India, May 2 -- The power that social media influencers or content creators wield in digital advertising is showing no sign of waning. Data and analytics firm Kantar's Influencer Playbook, released last week, said 67% Indians trust influencer recommendations over traditional advertisements. Another 26% said they like influencer ads but do not trust them blindly. Influencer content outperforms other digital ad formats in driving higher brand favourability and intent to purchase, the study noted. "While influencer marketing is the closest you can come to creating a predisposition towards buying a brand, it is less effective in building long-term brand equity," said Soumya Mohanty, managing director, South Asia, Insights Division, Kantar. The research highlight of greater trust in influencers is significant since using influencers more responsibly, especially, in the health and financial sector, is under the lens, Mohanty said. "It's also critical because more brands are shifting marketing money from other mediums to influencers," she added. Influencer content along with e-commerce and online display ads currently represents the most equitable online media channels in India, the study said. That explains Hindustan Unilever Ltd's (HUL) move to increase its influencer headcount tenfold from 700 to 8,000 in one year, according to a March report in Mint. A Ficci-EY media and entertainment report last year said, "We expect a majority of large brands to use influencers by 2026." The industry will touch Rs.3,400 crore by 2026. Brands continue to leverage influencer campaigns as more than 460 million Indians active on social media spend two hours a day on these platforms, consuming sundry content across entertainment, music, gaming, health, lifestyle, shopping, etc. As the content creator industry expands, regulation has to keep pace. In a surprise move, on Monday, ad industry's self-regulatory body, the Advertising Standards Council of India (ASCI), updated its influencer marketing guidelines to say influencers sharing generic information about financial or health products will not need professional qualifications to do so. However, if they give technical advice on social media, they need to be registered with SEBI or have other financial credentials, in accordance with SEBI rules and ASCI guidelines. Manisha Kapoor, CEO, ASCI, said the regulatory frameworks established by authorities such as SEBI are in place for consumer protection when it comes to market investments. "However, given the rapidly evolving digital landscape, the effectiveness of these safeguards must be continuously assessed. Ongoing monitoring and periodic updates to the guidelines are essential to address emerging forms of influencer content and to prevent potential consumer harm," she added. Shivashish Tarkas, founder of the south-based full-service influencer marketing agency The InterMentalist, said, in today's landscape, all influencers are required to adhere to ASCI guidelines, and that brands have become equally meticulous about following these standards. He expects a surge in influencer business in the south. "The numbers, revenues and the pool of influencers have expanded exponentially. As brands began focusing more on regional markets, the significance of the Southern market in influencer marketing came into sharp focus," Tarkas said. The growth of influencers in Tamil Nadu and Kerala has been explosive while Andhra Pradesh/ Telangana and Karnataka are catching up, albeit at a slower pace, he added. On why influencer campaigns will rise, he said, "The ability to view ads directly on mobile devices, with control over frequency, is far more effective than traditional banner ads. Traditional advertising methods, such as banner ads, fail to provide meaningful data or insights-they cannot tell you who viewed the ad or how often it was seen." In contrast, influencer marketing offers a significant advantage as content creators have dedicated followers who are unlikely to unfollow them easily. "This gives brands an edge in terms of audience engagement and loyalty," Tarkas said. However, Kantar's Mohanty underlines that influencer marketing loses out on brand building. "That is a big challenge as it is too performance oriented. It does not create lasting memories about a brand in a consumer's mind. Without lasting memories, any new brand can come and disrupt them," she added. Tarkas argues that influencer marketing over, say, typically 2 to 3 years has proven to deliver strong, long-term results. Many brands have successfully scaled through this approach, building loyal communities and driving steady growth. "While execution and promotion strategies play a vital role, one thing is clear: influencer marketing remains a powerful tool in brand-building and market expansion."...