Influencer Trust Report - February 2023

About the Advertising Standards Council of India (ASCI):

Established in 1985, the Advertising Standards Council of India (ASCI) serves as the self-regulatory body for the Indian advertising industry. ASCI's mission is to resolve issues related to dishonest, misleading, indecent, offensive, or harmful advertisements, as well as those that unfairly compete in the market. ASCI operates across various media formats, including TV, print, digital, outdoor, radio, and more. The organization's code is enshrined within the Cable TV Networks (Regulation) Act, 1994, providing it with legal authority.

Functions and Areas of Focus:

• ASCI monitors and addresses a wide range of advertising issues, ensuring compliance with ethical standards.
• It collaborates with stakeholders to protect consumers' interests, maintaining the integrity of the advertising industry.

Complaints Management:

• ASCI provides a speedy, independent, and cost-effective complaint resolution process.
• Stakeholders can register complaints at no cost through WhatsApp at 77100-12345 or on the ASCI website.

Training and Advisory Services:

• ASCI offers initiatives like the ASCI Masterclass and 'ADVERTISING ADVICE' (AA) to support industry compliance.
• The AA panel includes experts from various fields, providing non-binding advice to advertisers.

Endorser Due Diligence:

- ASCI assists endorsers in meeting their obligations to prevent misleading claims in ads they feature in.

Independent Jury and Complaint Resolution:

• The Consumer Complaints Council (CCC), comprising 40 professionals, reviews complaints and provides recommendations.
• Retired high court judges handle appeals from complainants and advertisers.
• Technical experts from diverse fields support the CCC and the Review Panel.

Consumer Trust in Advertising:

- A survey conducted by ASCI reveals that 91% of respondents trust advertising to some extent, with 42% having complete trust and 49% partial trust.

- Almost 90% of respondents have made at least one purchase based on advertising.

- 61% of respondents claim to have made three or more purchases based on advertising.

- Trust in advertising is notably high among individuals aged 25 to 44.

Influencer Trust and Behavior:

- Social media influencers enjoy the trust of 79% of respondents, with 30% having complete trust and 49% partial trust.

- 70% of respondents are likely to buy products endorsed by influencers.

- Transparency and honesty about brand associations are the primary factors contributing to influencer trust.

- Lack of transparency, repetitive content, and excessive promotions discourage audiences from engaging with influencers.

More Findings:

ASCI conducted an online dipstick with 820 respondents above the age of 18 about their trust in social media influencers who promote brands online. The report reveals how much consumers trust influencer advertising, what builds trust and what depletes it.

• 820 respondents above the age of 18 were a part of an online dipstick study
• 90% respondents claim to have made at least one purchase based on influencer recommendations.
• Transparency emerges as the no. 1 reason to trust influencers
• ASCI processed 2767 complaints against brands and influencers for lack of transparency since launch of disclosure guidelines.

According to the report, 91% of people trust advertising in general, and 79% of respondents trust social media influencers. Transparency and honesty stood out as the key reasons why consumers trust influencers on social media (63%), followed by relatable content (57%), and personal stories at (53%).

The report revealed that consumers stayed away from influencers when they sensed a lack of transparency (43%), repetitive content (42%), and over-promotion (41%). Overall, it was found that both brands and influencers gained from meaningful partnerships.

Around 64% of consumers felt the brand became more trustworthy when influencers endorsed it, while 58% of those surveyed thought that the influencers became more trustworthy when they endorsed the brand.

Other key findings of the report include:

1. 6 out of 10 respondents claimed they spent at least 2 hours on social media, daily
2. 90% of the respondents revealed they made at least one purchase based on influencer endorsement, while 61% claimed to have made three or more purchases. This behaviour was particularly prevalent among consumers ranging from 25 to 44 years of age
3. Besides established brands, newer brands benefited considerably with their products being discovered through content advertised by influencers

Ever since ASCI launched its influencer guidelines in May 2021, it has processed 2,767 cases against brands and influencers for not declaring material connections. Platforms where the violations occurred included Instagram at 58%, YouTube at 33%, Twitter at 7%, and Facebook at 2%.

ASCI Violations by Influencers:

- ASCI has observed violations of its guidelines by influencers in various categories, including VDA, Personal Care, Fashion & Lifestyle, and Food & Beverage.

- Violations occur on platforms such as YouTube, Instagram, Twitter, and Facebook.

Contact Information:

- For inquiries or complaints, you can reach out to ASCI at [email protected] or visit their website www.ascionline.in.

This report provides insights into the activities and efforts of ASCI in promoting ethical advertising practices and maintaining trust in advertising and influencers among consumers. It also highlights the importance of transparency and compliance in the advertising industry.

For complete report, click link given below:

https://www.ascionline.in/wp-content/uploads/2023/04/influencer-trust-report.pdf