In 2024, we followed many cases involving digital influencers. We witness situations of arrests, the dissemination of banned online games, fraud in raffles, and even money laundering. Of course, we cannot generalize and claim that all digital influencers act unethically and/or illegally.
Still, we can affirm that many companies that hired digital influencers who went through the above-mentioned situations suffered damage to their reputation. When a company associates its own image or that of its product with a digital influencer, it means that he/she uses their influence to promote the image or the product. Everything that happens negatively in the digital influencer's life will automatically be linked to a company's image or product.
After all, the role of the digital influencer is to promote brands and products to their own audience, indicating thatwiththey use in their daily life. That they are part of your first and only choice in your own daily life. For this reason, companies seek influencers who have the largest number of followers. If the follower bubble buys into the idea of this connection between the brand or product and the influencer's life, these followers will purchase the products and also recommend them within their own professional and personal communities. Thus further increasing the visibility of the brand or product and generating sales conversion, which has been the company's goal from the beginning of hiring the digital influencer.
Theoretically, companies should hire digital influencers who have values that are synergistic with those of the company itself, even to avoid the promotion sounding fake. However, that has not been what has been happening. The influencer who is trending at a given moment is the one chosen by the company's marketing department or advertising agency for promotion.Of course, there are already companies that work with targeted brand and product promotion, acting strategically, but this is not actually the case in most companies.
We can draw a parallel with a Brazilian series where the villain promotes Lolaland on social media. In the series, what matters is appearance, likes, sales, and money. There is no concern whatsoever regarding consumers and the general public. It means "vale tudo" on social media.
It is important to remember that influence refers to the process by which a person or thing exerts effect on the opinion, behavior, or personal values of citizens. This can occur in various ways, including persuasion, for example, authority or social pressure. Influence is a dynamic force present in various spheres of life, from everyday interactions to broader contexts such as media, politics, and culture. The responsibility of the digital influencer goes beyond simple entertainment; it shapes perceptions, influences decisions, and can have real impacts on the lives of followers as a whole.
Reputational crises resulting from the hiring of digital influencers can directly impact companies in various ways. Associating with influencers without strategic alignment can result in loss of credibility, alienation of consumers, boycotts, and devaluation of the brand or product.Furthermore, controversies involving influencers can go viral (and indeed go viral), requiring quick responses to contain the damage.
Due to the above, we recommend that some measures be taken within the companies before hiring digital influencers. Since prevention is always cheaper than remediation.
The compliance process applied to hiring is always effective. The marketing department or the executive board should not proceed with hiring the influencer, even if it is urgent due to being a current hit, without first having the influencer's company and the influencer himself undergo a due diligence (reputational analysis) that can be conducted internally by the company's Compliance department or by law firms that specialize heavily in these services. The goal is essentially to conduct a detailed analysis of the influencer's history, assessing their behavior, values, and any previous controversies.
Furthermore, we also recommend including the legal department in the drafting of the service provision contract. There are a series of points applied to this contract that must be considered by the legal department and the hiring company in order to prevent risks. A well-drafted contract may even include obligations to be fulfilled by the influencer in the event of an eventual crisis.
The last point would be the continuous monitoring of the influencer during and after a period at the end of the contract. In case of crises, it is vital that the company and the influencer or the management team maintain agile and transparent communication, demonstrating commitment to ethics and responsibility.
In conclusion, companies must exercise even greater caution when hiring digital influencers. I understand that most companies do not want, at all costs, to miss out on a great opportunity with an influencer who is trending in the market. After all, companies want to sell and make a profit. And social media allow the conversion of influence into purchases. Each like is very valuable. However, reputational risks exist and cannot be underestimated. This month's profit could be next month's loss.
