Influencers Vs. Celebrity Endorsement: Understanding brand preferences and sponsorship disclosure

Abstract

The present study focuses on exploring the activities of traditional Indian celebrities and social media influencers on Instagram with respect to sponsored and non-sponsored content. In addition, the study investigates the effect of the recent ruling by Advertising Standards Council of India regarding mandatory disclosure of sponsored content on social media posts. Posts of top ten Indian celebrities and influencers, for the second half of 2020 and 2021, were examined using criteria set to derive insights through comparison. Through content analysis, the study finds that Indian influencers are more active on Instagram vis a vis the traditional celebrities, though celebrities share more sponsored content. The results further show that while celebrities declared paid partnerships even before the ruling, there has been a jump of more than 500% in disclosure of paid partnerships by Indian Instagram influencers since the ruling, showing the success of clear and strict guidelines in boosting transparency in endorsements. The results of this study can be used by brands targeting the Indian audiences as a starting point to determine the use of the two types endorsers in their communication and marketing strategies on Instagram.