Brand hopping may no longer be an option for social media influencers

livemint.com:

Mint he is considering the option as he himself rides a Jawa. Short-term contracts are better for creating hype around new launches or promotional offers but long-term partnerships with influencers build more consumer trust, said Shardul Verma, the marketing lead at Jawa. The selective approach of brands narrows options for influencers during the festival season, a period they rely on to boost earnings.

Companies, too, set aside higher budgets for digital marketing to benefit from creators’ appeal. The approach will have a lasting impact on India's influencer marketing that, according to Ficci-EY estimate, is expected to swell to ₹34 billion by 2026 from ₹19 billion in 2023. "Brands have transitioned to influencer marketing but haven't switched from the traditional ad mentality of having filmstars and other celebrities signed for ads on long-term contract basis, for which they would get royalties for that duration, so it would make sense to them," said Raghav Sharma, who has a combined YouTube and Instagram following of 282,800 on his handle @raghav_sharmaaaaa.

“As influencers, they don't give us any royalty, they pay us for one video and may expect us to keep four grids free of any promotional content, which essentially means no other brand deal in about a month," he said. Sharma, who earns 80% from brand endorsements, is not comfortable with just collaborating with one brand and reducing his avenues of income. Companies feel they need a more rigorous approach to brand partnerships in a cluttered online landscape.