'Many B2C brands have shifted their focus to influencer marketing'

The authenticity of influencer marketing is in that it is driven by the users themselves, not dictated by brands: Ramya Ramachandran, founder, Whoppl.

According to a recent report by Dentsu India and Boomlet Group, 70 per cent Indians believe that influencer marketing has an impact on them, with 21 per cent saying that they are "extremely likely" to buy a product or service promoted by an influencer. Ramya Ramachandran, founder and CEO of Mumbai-based content to commerce company, Whoppl, tells Anuradha Mishra about the word-of-mouth effect content creators have on consumers and how brands measure their impact. Edited excerpts.

How are influencers and content creators reshaping the advertisement industry?

Content creators bring a unique perspective to product promotion, presenting it from a relatable consumer standpoint. In traditional advertising, brands majorly highlight the benefits and features of the products. However, content creators personalise their recommendations based on their own experiences. By sharing their endorsement and urging their audience to try the product, they establish a sense of authenticity.

In what ways do influencers and content creators offer unique advantages over traditional advertising methods?

The authenticity of influencer marketing is in that it is driven by the users themselves, not dictated by brands. While content creators may have brand guidelines, their opinions about a product or service are entirely their own. They personalise the content by using regional languages, enhancing relatability. Moreover, content creators add a narrative element to their promotion, making it both educational and entertaining, distinguishing it from traditional advertising methods. 

Do you think traditional brands, too, are turning into influencer marketing? 

In today's digital era, the mere presence of traditional brands on social media falls short of the mark. These brands have astutely recognised the indispensability of influencer marketing. Influencer marketing has attained omnipresence in the advertising industry, gaining prominence across diverse brand categories, encompassing traditional, technology-driven, and future-oriented brands alike. Unlike generic YouTube advertisements, when influencers candidly share their personal experiences and opinions about a product, it resonates with the audience. The authenticity and tonal nuances encapsulated within an influencer's content impart a distinctive impact, akin to a widespread word-of-mouth endorsement. 

How do influencers and content creators impact a brand's overall marketing and advertising strategy? Can you give examples of successful campaigns involving influencers?

One notable example is Daniel Wellington, a brand that successfully collaborated with influencers (IN INDIA?) to promote its watches, resulting in a widespread uptake among influencers themselves. Similarly, (Bengaluru-based) BlissClub leveraged influencers to emphasise the comfort and versatility of its activewear, showcasing its usage beyond the realm of gyms and sports into everyday lounging.

The presence of influencers from different backgrounds, interests, shapes, and sizes increases the relatability factor for consumers. Many B2C brands have shifted their focus from traditional brand ambassadors to influencer marketing as their primary strategy. This transition is driven by the recognition that influencers provide a better fit for day-to-day interactions, amplifying the brand's message and garnering social support in the process.

What metrics and strategies do you use to measure the effectiveness of influencer marketing campaigns?

Influencer campaigns are driven by specific objectives, such as brand awareness, consideration, purchase, or loyalty. For brand awareness, the focus is typically on reach, while consideration requires engaging content that informs and intrigues the audience. Purchase-oriented campaigns employ clear call-to-action elements like "Shop Now," "Link Clicks," or coupon codes. On the other hand, loyalty campaigns aim to build a long-term community of advocates who consistently talk about the product, fostering ongoing engagement instead of one-off transactions. Key performance indicators (KPIs) for influencer marketing campaigns often revolve around measuring the cost per view (CPV), cost per reach (CPR), and click-through rates for campaigns that include website links.

How do you navigate potential challenges or risks, if any, associated with working with influencers, such as maintaining brand authenticity and managing potential controversies?

The field of influencer marketing is experiencing rapid growth, particularly in emerging markets like India. Evaluating the suitability of an influencer for a brand involves considering several parameters: the authenticity of their content; the ratio of branded to non-branded content they produce; their posting frequency and genre; as well as understanding their tonality and audience demographics. By examining these parameters, brands can ensure a seamless fit between their values and those of the influencer.

In the unpredictable realm of human interactions, it becomes easier to identify influencers with strong opinions or those who align with specific vogues. Brands that do not support such ideologies are better off avoiding collaboration with those influencers.

Have consumer attitudes towards traditional advertisements shifted in favour of influencer-generated content?

The landscape of content consumption has undergone significant transformations, driven by widespread access to the internet, increased screen time, and the prevalence of mobile devices. Today, individuals spend an average of four hours on their smartphones, engaging with diverse social media platforms. Consequently, the value of content has skyrocketed. This shift has paved the way for a multitude of aspiring creators, hailing not only from urban regions but also from tier 2 and tier 3 cities. 

What's fascinating is that this trend extends beyond boundaries, with regional and hyper-local segments emerging as powerful players. Notably, most content consumers belong to the Gen Z demographic, known for their voracious appetite for content.

Gen Z and millennials seek genuine insights into brands, and long to uncover the social causes and authentic narratives associated with them. Their exposure to global happenings and the abundance of international content, such as Korean, American and European creations, have reshaped their expectations, compelling brands to convey more than mere commercial identities. In essence, for a brand to resonate and engender belief, it must genuinely embrace its purpose and actively communicate it to the world.

How do you handle influencer compensation and contract negotiations? What factors are typically considered when determining influencer fees?

The dynamics of negotiation and financial investment play a pivotal role. With the industry continuously maturing, standard practices have emerged, offering ballpark figures for compensation across different tiers of creators, namely nano, micro, and macro influencers.

Assessing the worthiness of their costs entails a comprehensive evaluation of factors such as views, engagement rates, and alignment with the brand's ethos. Each brand collaboration necessitates a contractual agreement, meticulously outlining the influencer's obligations, mandates, guidelines, the brand's conceptual framework, deliverables, and payment modalities.

This contractual framework establishes a transparent and coherent structure for all parties involved: brands, influencers, and agencies alike. By formalising expectations and defining the parameters of the partnership, this process ensures clarity and sets the stage for successful collaborations in the ever-evolving influencer marketing landscape.

What role do you see influencers and content creators playing in the future of the ad industry?

The industry of influencer marketing is experiencing remarkable growth, with creators from metropolitan areas and an increasing number of regional and hyper-local influencers making their mark. In India, where regional content and consumption thrive, the content community is reciprocating and poised for continued expansion. Furthermore, we observe the daily expansion of categories, with finance now playing a crucial role in influencer marketing. Brands recognise the real-time impact of influencer posts, easily trackable brand mentions, and the performance marketing potential that accompanies such campaigns.

Are there specific industries or sectors that are particularly well-suited for influencer marketing? Conversely, are there industries where it may not be as effective?
 

Influencer marketing proves effective across all industries, particularly when content feels organic, authentic, and genuine, avoiding the perception of a traditional advertisement. Fashion, beauty, and lifestyle categories thrive in the Indian influencer marketing landscape, while influencers from the finance, food, and parenting sectors are rapidly gaining traction. On the other hand, luxury brands face a relatively slower conversion rate due to their unique positioning and target audience.

How do you integrate influencer marketing with other advertising channels, such as social media, traditional media, or online advertising?

The beauty of influencer marketing lies in its adaptability. At Whoppl, we align influencer strategies with the marketing calendars of brands. For instance, during June, when schools reopen, we execute ‘back-to-school’ or ‘back-to-campus’ campaigns. Similarly, we leverage influencer strategies during festive seasons to ensure visibility amidst heavy discount periods and prevent overcrowding. This approach allows brands to differentiate themselves and make a lasting impact.

Beyond this, a larger campaign concept can be developed for television commercials (TVCs), followed by social media campaigns featuring a diverse range of influencers across languages, categories, and regions nationwide. With careful planning and consideration, influencer marketing occupies a significant position within the advertising funnel.