Does Pakistan need influencer

marketing regulations?
Author: Babar Khan Javed
Published on: January 10, 2021
 SUBMITTED BY
ZARAH IRFAN

1957107

ADVANCED INTEGRATED MARKETING COMMUNICATIONS

MASTERS OF ADVERTISING, SZABIST

17th April , 2021

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ABOUT THE
AUTHOR
BABAR KHAN JAVED
Advertising Reporter at Profit by Pakistan Times
Stationed in Islamabad, Babar Khan covers the advertising, marketing, and media
ecosystem, including the stakeholders that control demand and supply of the media
industry in Pakistan. He is a graduate of SZABIST and LUMS and former Editor in Chief
of Substack, a Singapore based online media platform linking writers and readers.

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 REASON FOR SELECTION
● The boom of influencer marketing in recent times came with hurdles. As more
and more brands want to launch campaigns with content creators and
influencers, agencies and marketing professionals struggle to work with these
content creators and influencers due to no set prices.
● Influencers quote money on the basis of their perception of the brand’s budgets,
there is no anti competitive clause bounding them from working with other
brands or competitors making the efficacy of influencer marketing go down
● With a more regulated market, the efficacy of this platform can increase making
it more rewarding for brands and influencers alike.

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 IMPORTANCE OF TOPIC
● Influencer marketing has been on the rise and will continue to be. Business Insider has reported
that the global influencer market will have a worth of. $15 billion by 2022, up from as much as
$8 billion in 2019.
● During the pandemic, a number of local brands such as Lifebuoy, Sunsilk, Surf Excel turned
towards influencer marketing in order to convey brand messages, to create relevance and to
engage with their audience
● Ad production is an expensive and lengthy process. As consumers are now spending more time
on social media, influencers can provide brands with a quick, inexpensive way to produce content
● As more and more brands are opting this route, the market has become price sensitive where
MNCs like Unilever, P&G with bigger budgets have created a lack of uniformity in prices
● With an excessive flow of information, it has become hard for the audiences to make out from
fake and real news. Influencers and content creators have a responsibility towards this in order to
protect consumer rights.

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KEY FINDINGS
“ Millennial audiences will switch to a
new app if their preferred social media
content creator (SMCC) switches as
well”

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● In December, 2020, it was found that Gourmet News Network tried developing a
campaign against packaged milk in order to boost sales of loose milk. Imraz Riaz
Khan, an anchor for the network, posted a video on Facebook and YouTube that
went viral.
● The video had no factual evidence, and ended up creating fear among the consumers
as the consumption of packaged milk was linked to COVID-19 cases.
● Fear and misinformation was created in a pandemic situation which is deemed
under deceptive advertising
● On social media, the viewers can generally tell what is fake and what is real
however this is not the case in mass media
● On the basis of above, the industry is realizing the need for regulation in order to
curb misinformation, spread of fear, and to promote transparency

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● Lack of price uniformity is another key reason why influencers and brands alike are
calling for reforms. Brands refuse to pay influencers or SMCCs (social media
content creators) who have less following and expect them to create content free of
cost.
● A number of influencers work with competitor brands leading to lack of trust
among the audience. The influencers working for L’Oreal will also be working for
Sunsilk lets say , that impacts brand perception
● Chicago based Starcomm Mediavest engaged Machinima to promote Xbox One.
The first group of influencers were given exclusive access to the product and were
required to post content. They were paid $15000 and $30,000 however the rest of he
influencers were paid $1 for every 1000 views.
● The influencers were also not allowed to disclose if they were paid for the
partnership.

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● The case was taken to court where Machinima decided to settle with the United
States Federal Trade Commission (FTC). The FTC also laid out guidelines for the
SMCCs on how and when they should disclose partnerships for complete
transparency.
● Australia has set up a self regulatory body for individuals and organisations who
work in the industry called Australian Influencer Marketing Council (AIMC)
● American Influencer Council has also been set up in 2020 that includes all SMCCs
from Instagram, YouTube, Snapchat, TikTok etc.
● Pakistan’s equivalent for AIMCO and AIC would need to be co-created across the
Pakistan Advertisers Society (PAS), the Marketing Association of Pakistan (MAP),
and the Pakistan Advertisers Association (PAA)

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“ Facebook offered Tik Tok SMCCs
money to leave the video-sharing social
networking service for Reels, which has
not worked”

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CONCEPTS AND
THEORIES
MULTI CHANNEL NETWORKS (MCNs)
A network of social media content creators (SMCCs) who are registered and trained on how to
amplify their engagement and use the platforms, according to best practices. A certain percentage of
these influencers’ income is shared with the network. This concept is considered to be an ecosystem
game changer

DECEPTIVE ADVERITISING
False or misleading information shared by influencers, celebrities or content creators to change the
sentiment or stance regarding a certain matter or a product. Non-disclosure of partnerships and
sponsorships is also considered as deceptive advertising

DISCLOSURES 101 FOR SOCIAL MEDIA INFLUENCERS

A guideline developed by US Federal Trade Commission to ensure transparent influencer led activity. The
main guideline is full disclosure of affiliate partnerships and sponsorships.

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“ VIEWS &
IMPORTANT
QUOTES

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Key Statistics

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$15 Billion
Size of the global influencer marketing industry by 2022

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HIGHLIGHTS

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“ Social media content creators have a
responsibility to disseminate correct
information with full disclosure and
should not engage in spreading false
news

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“ Guidelines and regulation for this
mushrooming industry is necessary
before it grows too big that it can’t be
regulated

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“ Competition Commission of Pakistan is
currently working on its own advertising
disclosures guidance report for the
benefit of consumers and meant to hold
advertisers, agencies, and SMCCs
accountable”

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 T I ONS
E NDA
COMM
RE
● Competition Commission in partnership with Pakistan Advertiser’s
Society and Pakistan Advertiser’s Association along with relevant bodies
must craft a plan to protect consumers, brand legitimacy and help support
the growing influencer industry
● Education and training regarding best practices of social media should be
taught through regulated agencies or organizations for a sustainable future
of the industry
● The local partners of Facebook and Tik Tok in Pakistan such as Dial Zero
and Jack of Digital to help facilitate the process and educate the audience
and SMCCs on the best practices for using the platforms.

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ARTICLE
LINK
https://profit.pakistantoday.com.pk/2021/01/10/does-pakistan-
need-influencer-marketing-regulations/

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Thank You!

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