blush product. Bazan, who has a large following on Instagram and YouTube, created content featuring the product and shared it with her followers. The collaboration allowed Chanel to reach a younger audience and create buzz around the new product.
Gucci x Harry Styles
Gucci, an Italian luxury fashion brand, collaborated with British musician Harry Styles for a photoshoot promoting the brand’s new genderless fragrance, Mémoire d’une Odeur. Styles, who has a large following on social media, shared the photos on Instagram, generating buzz around the fragrance. The collaboration helped Gucci reach a younger audience and reinforce the brand’s commitment to inclusivity and genderless fashion.
Harry Styles in Gucci Mémoire d’une Odeur – The Campaign Film
Omega x Cindy Crawford
Omega, a Swiss luxury watchmaker, has a long-standing partnership with American model Cindy Crawford, who has been the brand’s ambassador since 1995. Crawford has appeared in several Omega ad campaigns and has helped promote the brand on social media. The collaboration has helped Omega maintain its status as a luxury watch brand and reinforce its commitment to quality and craftsmanship.
Cindy Crawford opens OMEGA Her Time exhibition in Sydney
Dior x Bella Hadid
Dior, a French luxury fashion brand, has collaborated with American model Bella Hadid on several occasions, including a photoshoot promoting the brand’s Dior Makeup line. Hadid, who has a large following on Instagram, shared photos from the shoot with her followers, generating buzz around the brand. The collaboration allowed Dior to reach a younger audience and reinforce its status as a luxury fashion brand.
Rouge Dior, the new lipstick – The date – Bella Hadid Makyaj video
Rolex x Roger Federer
Rolex, a Swiss luxury watchmaker, has a long-standing partnership with Swiss tennis player Roger Federer, who has been a brand ambassador since 2001. Federer has appeared in several Rolex ad campaigns and has helped promote the brand on social media. The collaboration has helped Rolex maintain its status as a luxury watch brand and reinforce its commitment to precision and excellence.
Federer Rolex Ad Black and White
Influencer marketing is an effective way for luxury brands to reach new audiences and create buzz on social media. By collaborating with influencers, luxury brands can leverage their large followings and reinforce their commitment to quality and craftsmanship. Successful collaborations not only promote the brand’s products but also reinforce the brand’s status as a luxury brand.
Storytelling
Storytelling is a powerful marketing tactic that luxury brands have been using for years. Luxury brands use storytelling to create a narrative around their products, build brand awareness, and create an emotional connection with their customers. The idea is to create a story that customers can relate to and that adds value to the product.
One brand that has successfully used storytelling in its marketing is Rolls-Royce. The British luxury car manufacturer has been using storytelling to build its brand for decades. Rolls-Royce’s ads often feature images of travelers embarking on epic journeys in the comfort of their Rolls-Royce cars. These ads create a narrative around the brand, suggesting that Rolls-Royce cars are not just vehicles; they’re a means to explore the world.
Introducing Rolls-Royce Dawn. Experience open-top driving like never before.
Customer Experience
Luxury brands understand the importance of customer experience. They know that their customers expect a high level of service, and they go above and beyond to deliver it. They understand that the experience is just as important as the product itself.
One brand that excels in customer experience is The Ritz-Carlton. The luxury hotel chain is known for its exceptional customer service and attention to detail. The Ritz-Carlton’s “Gold Standards” program outlines the brand’s commitment to providing a personalized and memorable experience for each guest.
Digital Marketing and E-commerce
Luxury brands have traditionally relied on in-store experiences and personal relationships with customers to drive sales. However, with the rise of e-commerce and digital marketing, luxury brands are now embracing digital channels to reach new customers and drive sales. This strategy increases accessibility and convenience for customers to buy the products they want.
For example, Burberry, a British luxury fashion brand, has launched a successful e-commerce platform that allows customers to shop online for their products. Burberry has also embraced social media and influencer marketing to reach new audiences and engage with its customers.
Partnership Marketing
It is a marketing strategy where two or more brands collaborate to create a product or service that leverages each other’s strengths and appeals to a broader audience. The partnership allows brands to tap into each other’s customer base and create unique offerings that cannot be found anywhere else. Luxury brands have been using partnership marketing as a way to increase brand awareness, reach new audiences, and create memorable experiences. Here are some examples of luxury brands that have successfully used partnership marketing:
Louis Vuitton x Supreme
Louis Vuitton, a French luxury fashion brand, collaborated with Supreme, a New York-based streetwear brand, to create a limited-edition collection of clothing and accessories. This partnership created a unique blend of high fashion and streetwear, which appealed to both brands’ audiences. The collaboration was heavily promoted on social media and created a buzz around the two brands.
The collaboration of Louis Vuitton and Supreme
Aston Martin x TAG Heuer
Aston Martin, a British luxury car brand, partnered with TAG Heuer, a Swiss luxury watchmaker, to create a special edition watch that celebrates the launch of the new Aston Martin Vantage. The watch features design elements inspired by the car, such as the carbon fiber dial and Aston Martin’s winged emblem. The partnership allowed both brands to leverage each other’s prestige and create a product that appeals to their shared audience.
The collaboration of Aston Martin and Tag Heuer
Bentley x Breitling
Bentley, a British luxury car brand, collaborated with Breitling, a Swiss luxury watchmaker, to create a special edition watch inspired by the Bentley Continental GT. The watch features design elements that pay homage to the car, such as the knurled bezel and the Bentley emblem on the dial. The partnership allows both brands to showcase their commitment to craftsmanship and luxury.
Breitling for Bentley Premier Mulliner Edition Watch | Bentley
Emirates x Bulgari
Emirates, a luxury airline based in Dubai, partnered with Bulgari, an Italian luxury brand, to create an exclusive amenity kit for their first-class passengers. The kit includes a range of Bulgari products, such as perfume, hand lotion, and eye mask, which allows passengers to indulge in a luxurious in-flight experience. The partnership highlights both brands’ commitment to luxury and creates a memorable experience for passengers.
Emirates: BVLGARI Amenity Kits (Business Class)
Montblanc x BMW
Montblanc, a German luxury brand known for its writing instruments, partnered with BMW, a luxury car brand, to create a limited edition set of writing instruments inspired by the BMW 7 series. The set includes a fountain pen, a rollerball pen, and a ballpoint pen, each of which is adorned with design elements inspired by the car. The partnership allowed both brands to showcase their commitment to design and craftsmanship and create a unique product that appeals to their shared audience.
Montblanc Pen For BMW Individual 7 Series
Luxury brands have mastered the art of creating a sense of exclusivity, building emotional connections with customers, providing exceptional customer service, and maintaining a consistent brand image. Marketers can learn from these strategies by implementing them into their marketing plans to create a strong brand identity, build customer loyalty, and drive business growth. Are you ready to take your marketing game to the next level? Start implementing these tips today and watch your brand soar to new heights of success!
FAQs
What are a few examples of influencer marketing done by some of luxury brands?
Here are some examples of luxury brands that have successfully used influencer marketing:
Chanel x Kristina Bazan
Gucci x Harry Styles
Omega x Cindy Crawford
Dior x Bella Hadid
Rolex x Roger Federer
What are a few examples of partnership marketing done by some of the luxury brands?
Here are some examples of luxury brands that have successfully used partnership marketing:
They are cool, young, smart, working-from-home individuals who have money, fame, success, and notoriety. They are the new-age professionals called social media influencers. These social media influencers are students who are either still studying or have left their education or have studied to become an influencer. They are a different breed from the traditional influencers who were either social activists, intellectuals, politicians, or change-makers in society.
As per Meta (formerly Facebook), they have seen a year-on-year rise of 35% in the number of social media influencers in India as of September 2021. One of the fastest growing industries globally, the influencer marketing industry in India has valued at INR 900 crores and is expected to grow at a CAGR of 25% to reach INR 2200 crores by 2025.
Reasons for the Rising Popularity of Social Media Marketing
1. Targeted Audience
This is one of the biggest advantages for brands as they can choose influencers based on real-time data. Brands can access the age group that the influencer is targeting, their interests, gender, etc. Celebrity marketing on television targets a wide section of the audience without understanding its relevancy.
2. Cost Effectiveness
This is the bottom line for any business. As an industry, influencer marketing is in a nascent stage and the competition between influencers affects the cost of collaborations. Brands are able to collaborate with many influencers with the same budget and reach a more relevant audience. The value for money in this case is higher.
3. Ease of Platform
Instagram, YouTube, or Tiktok as platforms are free of cost. Brands can advertise their products either with a single photo or a video that reaches audiences without it weighing heavily on the company’s pockets.
4. Trust
Influencers have already built a loyal audience that trusts them. Brands depend on this trust that is automatically transferred to them on the influencer’s advice. Influencers are protective of their audience and are wary of promoting products that are questionably in quality.
The Growth of Influencer Marketing in India
Social Media Influencers Demographics
It was in the year 2014 when the concept of Branded Content came into existence around the world. In India, 2016 was the year when social media influencers gained prominence as brands began considering influencer marketing as a strategy. Niche marketing and content-driven marketing were formulated and utilized. Brand success suddenly depended heavily on a combination of the authenticity of the product and the credibility of the influencer.
The sharp growth of influencer marketing and brand collaborations on apps like Instagram and YouTube was seen in the year 2019. Since then, it has steadily grown as brands have shown a growing preference for collaborating with influencers on the internet rather than proceeding with celebrities for television advertisements.
By 2021, Influencer marketing on social media has taken over 73% of the market share leaving only 27% for celebrities. Additionally, the behemoth has grown from traditional sectors like food and beverage, personal care, fashion, and technology to now include sectors like BFSI and fintech too.
How do Influencers Help
Influencers affect all the levels of the funnel metrics including lead generation and conversion. They drive user engagement by using social media tools like sharing links to product pages, using influencer-specific discount codes, and posting reviews of true use. Brands can trace the influencer by their efforts to generate leads or encourage sales.
Even within the BFSI sector brands are collaborating with influencers as people are increasingly relying on them to understand personal finance, discover new BFSI services as well as make important financial decisions.
Over the years, brands have come to heavily rely on value addition through influencer marketing which is much higher than other marketing gimmicks. As per the India Influencer Marketing Report of 2021, 80% of the brands that have collaborated with influencers are of the opinion that the return on investment from influencer marketing is better than other marketing channels.
Governing the Influencer Marketing Sector
Rules for social media influencers, up to $62,000 fine for failing to disclose financial ties
With the sector growing leaps and bounds, there are genuine concerns regarding dubious market practices in absence of any governing body for Social Media Influencer Based Marketing. In July 2021, the Advertising Standards Council of India (ASCI) had begun monitoring digital and social media platforms in an effort to reign in violations of its Influencer Advertising Guidelines.
By May 2022, ASCI along with the Department of Consumer Affairs held a virtual meeting with the stakeholders including e-commerce entities, to discuss the magnitude of fake reviews on their platforms.
As early as last week, the central government has decided to introduce a new set of guidelines for social media influencers in an effort to regulate the sector by introducing transparency of collaborations. The new guidelines are likely to be rolled out within the next two weeks. Among other regulations, the government will make it mandatory for social media influencers and creators to disclose their collaborations for paid reviews and paid promotions. The guidelines would also penalize the creators and influencers up to INR 50 lakhs for non-disclosure of financial ties with brands.
What are the Influencers saying about Guidelines?
The central government’s move to introduce these guidelines has met with unanimous consent from several content creators and influencers. They feel that these guidelines will encourage transparency in sponsorships as well as induce responsibility in large platform product promotions and curb scams. This move will also bring more clarity to users while recognizing social media influencers as legitimate professionals.
Conclusion
Influencer marketing in India will grow and continue to evolve as more and more brands are utilizing this platform for brand awareness and customer acquisition. With India’s vibrant startup ecosystem and bigger established brands looking to expand their customer base, influencer marketing is set up for a bright future as it continues to innovate and upgrade itself.
FAQs
Can we regulate influencer marketing?
The government is set to introduce rules to regulate social media influencers, including penalizing 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.
What makes a good social media influencer?
The best influencers engage with their audience, take time to answer questions, stay active on their respective platforms and publish content consistently.
What kind of content do influencers post?
Nowadays, video is perhaps the most popular kind of content they post.
What content is not allowed on Instagram?
Instagram is not a place to support or praise terrorism, organized crime, or hate groups. Offering sexual services, buying or selling firearms, alcohol, and tobacco products between private individuals, and buying or selling non-medical or pharmaceutical drugs are also not allowed.
This article is contributed by Karam Suri, Founder of Dusk Attire.
The digital age is a widely used term across the globe for quite a long time now. Be it, toddlers or elders, everyone is hooked to social media and digital platforms for their personal reasons. Be it business or entertainment, digital platforms have something for everyone. From starting a home-based baking business to launching an online fashion brand to just watching your favorite shows, these platforms cater to everyone’s needs.
Every time someone steps into the business world, they have a bigger picture in mind and strive day in and day out to make their dreams a reality. Something as trivial as essentials to luxury items, everything is attached to a brand name. Such is the influence of these brand names on our minds that it becomes unsettling if we don’t get the items from our desired brands.
There are thousands of fashion brands in India, some selling similar products whereas others have created a niche for themselves. The competition is so high that some brands disappear into thin air, and some stand the test of time and go on for generations. Everyone starts from small. A small establishment in a busy market, a small counter in a flea market, a small home-run business, or a small brand launch operating only online. Each individual(s) starts from somewhere and how well are they able to market their brand is what the success of the brand depends on.
Fashion startups start small, catering to their known circle in the initial stage. Gradually, word of mouth helps and they either launch their brand online or locally and nationally at various fleas and exhibitions. Moving on, if the finances allow, they might be opening a stand-alone store or putting up their outfits at multi-designer stores. In order to do all these things, marketing plays a huge role.
Building a brand requires marketing as much as passion and dedication to rise above just being a startup. Social media is the place to be if you want things to go viral. It will help you create the right kind of buzz to tap into the target audience. There are numerous ways to leverage the power of social media to your benefit. Marketing gimmicks depend on how creatively enabled a person is. There is truly no end to this. The basic idea like making a brand page and posting about the brand and outfits on the feed and stories worked for everyone initially. It still works as your customers have to be updated with what the new launches are, what the brand is doing if there is anything out of the box happening with the brand, or just a regular update of what’s taking place on a day to day basis. Another thing that helps fashion startups turn themselves into a brand is investing in influencer marketing.
Influencer marketing is the way forward if you want to rise from the ground level, reach a wider mass and turn yourself into a brand. In Layman’s terms, you get a known or popular face on board to market your brand’s product(s), they reach out to their followers by putting it up on their stories, or social media feed or endorse the brand as a whole and influence their followers. This helps in tapping onto a larger mass and increasing the clientele. It automatically drives up the sales and eventually, the brand starts getting famous. A short-term influencer marketing plan has the possibility of running into a long-term commitment if the brand sees desired results. The shift change of an influencer marketer to being a brand ambassador can be beneficial to both the brand and influencer. The possibilities are endless, it is all about the action plan and how well you can execute it.
Speaking about fashion startups rising to being brands, Karam Suri, Co-Founder of Dusk Attire, says, “Today’s generation is extremely conscious about what they are buying. Trendy and versatile outfits are usually the popular choice as they can be worn at various occasions. Elegance is the word everyone is focused on. Be it party wear or loungewear, people want to pick the best of everything. When the demand is clear, brands should step up and cater to them in the best possible way. It is true that influencer marketing is essential and it is definitely the way forward, as the customers connect to the known faces faster than a random marketing advertisement.”
Karam Suri further says, “At Dusk Attire we aim to fulfill everyone’s wishes of owning trendy loungewear. This pandemic gave us a huge lesson in comfortable clothing too. We aim to cater to the same demand and stay true to the name, all our collections are apt for the street to sheets whilst keeping excellent craftsmanship and comfort as a priority.
No business is run on a 100% success module. The risk is always high, but the determination to keep pushing yourself towards the goal of establishing your startup as a brand is what makes the difference. Numerous marketing tools are at your disposal, use them wisely, and see how things start falling in place. As much as age-old techniques of word of mouth marketing and advertisements help, in today’s time investing in proper marketing options like celebrity gifting, influencer marketing, and social media marketing, to name a few will help equally. And once your audience connects with the brand, it becomes a responsibility to maintain that bond and make sure you are the first choice for your customers.
Draw inspiration from the brands whose names are synonyms to the products. Yes, you read that write. Such is the impact of a strong brand like Cadbury that today nine out of ten people who go to local shops to buy chocolates, directly say Cadbury when in reality they might want some other chocolate. This is when you know you have established yourself as a brand and etched an image in people’s minds when the name of the brand becomes the product’s name.
Tripti Garg
