NEW DELHI: A majority of urban Indian consumers on social media feel that the new guidelines on influencer marketing, which say posts must clearly be labelled as ads, will have a positive impact on their interactions with an influencer online owing to more transparency. These are the findings of a new survey conducted by YouGov, an online marketing research firm.
The survey said while 52% social media users feel that disclosures will help them increase their interactions with an influencer’s post, some felt the engagement may decline. While 29% of respondents think it will enhance the level of trust between customers, influencers and brands, 21% feel it will lead to careful brand endorsements by influencers.
However, one in five said new rules will have a detrimental impact on their engagement with posts, as they would appear like any other advertisements.
Last month, the Advertising Standards Council of India (ASCI) issued draft rules for advertising and promotions by influencers on digital media platforms to protect consumer interest. The need arose as influencer marketing is burgeoning and currently estimated at $75 million-$150 million, according to digital marketing agency AdLift.
As per the new rules, influencers will be required to identify and say upfront that a said communication is an advertisement. The disclosure that what a consumer is watching is an ad and not content has to be prominently displayed and should be suitable for all digital devices across phones, tablets and laptops.
Apart from specifying the nature of labelling for various digital media channels such as Twitter, Instagram and YouTube, the code gives guidance on the type of disclosure on the varied promotions such as a video, picture promotion or an audio. In case of audio, the disclosure label must be stated at the beginning and the end.
The final guidelines, ASCI, announced on Friday, will be introduced by April 15 as the date for feedback from stakeholder has been extended to March 21.
In the YouGov survey, one in six people (16%) feel there will be no change in their social media interactions and one in ten (11%) are unsure about their behavior.
When asked specifically about how this development is likely to impact their decision to follow an influencer or purchase a product based on their recommendation, more than half of urban Indians gave a positive response. Very few admitted to a negative impact on their judgement.
The data for survey was collected online among more than 1,000 respondents in India during 2-5 March, using YouGov’s panel of over 6 million people worldwide. Data is representative of the urban adult population in the country.
Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.