Influencer marketing, minus the influenza

Rules are being tightened for influencer marketing, as brands increasingly turn to social media to pump up sales. Influencers are being told to disclose their material interest in the brands they endorse. The bar may possibly be raised in select categories like wellness and finance, where endorsers might need to present their credentials to their audience. This has become necessary as consumer preference for shopping online increases. Big brands see benefits of personalisation using micro-influencers with a few thousand subscribers on social media platforms, in addition to celebrities who can shape the buying patterns of millions of fans. Smaller brands keep pushing the envelope in influencer marketing by building relationships with a diverse group of influencers who represent accessibility over aspiration. The challenge for big brands is to maintain authenticity in influencer marketing while the minnows risk being drowned in noise.

Regulation of influencers improves communication all round. Identifying promoted messaging improves consumer choice and reinforces trust in brands. Establishing why a particular influencer is the medium takes credibility a notch higher. Brands do this on their own by seeking a match between the messenger and the message. Another layer of scrutiny through regulation merely raises the fence for, say, a dietary supplement.

Influencer marketing is a promising channel as digital shopping becomes more experiential and business models evolve to increase the supply of influencers. Augmented reality (AR) is redefining the user experience and artificial intelligence (AI) is being used to influence consumer behaviour. Technology, by itself, does not protect consumer interests, although most social media platforms employ algorithms that are based on reputation as well as subscribers. Brands will, on their part, continue to seek the next best thing, and influencers will realise there is more to marketing than a winning smile. Now is as good a time as any to put the guard rails in place.