What are ‘influencers’, and how do companies use them for marketing?

What are ‘influencers’, and how do companies use them for marketing?

The Department of Consumer Affairs final week made it necessary for social media influencers to reveal all the fabric advantages obtained by them, together with presents, reductions and awards. Failing to do so will appeal to strict authorized motion. The influencer might even be banned from endorsements for as much as three years.

According to the brand new tips named “Endorsement Know Hows – for celebrities, influencers and digital media influencers (Avatar or pc generated character) on social media platforms”, the Central Consumer Protection Authority (CCPA) may impose a penalty of as much as Rs 10 lakh on producers and endorsers. The penalty might even go as much as Rs 50 lakh for subsequent offences.

What is an “influencer”?

An influencer is a person who has substantial management over the behaviour of others. They have a large following, and their viewers tends to be influenced by their decisions, opinions, and choices.

When they’ve a big following on social media and their circle of affect lies on the platform they use, these are referred to as social media influencers. In a advertising context, they work with companies and manufacturers to advertise merchandise and companies.

How do companies use them for advertising?

Unlike direct promoting, right here, manufacturers leverage the viewers of the influencers to drive consciousness about their merchandise and in the end enhance gross sales.

The influencers are paid to advertise the model, believing that their advice will immediate the viewers to purchase the merchandise. This strategy of endorsing or selling specific merchandise by these influencers is called influencer advertising.

Companies starting from e-commerce to on-line gaming are now paying enormous sums of cash for influencer advertising.

While launching the rules final week, the patron affairs secretary Rohit Kumar Singh mentioned that the dimensions of the influencer market in India is Rs 1,275 crore. It is predicted to succeed in Rs 2,800 crore by 2025 with an annual development fee of 19-20 per cent.

Globally, the market is predicted to prime $24 billion by 2025.

Types of influencers

There are a number of forms of influencers, however they are grouped into 4 classes based mostly on the variety of followers.

Nano influencers

These have lower than 10,000 followers. Generally, these influencers are consultants in area of interest areas. Even although their following is low, they’ve proactive and very lively communication with their viewers.


They have a following of 10,000 to 100,000 individuals. They are additionally usually area of interest consultants and have cheap communication with their viewers.

Macro influencers

These influencers have a following of 100,000 to 1 million. These are approached by manufacturers from all fields as they do not typically have a distinct segment viewers. Moreover, they have an inclination to have a extra speedy influence on product gross sales.

Mega influencers

They have a following of over 1 million. Apart from on-line affect, these influencers even have a considerable offline presence. Brands additionally use them for offline promotions and occasions.

Apart from all these, there are a number of classes of influencers based mostly on their niches, like finfluencers (providing monetary recommendation), avid gamers, travellers, musicians, meals critics and style bloggers, amongst others.


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About the Author: Amanda