Challenges of Branding in the Age of Influencers

Globally, branding has evolved substantially over time, from simple symbols and images to complex identities with a tremendous impact on customers.

Early 1900: Several well-known firms were founded around the turn of the century, eventually growing into huge global brands. Coca-Cola (1886), Colgate (1873), and Ford Motor Company (1903) were pioneers, innovators, and brand makers in their own right.

• During this time, brands used magazines and newspapers to establish their presence. Print offers a platform for firms to differentiate themselves through the use of words, logos and images.

1920–1940: Radio had grown significantly in popularity by the 1920s, and station owners turned to advertising as a way to increase the sustainability of their operations. Branding came alive through targeted messages, catchphrases, and radio jingles.

• As a result, brand identity reached a new height. It became memorable, expressive, and relatable.

1940 -1950: Radio was followed by television. Television allowed marketers to communicate with customers more directly than ever before by bringing sound, music, images, and words into their homes.

1950s–1960s: Era of modern branding: Another period of profound change in consumer culture and product manufacture occurred after World War II. Billboards, subway signs, loud architecture, product packaging, and an increasing number of TV commercials—which were made even more spectacular with the introduction of colour TV in 1953—are examples of large, noisy, and highly visible forms of brand awareness.

• Marketers sought to differentiate themselves in other ways because competitors provided essentially the same products.
• Intimate branding has displaced informational branding. The desire for more emotive advertising was what defined this transition in branding approaches.

1960s–1990s: The development of colour television and later computer technology influenced logo design and marketing channels, and from the 1960s to the 1990s, branding expanded from emphasising product quality to including marketing, customer satisfaction, and visual identity.

• Acknowledging the significance of comprehending and fulfilling client wants, businesses started to refocus their attention from mass production to customer pleasure.
• An emphasis on finding the right products for customers rather than the right customers for their products, as a result of a change towards a consumer-centric approach.

1990s–2000s: The internet had begun to fundamentally alter how businesses interacted with their clientele by the 1990s. 

• Websites, email, and eventually social media have made branding more participatory and individualised than ever before.
• Brands have to be innovative, flexible, and consistent to establish an online persona while preserving their traditional presence.

2000s–Till COVID 19: Branding has changed significantly since 2000 as a result of the expansion of social media, the internet, and connected consumers. Digital techniques that prioritise brand contact and experience have replaced traditional tactics.

• The advent of the digital era in the early 2000s brought about significant changes in branding, marketing, and advertising methods. Print advertising is outperformed by TV advertising, but social media advertising surpasses all of them.
• With the ability to target a demographic in Facebook or Google Ads, for example, marketers have greater leverage and are becoming more data-driven and intelligent.
• Additionally, brands have an endless supply of unique hashtags, special URLs, and apps that allow them to significantly raise brand recognition.

Post-COVID 19: Following COVID-19, branding strategies changed substantially. As a result of the pandemic, brands shifted to e-commerce, social media, and virtual experiences as key avenues of communication, hastening the move to digital.

• Also, customers were looking for businesses that shared their values, such as sustainability, health, and social responsibility, and purpose-driven branding became increasingly popular.
• Personalisation became crucial, with companies like Flipkart and Amazon tailoring their suggestions based on user behaviour. Personal care brand Dove and its parent company Unilever started emphasising body positivity and mental wellness in their commercials, which made the language more sympathetic.
• Also, the video conferencing platform Zoom grew by positioning itself as essential tool for remote work and calls, and it modified its business models to accommodate the new home-centred way of life.
• Companies have also incorporated humanitarian messaging; for example, Fevicol modified its logo to promote social distancing.
• Overall, post-COVID branding is more adaptive, emphasises digital, and prioritises social responsibility and authenticity.

Here's an overview of several significant brand strategies:

• Traditional Advertising: Reaching a large audience through conventional media platforms including radio, television, print, handouts, billboards, event marketing, and cold calling.
• Public Relations (PR): Forming connections with influencers and media organisations to generate positive media coverage and enhance brand recognition.
• Celebrity Endorsements: Use the influence of well-known individuals such as actors, athletes, and artists to promote a brand.
• Digital Marketing: Uses a range of modern techniques such as
  • Content Marketing: It is the process of developing and providing valuable, relevant, and consistent content, such as blog posts, articles, and videos, to engage and attract a target audience.
  • Email Marketing: It is the process of advertising products and services, and creating relationships with potential and existing consumers using targeted emails.
• Social Media Marketing (SMM): It uses platforms like Facebook, Instagram, LinkedIn, and Pinterest to build brand awareness, engage customers, and drive traffic to a website or store.
• Search Engine Optimisation (SEO): It optimises a website's content to rank higher on search engine results pages.
• Paid Advertising (PPC): It targets specific audiences and drives traffic to a website using online platforms like Google, Facebook, and Instagram with ads
• Affiliate marketing: It requires working with other websites or people to promote items or services in exchange for a commission on sales.
• Influencer marketing: It is a type of paid marketing in which brands engage individuals with huge social media followings to promote their products.

Branding Strategies Across Generations in India

Every generation has unique tastes, beliefs, and habits that affect how brands interact with them.

Silent Generation (Born Before 1945): These were brand-loyal generations that prioritised family and community and valued stability and simplicity.

• Print and radio advertising were the most effective forms of branding. Direct mail campaigns with simple messaging were highly effective.

Baby Boomers (Born 1946–1964): These generations rely on tradition, reliability, and trust. This generation values established businesses that have survived. For them, family values, long-term durability, and consistent quality are often the main focuses of branding. 

• For this group, advertising channels including print, radio, and television continue to work well. Hence Businesses like Tata and Bajaj emphasize their reliability and long history in their messaging.

Generation X (Born 1965–1980): They appreciate conventional branding techniques. For this generation, quality, affordability, and usefulness are essential. They are more impacted by the performance of the product than by flashy marketing.

• Brands that provide both quality and utility, such as Bata and HDFC Bank, appeal to them. The best media strategy to target this generation is to combine traditional advertising mediums (TV, print) with emerging digital channels (websites, email marketing).

Millennials (Born 1981–1996): They grew up in the internet age and look for businesses that reflect their values and lifestyle. For them, experience-driven, digital-first, and personalised branding strategies are critical. 

• Social media and influencer marketing are essential tools for communicating with millennials. Companies like Amazon India, Swiggy, and Zomato prioritize simplicity, technological integration, and personalised experiences.
• Influencer marketing and social media initiatives on sites like YouTube and Instagram typically attract them.

Generation Z (Born 1997–2012): They are the most tech-savvy generation, they look for brands that are genuine, inclusive, and truthful. For them, branding strategies must be dynamic, fast-paced, and relevant to societal themes such as sustainability, equality, and mental health.

• This generation interacts with brands via social media platforms such as YouTube, Instagram, and TikTok, where influencer partnerships and short-form video content are prevalent.
• Companies like Nykaa and Mamaearth, which provide cruelty-free and environmentally friendly self-care products, have benefited from this trend.

Influencer marketing is the practice of collaborating with individuals who have a substantial social media following to promote a product, service, or brand.

Influencer marketing employs two effective strategies: social proof and word-of-mouth promotion. Customers trust recommendations from influencers since they share similar interests and values. It's like getting a recommendation from a reliable friend.

By providing content (such as articles, videos, and stories), influencers leverage their audience's trust and engagement to improve brand awareness and revenue.

For instance, a food blogger reviewing a restaurant, a tech influencer displaying a new device, or a fashion influencer showcasing a new clothing line

Difference between Influencer Marketing and Celebrity Endorsements: Influencer marketing targets people who have established online authority in a particular niche.

• Whereas celebrity endorsements are based on the fame and widespread popularity of famous individuals such as athletes. Actors, for example, who appeal to a broad demographic.
• Nevertheless, both strategies seek to use someone's influence to advance a brand.

Types of Influencers

There are two ways to categorise the influencers.

One, as proposed by Malcolm Gladwell in his book The Tipping Point. distinguished three categories of influencers according to their style and the kind of content they create. They are mentioned below:

• Mavens: Mavens are knowledgeable influencers and industry experts. People are drawn to the informative content that they create and circulate. For example, instructors, fitness and health experts, are part of this category.
• Salespeople: Salespeople are tremendous influencers with significant persuasive power. Though influencers in digital marketing and specialised marketing fields come into this category, however, anyone can be a seller.
• Connectors: These people have extensive networks and widespread influence. They have perfected the technique of word-of-mouth advertising. Celebrities, for example, are connectors.

Two, according to the number of followers

• Nano influencers (less than 10,000 followers)
• Micro-influencers (10,000 to 100,000 followers)
• Macro influencers (100,000 to one million followers)
• Mega influencers (over one million followers)

Brands are increasingly depending on social media influencers to increase their visibility and reputation, and influencer marketing has unquestionably acquired enormous traction over the past ten years.

The main reason for this shift is the effectiveness of influencers in increasing target audiences’ brand awareness and interest.

In the influencer era, branding faces unique challenges due to shifting social media dynamics, consumer expectations, and cultural relevance.

Influencers may help brands reach a wider audience and build genuine relationships with their target customers, but there are some risks to be aware of.

Here's a look at why this is happening and its potential consequences:

The Positives

• The Growth of Marketing Influencers
  • TRUST AND AUTHENTICITY: Influencers can influence decisions more successfully than traditional advertisement practices since they have developed close, genuine relationships with their followers. This authenticity leads to trust and hence better engagement and buying decisions.
  • DOMINANCE OF SOCIAL MEDIA: YouTube, Instagram, Tik Tok or similar platforms have emerged as the main base for influencer marketing because they provide unparalleled reach and interaction through interactive and visual content. Influencers serve as an intermediary between audiences & businesses, and hence influencer marketing has grown in popularity as a result.
  • INFLUENCERS WITH FEWER FOLLOWERS: Brands are now able to reach niche consumers in ways that traditional mass marketing just cannot thanks to the growing power of smaller-scale influencers, especially micro and nano influencers.
• Value for Money:
  • COST EFFECTIVE: Influencer marketing is cost-effective, especially for influencers with smaller followings. Traditional branding strategies, such as TV, print or billboard commercials, typically need a larger budget and have less capacity to accurately target a certain population.
  • BETTER ROI: Micro and nano-influencers provide superior ROI at lower costs than traditional advertising initiatives. Their unique knowledge ensures a deeper engagement.
• The Transition of Branding from Traditional to Social & Digital Media:
  • ACCURATE AUDIENCE TARGETING: Companies can engage influencers with fan bases that match their target demographics to ensure that messages reach the intended audience.
  • REAL-TIME INTERACTION: Traditional branding strategies such as print and television commercials produce little to no immediate reaction. In contrast, influencer marketing is based on real-time contact and input, allowing businesses to make swift changes.
• Challenges to Traditional Techniques:
  • THE PROBLEM WITH TRADITIONAL ADVERTISING IN THE PRESENT DAY: Radio, print, and television advertisements have long been key components of branding. To reach today's audience, traditional advertising is less effective due to the growth of streaming platforms, and digital media consumption
  • CUSTOMERS FAVOUR INFLUENCERS OVER CORPORATE BRANDING: Customers have demonstrated a preference for accessible, human personalities over nameless companies. Influencers are frequently regarded as more relatable and reliable than corporate spokespersons, which has given influencer marketing an advantage.

The Negatives

• Fake Followers Menace: A major issue is the presence of fake followers and engagement metrics. By purchasing accounts, many influencers may artificially increase their following, producing false engagement metrics.
• The Changing Expectations of Consumers: As customers grow more comfortable with influencer marketing, their expectations change. They prefer realistic material and real interactions over well-produced ads. Companies need to modify their approaches to satisfy these evolving demands, emphasising the development of genuine connections via influencer collaborations.
• Over Commercialisation Leads to Trust Issues: When influencers promote too many products or are seen as endorsing anything at the right price, trust may be eroded. If influencers are seen as being too promotional or not associated with the brand, the brand's reputation could be negatively impacted. This diminishes the effectiveness of influencer campaigns over time.
• Transparency and Disclosure: If followers think the influencer is not being honest about sponsored ads, the influencer's and the company's reputation could suffer.
• Potential Controversies and Brand Reputation: Because they are human, influencers occasionally spark public controversy with their words or deeds. Controversial acts or remarks by an influencer can have an immediate effect on the brand they are supporting. The brand can be drawn into a public dispute involving an influencer.
• Juggling Brand Control with Creative Freedom: When brands work with influencers, they relinquish some control. While influencers offer creative authenticity, companies must ensure that the content aligns with their values and legal obligations. It is challenging to strike this balance.
• Managing Crowd Culture: Social media has created "crowd culture" by uniting groups with similar beliefs, passions, or pursuits and elevating their voices, as demonstrated by the "BlackLivesMatter" or many similar campaigns. To avoid criticism and build genuine relationships, brands must adapt their strategies, focusing on authenticity and understanding these communities, which is not easy.

Influencer marketing has grown in popularity over certain traditional branding strategies because of its authenticity, affordability, and targeted audience.

Although influencer marketing is effective in many circumstances, businesses should strike a balance and not entirely abandon more traditional strategies.

Businesses blend the best aspects of both strategies to create an integrated marketing strategy that engages consumers through a range of media to avoid over-reliance only on and ensure longevity in their branding endeavours.

For example, scheduling influencer-attended events with traditional media coverage may enhance reach. Paid commercials mixed with influencer-led social media campaigns can improve messaging across several channels.

Is Influencer Marketing A Fad or A Long-Term Strategy?

It is yet unclear how the influencer marketing sector will develop in the future.

Some experts believe that influencer marketing is a developing strategy that will continue to shape how businesses engage with their target market.

As social media usage increases and consumers rely more and more on online recommendations, influencers will remain essential in building brand recognition, loyalty and trust.

They also believe that the creator economy is continuously expanding. Since influencer outreach creates genuine connections online and drives business growth, it should, if anything, continue to be at the centre of your marketing strategy.

Other experts believe that influencer marketing is still in its infancy as a branding and marketing technique. Although influencer marketing originally emerged in 2006, many companies have yet to adopt it because they believe the market is not ready.

Only time will tell whether this is a passing trend or a long-term branding and marketing strategy.

In summary, even though influencer marketing has completely changed branding in India, nonetheless, it comes with a lot of possibilities and challenges.

On the one hand, it allows marketers to reach a wide range of consumers, work with local influencers, and attain high levels of engagement at comparatively minimal expenses. 

On the other hand, it poses challenges such as fake followers, a lack of transparency, and trouble calculating return on investment.

Additionally, since the public distrusts excessively sponsored material and there is an abundance of content creators, authenticity and ethical practices are equally vital.

Indian marketers must prioritise real influencer collaborations, embrace data-driven strategies, and link campaigns with consumer and cultural values to create enduring impact and trust in this changing market.