As influencer marketing spends in India reaches an estimated Rs 2,000 crore annually, recent reports about fake accounts and bots among Instagram influencers' followers ring alarm bells.  

A recent study by an influencer marketing platform KlugKlug revealed that over 60% of the Instagram followers of nearly 2 out of 3 Indian influencers are fake. The study finds that India is at the forefront of bot trends though it's rampant across the globe.  

This issue comes when marketers worldwide face pressures to demonstrate ROI amid economic headwinds and inflation. Fake engagement distorts market metrics, drains ad spends, erodes consumer trust, and undermines genuine influencers. 

"Fake followers are a major problem impacting the reliability and performance of influencer marketing," says Vikram Kumar, Senior Manager-Digital Marketing, Dabur India Ltd. "It damages confidence among brands, influencers, and customers and lowers campaign performance."  

"This is a challenge every brand is facing," echoes an Emami spokesperson.  

“On any given day, a regular brand sees a 30 to 40 percent wastage on influencer marketing, and for gender-skewed, female-oriented beauty and lifestyle brands, this can be as high as 80 percent. This means that in an influencer marketing economy valued at up to Rs 2,000 crore, almost 50 to 60 percent of that investment is wasted,” says Kalyan Kumar, Co-Founder and CEO, KlugKlug.  

Most advertisers have long been aware of this fraud but continue to rely on influencer marketing because it still offers them better return of investment (ROI) than traditional advertising, experts say.  

With Meta failing to address the issue, brands and agencies have taken it upon themselves to curb the pilferage and optimize their spends on creator economy, which offers them good returns on investment (ROI). They now adopt rigorous vetting processes to ensure influencer authenticity before hiring.  

"An influencer with an authentic follower count of 80% or more is usually considered safe," notes Kosal Malladi, Vice President, Madison Loop.  

Low cost, better ROI

Influencer marketing has emerged as one of the most effective ways for brands to become household names. Disruptive, direct-to-consumer brands were among the earliest adopters, with large brands following during the pandemic. This period provided a conducive environment for the creator economy and influencers, who surpassed celebrities through unique storytelling and direct engagement.  

Over the last two years, influencer marketing has proven to drive lower customer acquisition costs, experts say. According to Statista, 60% of marketers agree that influencer marketing offers higher ROI than traditional advertising.  

ROI can be challenging to measure but influencer marketing has the potential to grow web traffic, social media traffic and e-commerce sales,  all typical ROI measurements, experts point out.  

For social media, creator management can help improve both follower count and engagement through authentic connections that drive positive sentiment. For e-commerce, they help drive conversions and can increase average order value (AOV). It can also reduce the time between first and second purchases as well as facilitate a reduced return rate. 

Big brands, from auto to packaged food to fashion and finance, have upped their marketing budget on influencers reaching up to 10 per cent of overall AdEx. Homegrown D2C startups, especially in cosmetics and fashion, spend up to 50%.  

Driven largely by Instagram reels, India's influencer marketing industry is expected to double in three years-Rs 3,500 crore by 2026 from Rs 1,900 crore in 2023, according to a FICCI-EY report. Businesses increasingly turn to social media influencers to drive sales and deepen brand connections.  

The murky world of bots 

The digital world has an ecosystem that creates bots, inflates follower counts, and generates likes, shares, and views for money. These services are offered to creators through online agents at all levels, including micro and nano-influencers.  

"Some fraudsters have also entered the space. They even offer 'blue tick' verification packages and disappear after taking money online," says a nano-creator who lost Rs 5,000 to a cheat in a verification scam.     

Platforms update their algorithms to remove fake followers and bots, but these efforts are often short-lived and bots often return quickly, experts say.  

Moreover, a large portion of AdEx is spent directly on social media promotion, with FMCG brands allocating about one-third of their digital media spend. However, the prevalence of bots threatens to disrupt the dynamics of digital marketing.  

Brands cautious but increasing spends

Most brands conduct regular audits of their influencer databases, removing accounts that show signs of fraudulent activity. However, they continue to increase their budgets, as influencers deliver on brand metrics at a low cost.  

“Advertisers have increased their budgets because influencers offer great visibility and performance marketing,” says Sahil Shah, President of Dentsu Creative. “India’s top influencers have cultivated real fan followings organically.” 

Vikram Kumar noted that Dabur’s investments in influencers have increased. “We have our guardrails and checkpoints in place. We’ve allocated more resources to find and nurture the right influencers for our brand.”  

Sahil Gupta, Lead – Influencer Marketing, Interactive Avenues, adds, “Boosting or promoting content to reach the right audience is the best strategy. Performance marketing through influencer content is yielding excellent results, and more brands recognize this opportunity.”  

Malladi agrees but notes, “Brands are ready to invest more but have identified fault lines. Questions about fake followers, the role of the medium, tracking, and costs need answers. If resolved, influencer marketing will see massive growth.” 

Third-Party tools  

Several digital firms offer specialized tools to verify influencer authenticity. Emami implements stringent audit measures with influencer analytics and audience authenticity verification tools. Dabur uses third-party verification platforms to provide reliable data and metrics on influencer authenticity, reach, and impact.  

“We implement clear terms with influencer management partners and engage in long-term partnerships with influencers who share our brand values,” says an Emami official.  

While multiple tools identify fake accounts using various data points, none can guarantee 100% accuracy, says Malladi.  

Gupta echoes, “There is no foolproof method to detect fake followers. Tools claim to identify 'fake followings,' but they have limited API access and often extrapolate sample data.”  

Growing call for regulatory measures  

Advertisers are calling for stricter regulatory measures and enhanced transparency in the creator ecosystem. Despite long-standing criticism, major tech companies have not effectively addressed this issue. "Tech firms have not been able to get rid of bots," says Shah.  

Experts believe addressing this challenge requires collaborative efforts from stakeholders worldwide to uphold the integrity and credibility of influencer marketing.  

Consolidation is the key  

Influencer marketing is set to become a key way for consumers to interact with brands. Experts predict that technology will enable smooth, fast collaborations, making campaigns more immediate and relevant.  

“Micro and nano influencers will continue to offer low-cost, high-engagement alternatives to traditional advertising,” says Vikram Kumar. “Improved analytics and AI will help brands measure outcomes accurately, track ROI, and adjust strategies in real-time.”  

Creators are aware that brands use tools to measure engagement and detect fake followers, discouraging deceptive practices. Meta's marketplace provides brands and agencies with authentic data to optimize selection and execution.  

“There are three phases every new medium goes through: Excitement, Experimentation, and Consolidation,” says Malladi. “Influencer marketing is currently at the border between Experimentation and Consolidation and is set to consolidate soon.”  

“What happens next is anybody’s guess, but I believe influencer marketing will consolidate with a few key players and then see a major boom,” Malladi notes.  

Citing TikTok's success in the US, Shah says, “TikTok has integrated purchase options on influencers' pages. Instagram should introduce similar features to help brands invest more in the creator economy.”

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