LEGAL ETHICS

Should influencers be promoted to advertise products?

What is an influencer?
The basic definition according to me is someone with a large following and
impressionable thought process. They have a way of influencing decisions, aspire
people to own and do different things, etc. Anyone can be an influencer, though with
the rise of the internet some people have been able to reach a wider range of people
across the globe. It can often be an idealized version of life or quick solutions as it is
highly based on short form content.
What does an influencer marketing deal look like?
Such a partnership often combines these two models:
1. A brand deal is when an influencer is paid a fixed amount (also known as flat
rate). These charges vary across the globe and tend to be higher when the
influencer has a massive following or lives in a high income area. Celebrities
can charge six figures or more per post.
2. An influencer posts about a product or service, with a link to a purchase
gateway. Every time a viewer buys the product by clicking through the link or
using a promo code, the influencer earns an affiliate commission. This is very
similar to affiliate marketing. However with influencers the products may only
be advertised once.
What are the different types of influencers?
With the rise of influencer culture the categorization is important to understand. You
will often see influencers with bigger following promoting a more luxurious lifestyle
whereas nano or micro influencers work more on relatable content. Influencers come
in five different sizes—nano, micro, medium, macro, and mega—depending on how
many followers they have:
 1. Nano influencers have fewer than 10,000 followers.
2. Micro influencers have from 10,000 to 50,000.
3. Medium influencers have from 50,000 to 100,000.
4. Macro influencers have more than 500,000.
5. Mega influencers: they have over one million followers.
As per popular belief that brands want to work only with macro influencers, but that’s
not always the smartest business decision. Micro influencers might produce more
relatable content than their macro counterparts, who use professional photographers,
stylists, makeup artists, and all kinds of consultants to put a post together. While
macro influencers may advertise a lifestyle that seems unattainable to many people,
micro influencers, on the other hand, can represent accessibility to their followers.
There are obvious benefits to working with macro influencers: with their mass
followings, they can help brands reach hundreds of thousands or even millions of
people.
The use of influencers in advertising has become a prevalent marketing strategy in
recent years, and it comes with both advantages and challenges. As people are
becoming more and more aware of what goes on behind the camera it has given rise
to interesting circumstances. I feel some of the advantages can be disadvantages
and vice versa.
Advantages:
There are many advantages of influencer marketing, some of them as seen more
commonly in media are-
1. Authenticity and Relatability: Influencers often have a dedicated following who find
their content relatable and authentic. This authenticity can enhance the
trustworthiness of product endorsements.
2. Targeted Audiences: Influencers often specialize in specific niches or industries,
allowing brands to reach targeted audiences effectively. This targeted approach can
be more efficient than traditional advertising methods.
3. Social Media Reach: Influencers typically have a significant presence on social
media platforms, where many consumers spend a substantial amount of time.
Leveraging influencers can help brands tap into these digital spaces.
4. Creative Content: Influencers are skilled content creators, and their ability to
produce engaging and creative content can make product promotions more
entertaining and shareable.
5. Influencer Marketing ROI: In many cases, influencer marketing can provide a
positive return on investment (ROI), especially when compared to traditional
advertising methods. 1 in 4 marketers that currently leverage influencer marketing
report that it offers the second highest ROI of any marketing trend, so your
investments in influencer marketing won’t go to waste.

Disadvantages:
I feel that there are more challenges/ disadvantages in influencer marketing in the
long run as people may consider the brand is fully reliant on paid promotions, gift
packages etc. Such challenges mostly rise because of the following-
1. Authenticity Concerns: As influencer marketing has grown, there are concerns
about the authenticity of product endorsements. Some influencers may promote
products solely for financial gain, leading to a loss of trust among their followers.
2. Disclosure and Transparency: Regulations around influencer marketing vary, and
there are concerns about influencers not clearly disclosing their relationships with
brands. Transparency is crucial to maintaining consumer trust.
3. Saturation and Overexposure: As influencer marketing becomes more widespread,
audiences may become oversaturated with sponsored content, leading to diminished
impact and engagement.
4. Variable Effectiveness: The effectiveness of influencer marketing can vary
depending on the influencer, the product, and the target audience. Not all influencer
partnerships lead to successful campaigns.
5. Changing Algorithms: Social media platforms often update their algorithms,
affecting the visibility of content. This can impact the reach and effectiveness of
influencer marketing.
While influencer marketing can be a powerful tool for promoting products, it is
essential for brands to carefully choose influencers based on their authenticity,
relevance to the target audience, and alignment with brand values. Additionally,
influencers must adhere to ethical standards, including transparently disclosing their
relationships with brands. When executed thoughtfully, influencer marketing can be a
valuable component of a broader advertising strategy.

Bibliography-
1. https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-
influencer-marketing
2. https://blog.hubspot.com/marketing/benefits-of-influencer-marketing