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Influencer marketing: the potential and potential problems for brands

By Shiva Bhavani

Influencer marketing, once considered a trend, is quickly becoming a vital arsenal in a brand’s marketing war. Recent Indian spending estimates are a walking testament to how influencer marketing is evolving into an increasingly mainstream strategy for modern brands. The industry, which grew by 40% in 2021, maintains its growth in 2022 with an increase in revenue from Rs 900 crore to Rs 1,200-1,300 crore.

Understanding Influencer Marketing

Influencer marketing employs top and niche content creators and, when done correctly, is an effective way to drive quality traffic, improve brand awareness and convey messages to a brand’s target audience. This new era of “mimetic” marketing helps customers simplify their decision-making and inform what they think they want through their models. This democratic media consumption is taking up more and more space in the field; indeed, in the name of “role models”, celebrities only accounted for 27% of influencer marketing spend. The rest of the 73% included nano, micro, and mid-level influencers due to the high relatability quotient and trust they share with their audience.

It’s becoming a huge hit in the B2C space, but since millennials are one of the biggest segments of online buyers and trust influencers 12% more than celebrities, it’s also tough for businesses. B2B to ignore the role of influencer marketing and therefore many have also started to apply it.

Now a multi-billion dollar powerhouse, influencer marketing is a global industry issue for any business hoping for sustainable growth. However, in the name of influencer marketing, many indulge in misleading advertisements, resulting in a loss for both brands as well as influencer marketing stakes. To combat these issues, the Department of Consumer Affairs should introduce its guidelines on social media influencers, requiring them to declare the exact nature of their association with the products they endorse. And if they are unable to prove their association, the new provisions will include a 10 lakh penalty for first-time offenders, which could extend to 20-50 lakh for repeat offenders. The market which is poised to grow at a compound annual growth rate (CAGR) of 25% through 2025 to reach a size of `2,200 crores, this new framework will not only protect brand credibility and the interest of content creator, but also help to continue walking in the direction of achieving this growth rate.

Potential of influencer marketing

As this pay-for-performance model enables millions of consumers to make better purchasing decisions every day, companies can leverage this channel to create their own advertising ecosystems and create many point-of-sale revenue generators. multimedia contact.

This model proves to be the most effective due to the high level of trust that social influencers have with their followers. So, when they recommend products or services, it not only leads to social validation, but also to their decision-making power.

Another potential that marketers expect from influencer marketing is the generation of sales and conversions. According to research, every dollar spent on messaging the customer through influencers translates to around $18 in revenue for businesses and this figure can be higher and vary for many other brands. That’s the impact of influencers and that’s why it’s exceptionally viable for businesses to create, manage, and create posts through influencers to generate a massive increase in sales.

Advertising through influencer marketing is relatively reasonable compared to other forms of advertising. Apart from opening up new opportunities for brands to compete with a more efficient and optimized strategy, its benefits outweigh the cost spent, which helps brands earn huge returns on investment, increase sales and to save more money.

Promotions and strong sales campaigns have simply become an outdated model for brands. Collaborating with influencers who can perfectly combine brand campaigns in their style and expression is becoming the new normal. They offer a viable and discreet way to communicate and improve the visibility of a brand.

Potential Influencer Marketing Problems

As influencer platforms are so easily accessible that they are nothing more than a competitive arena where brands have to compete dollar after dollar to get the perfect influencer for their campaign. The result is competition between brands, which ultimately results in raising the price of campaigns.

The selection of influencers plays a very important role in influencer marketing because the performance of your campaigns depends on it. But the high number of fake influencers on social media platforms not only challenges brand credibility but also leads users.

One of the top concerns for about 65% of marketers is measuring performance and ROI, and influencer campaigns take a lot of time. Therefore, the only optimal way for brands to measure ROI depends on the goals they have set for a particular influencer marketing campaign. For example, if the brand is looking to improve its awareness, it should track performance metrics such as impressions and page views, if it comes to lead generation, the brand may need to track the number of new subscribers to emails.

Instead of followers, brands should focus on the quality of engagement influencers get from their audience. This not only ensures that you avoid working with fraudulent influencers who artificially inflate their numbers, but also ensures that the campaign they run reaches the right audience.

In many cases, sponsored content also fails to generate desired engagement rates because when influencers pitch products to them, audiences tend to ignore anything the influencer says about the brand with which he joined. This is part of the reason why brands are willing to invest their money with micro or nano influencers, because they would much rather see an honest review of a product than a sponsored post.


Influencer marketing faces several problems these days, but with the right research and use of influencer marketing tools, it is possible to overcome the challenges of influencer marketing. Being diligent with research, knowing what to expect in terms of pricing, and hiring a professional influencer marketing agency is essential in today’s climate. After all, brands constantly face challenges, but how they respond to and approach those challenges determines whether they succeed.

The author is CEO and Founder of Wing Communications

Also read: Why brands should use memes for customer engagement, not product sales

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