How are brands and creators changing the game of influence together?

In today's digital world, where social media reigns supreme and influencers hold sway over consumer decisions, the dynamics between brands and creators are undergoing a fascinating evolution.

But what's the secret sauce behind these successful collaborations in this ever-shifting landscape? As brands and creators redefine the playbook for influence and sales, let's delve into the intricate web of strategies driving efficiency and innovation in the creator economy.

During a panel discussion titled 'Secrets of Successful Brand and Creator Economy Collaborations' at Ad:tech 2024, Hari Krishnan, MD, Content and Marcomm, Publicis Groupe, Ankit Desai, Head - Media and Digital Marketing, Marico, Megha Manchanda, Senior VP and Head of Marketing, DBS Bank, Vishal Gaba, Former Associate Director - Marketing, Bira, discussed the evolution of influencer marketing.

Krishnan asked all the panellists about their personal experience when they first started considering influencers or content creators and how they have become a part of their media mix or plans since then.

Responding to this question, Gaba said, “We have witnessed the emergence of this now well-established vertical, where initially the focus was solely on experimenting and collaborating with influencers without any measurement criteria besides follower count.”

Furthermore, he mentioned that today, this has evolved into a structured marketing approach, deeply integrated within specific industries. Now, marketers engage with creators strategically, considering how their brand fits into the creator's universe rather than simply placing it anywhere. This shift has occurred swiftly compared to other industries, where adoption into the marketing mix typically takes much longer.

Striking a similar tone, Desai expressed that all brands begin in the same place. They come across something new and intriguing, prompting them to experiment. Brands invested some money initially into influencer marketing, and as time passed, they started to notice the value this platform offers in its delivery.

“Over time, I have observed a shift where what was once considered an optional addition to our strategic plans has now become a fundamental component. Initially, it was merely an afterthought, something extra to include at the end. However, I have come to recognise its significance, realising that it plays a crucial role in achieving our business goals. Now, I aim to incorporate it from the outset of our strategic planning process and utilise it consistently to ensure successful outcomes,” Desai stated.

Meanwhile, Manchanda said that when DBS Bank runs a campaign, their goal is to convey the appropriate message through an effective channel.

“For us, influencers serve this purpose well. Particularly for BFSI, where we often deal with intricate topics or messages, influencers help us reach the right audience in a relevant manner. Therefore, they serve as a valuable media channel,” he said.

“For International Women's Day, our aim was to run a campaign focused on educating and empowering women about financial literacy and interests. However, we realised that simply bombarding them with complex jargon wouldn't be effective. Instead, we decided to utilise influencers, particularly those from adjacent fields like fashion or beauty, who have a strong connection with our target audience,” Manchanda said.

Furthermore, she went on to say that these influencers can help simplify and demystify the brand’s message, making it more accessible and relatable to women. Their natural rapport with their followers makes them ideal messengers for the brand’s cause. Despite initial hesitation, Manchanda said that they recognised the value of leveraging influencers, especially considering the limited budget.

Krishnan pointed out that alcoholic beverages (alcobev) are a highly regulated category. There are always people who restrict certain things in this category. He asked Gaba, what has been his experience using creators and influencers who don't fall under any set boundaries, and what has been his journey with them, especially in the regulated category like Alcobev?

Responding to this question, Gaba said, “Firstly, even though influencers are not regulated, brands must ensure they avoid engaging in practices that could cause harm to anyone involved, including themselves and the creators. Secondly, in the category I represent, there's a significant emphasis on offline experiences. Bira, as a brand, has prioritised community building. Our approach involves merging communities with experiences and leveraging that community to expand our reach and attract more participants.”

“While you may not be able to recruit thousands of creators or influencers all at once, you can still engage a substantial number of influencers or individuals to join your brand. This approach is easily replicable across various categories. By collaborating with influencers to attract more people and initiate a domino effect, you can steadily build a loyal following. Although the results may not be immediate, from a business perspective, within 6 to 12 months, you will begin to notice an increase in brand supporters, both online and offline, leading to a boost in business,” he added.

Gaba stated that they have shifted their focus from reach to resonance and relevance. While reach remains important, resonance and relevance have become their main priorities. These aspects are crucial for engaging more people.

Moving on, Desai said that one of the joys of the Consumer Packaged Goods (CPG) category is its diversity. With multiple brands catering to various life stages and category stages, there are different tasks at hand.

“However, when we consider the big picture, the fundamental question is: What problem does content need to solve for the brand? Understanding this helps determine the role of content alongside advertising. Each piece of content serves a specific purpose or addresses a particular aspect of the brand's challenges,” Desai said. 

Furthermore, he explained, “If I have a brand like Set Wet, I can't educate my audience about it through an ad film. So, I'll start using content actively. Similarly, for Livon, it can build category elements but can't fully cover beauty and styling in the film. So, choices need to be made. First, determine the role of content. Then, craft the role for influencers. After that, decide the objectives. It's about campaign design, communications buildup, and framework.”

Krishnan asked Manchanda if she has ever encountered situations where she had to deal with risks, especially concerning recent regulations affecting financial influencers. Also, what precautions does she take to ensure brand safety and compliance with regulations?

Megha said, “At DBS Bank, we maintain a robust compliance framework, which we have upheld for the past several years for good reason. Responsibility as a brand is paramount to us, as echoed by some panel members. Transparency is fundamental. Transparency is key, along with awareness of our checks. While influencers have some leeway, we strictly outline boundaries and screen scripts. Our operations adhere to stringent compliance measures and deadlines, ensuring we stay clear of regulatory concerns.”

Gaba said that it's evident that there is always an inherent risk when partnering with influencers because you can't control the content. Before and after the partnership, unexpected issues may arise, posing a 5–10% risk. Every brand should be clear about this.

“The second aspect we focus on is understanding where we fit into people's lives. This is one of our initial considerations. For instance, if someone has been discussing Alcobev for five years, we trust that their endorsement is genuine and lasting. They are not merely following a trend, ensuring compliance with regulations. They are well-versed in dos and don'ts. Additionally, we consider elements like scripts, brand guidelines, and regulatory segments when collaborating with creators,” he added.