How 'India's Got Latent' controversy is changing influencer marketing
What's the story
The influencer marketing space is in shambles after YouTuber Ranveer Allahbadia's inappropriate comment on the show India's Got Latent.
Not only has the incident resulted in legal action against Allahbadia and other creators present on the show, but it has also affected other influencers' brand deals.
With companies now shying away from controversies, the incident has created a ripple effect in the industry.
Deal fallout
Influencers lose brand deals amid controversy
Vlogger Shenaz Treasury recently lost a brand deal amid the ongoing controversy.
The brand, a marathon platform, was offering her equity but withdrew their offer after Allahbadia's incident.
"They said they can't afford to have celebrities or influencers because look what happened with Allahbadia," she told Moneycontrol.
"If you say something then someone will come and shut us down. This is a big loss. Brands are being a little wary right now."
Show cancelations
Comedians face show cancelations in controversy aftermath
The fallout of the Allahbadia controversy is not limited to brand deals, with comedians facing show cancelations.
Apoorva Mukhija was dropped as an official ambassador for the International Indian Film Academy (IIFA) awards ceremony in Rajasthan for her participation in India's Got Latent show.
Stand-up comic Anubhav Singh Bassi's shows were also canceled in Lucknow after the Uttar Pradesh State Women's Commission raised concerns over the use of inappropriate language in his comedy acts.
Brand caution
Brands wary of comedy/stand-up genre
Sahil Chopra, founder and CEO of ad-tech platform iCubesWire, noted that brands are now wary of associating with the comedy/stand-up genre.
The fear is that an ill-conceived joke could snowball into a national issue.
To tackle this trend, Chopra and other leading influencers and marketers have set up the India Influencer Governing Council to steer influencers and brands toward responsible content creation.
Legal consultation
Brands, agencies seek legal advice amid controversy
The Allahbadia controversy has led many influencer marketing agencies, creators, show organizers and brands to seek legal advice.
Shreya Sharma, lawyer and founder of legal aggregator platform 'Rest The Case,' confirmed that more influencers and marketing agencies have been reaching out for legal counsel since the incident.
Anupam Shukla from 'Pioneer Legal' also reported a similar trend with many approaching him for guidance on potential legal implications.
Contractual changes
Agencies strengthen contracts, vetting processes post-controversy
In the wake of the controversy, influencer marketing agencies are reworking their communication with creators and tightening content creation guidelines.
For instance, Boomlet has improved its content approval mechanism and now seeks regulatory approvals in advance for major campaigns or flagship pieces.
The firm has also updated its guidelines document to cover content rights, intent and sensitive topics more comprehensively.
Strategic shifts
Brands exercise caution in influencer collaborations
Brands are now being more careful and selective with influencers.
Danish Malik, founder and CEO of Boomlet, said the swift reputational fall of top influencers in just four days has been a rude awakening of the fickle digital space.
Agencies such as 'Social Pill' and 'VidUnit Media' have also updated their legalities and contracts to define content responsibilities and immediate remedies if things go south.
Silver lining
Brands may partner with smaller creators
"Controversies like this could push brands to diversify their influencer portfolios. Instead of relying solely on high-profile influencers, brands might explore partnerships with a mix of macro (those with 500,000-1 million followers), micro (10,000-50,000 followers), and nano-influencers (1,000-10,000 followers)," said Ritesh Ujjwal, co-founder of Kofluence.
While India has more than tripled the influencer count to 40.6 lakh last year from 9.6 lakh in 2020, the majority of them are not able to monetize their content.