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5 Mistakes That Can Cost Millions to Influencers and Brands

by | Oct 23, 2021 | 0 comments

According to GroupM INCA’s India Influencer Marketing Report, the Indian influencer marketing industry is projected to be valued at Rs. 900 crore by the end of 2021. The market is expected to grow at a compounded annual growth rate (CAGR) of 25% till 2025 to reach a size of Rs. 2,200 crores.

Influencers are either paid in the form of money, free goods, or experiences for endorsing products or services of brands.

While it is important for brands to create memorable and successful campaigns, these are the 5 mistakes that both brands and influencers should avoid.

5 Mistakes Influencers and Brands Should Avoid

These mistakes could cost millions of rupees, brand reputation, and audience trust:

Inadequate Disclosure: According to ASCI guidelines, influencers must disclose promotional posts with hashtags: #ad, #collab, #promo, #sponsored, and #partnership; to enable viewers to distinguish between promotional and organic content. Also, filters should not be applied to posts if they are exaggerating the claims of brands like “makes skin fairer” or “teeth whiter” etc. So, it’s advisable for influencers to do their due diligence because failing to do so could result in serious consequences.

Inauthenticity: When customers trust and feel connected to the influencers, only then will they listen to their advice. Product promotions when done excessively could leave the audience doubting influencers’ authenticity. So, to create a good impression on brands and the audience, influencers should focus on growing organically. To avoid reputational damages, they should determine if the particular brand is a good fit and ensure that they share the same values.

Overemphasis: Controlling an influencer’s content, asking for excessive product mentions, and instructing influencers to follow scripts will only result in diminishing viewer enjoyment. When a product is mentioned too many times, the viewers could be left wondering – if the product is substandard. Hence, influencers should be given creative freedom to produce content their viewers will enjoy.

Brand Fatigue: When brands instruct influencers in the same community to post similar endorsements repeatedly, they end up reducing the effectiveness of the campaign. Organizations should focus on scheduling, and they should restrain from choosing influencers from the same community. This not only reduces brand fatigue but also allows influencers to create content for a variety of endorsements.

Brands and influencers

Overindulgence: Influencers who make endorsements of free merchandise or luxury holidays – they received, could be perceived as less trustworthy. Hence, brands should also focus on giveaways to other communities through competitions or other activities. Also, the expensive influencer incentives can result in increasing the cost price of these brands’ products and thus reduce the number of returning customers.

Brands and influencers should carefully consider what they’re getting into before saying yes to the first thing on their table.


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