Brand hopping may no longer be an option for social media influencers

For influencers banking on a barrage of partnerships to enhance income during the festival period, there is a sobering reality. Companies are increasingly demanding exclusivity and avoiding creators who promote multiple brands.

Classic Legends, the maker of Jawa motorcycles, is seeking long-term contracts with creators like Harish Solanki, who has 233,000 followers on his Instagram handle @kalakaar_moto_trails. Although he hasn’t signed a contract yet, Solanki told Mint he is considering the option as he himself rides a Jawa.

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Short-term contracts are better for creating hype around new launches or promotional offers but long-term partnerships with influencers build more consumer trust, said Shardul Verma, the marketing lead at Jawa.

The selective approach of brands narrows options for influencers during the festival season, a period they rely on to boost earnings. Companies, too, set aside higher budgets for digital marketing to benefit from creators’ appeal. The approach will have a lasting impact on India's influencer marketing that, according to Ficci-EY estimate, is expected to swell to ₹34 billion by 2026 from ₹19 billion in 2023.

Traditional ad mentality

"Brands have transitioned to influencer marketing but haven't switched from the traditional ad mentality of having filmstars and other celebrities signed for ads on long-term contract basis, for which they would get royalties for that duration, so it would make sense to them," said Raghav Sharma, who has a combined YouTube and Instagram following of 282,800 on his handle @raghav_sharmaaaaa.

“As influencers, they don't give us any royalty, they pay us for one video and may expect us to keep four grids free of any promotional content, which essentially means no other brand deal in about a month," he said. Sharma, who earns 80% from brand endorsements, is not comfortable with just collaborating with one brand and reducing his avenues of income.

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Companies feel they need a more rigorous approach to brand partnerships in a cluttered online landscape. They meticulously examine a creator's past collaborations and want them to promote their products to stand out.

"Forging exclusive relationships with relevant influencers is essential for brands to stand out in today’s competitive landscape," said Piyush Jalan, co-founder of the audio electronic brand G0VO. "We have seen these collaborations resonate with our audience and helped us strengthen our presence and engagement online."

Gains of consistent promotion

And the shift towards exclusivity goes beyond just avoiding competitor promotion, according to Avi Kumar, chief marketing officer of gifting company Ferns N Petals (FNP). If an influencer consistently promotes the same product, consumers believe it is part of the creator’s lifestyle and are more likely to buy.

"It's about fostering deeper, more authentic relationships. When influencers work exclusively with a brand, their endorsements feel genuine, which builds trust with their audience," Kumar said. “We prioritize long-term partnerships that allow influencers to immerse themselves in our brand, creating more thoughtful, cohesive content."

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Yet, long-term contracts do not hurt all influencers alike.

"We have seen long-term contracts with smaller influencers are more one-sided and in favour of a brand. The brand enjoys greater power in such contracts and is able to impose greater demands on the influencers," said Vinay Joy, partner at law firm Khaitan & Co. “In contrast, established or well-known influencers have more bargaining power, so their contracts are heavily negotiated and on a more even basis."

Joy, who negotiates one long-term contract between a brand and an influencer every two months, says the duration can go from three months to three years, but generally ranges from 6 months to a year for most of his clients.

Influencers budgeted

He said companies will be selective as marketing budgets are increasingly being dedicated to influencers, rising to be on a par with celebrity endorsements, he said. "For this festive season, any influencers who pick up a brand are likely to be restricted from working with a competing brand in the same category."

Some influencers argue more brand collaborations should be a positive sign for companies.

"Working with more brands should be a green light for them that other brands are putting their faith in a creator," says Naman Kapoor, who posts comedy content on his Instagram channel, having 125,000 followers. For him, 95% of average monthly income, ranging ₹1-2 lakh, comes from brand collaborations. But he also advised creators "shouldn't be too spammy" and take a prudent call on how often they want to integrate brands with their content.

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Making that distinction may appear obvious but is not an easy choice for every creator.

"A barrage of deal display in a short duration of time takes away the novelty of association. And not doing enough in your 'prime' is not a prudent call," said Harikrishnan Pillai, CEO and Co-Founder of digital marketing agency TheSmallBigIdea. “A creator should choose brands and frequency smartly to maximize output and maintain longevity. However, it's easier said than done."