ASCI H1-FY26: 97% of Ad Violations Originate from Digital Media — Influencers Under Spotlight

 The Advertising Standards Council of India (ASCI) has reported that a staggering 97% of ad violations in FY26 originated from digital media platforms. A large portion of these violations is linked to influencer marketing, where a lack of transparency, failure to disclose paid partnerships, and misleading content has come under scrutiny. As a result, influencers are facing increasing attention from regulators, and businesses are being urged to take responsibility for the ads they sponsor. This update is a wake-up call for brands, agencies, and influencers to reassess their advertising practices in light of evolving regulations.

For Indian marketers, this news signals a significant shift towards stricter compliance and ethical advertising. The growing emphasis on transparency and authenticity in digital advertising is poised to reshape influencer marketing and digital media strategies.

Key Insights 

1. Influencer Marketing Under Scrutiny:

 ASCI’s report highlights that a significant portion of digital ad violations stems from influencer marketing, where influencers often fail to clearly label paid promotions or sponsored content. This is leading to calls for stricter monitoring and regulations. Brands need to ensure that their influencers are fully compliant with ad disclosure standards.

2. Increased Regulatory Pressure:
With such a high percentage of violations linked to digital media, regulators are ramping up efforts to ensure that all digital ads adhere to ethical standards. Businesses and marketers must stay ahead of these changes to avoid fines and reputational damage.

3. Focus on Authenticity and Transparency:
As digital ads continue to evolve, consumers are increasingly demanding transparency. Influencers must disclose sponsored content and avoid misleading claims. Brands that prioritize authenticity in their marketing strategies will build stronger trust with their audience.

4. Influencers as Brand Ambassadors:
Given the increasing regulatory pressure, influencers must act as brand ambassadors who uphold ethical marketing standards. Brands must choose influencers who align with their values and ensure they follow the necessary guidelines when promoting products or services.

5. Actionable Compliance Strategies:
Brands can mitigate potential risks by conducting regular audits of their influencer marketing strategies, ensuring that all advertisements, especially influencer endorsements, follow legal requirements. Training influencers and partners on ad disclosure guidelines will also help prevent violations.

Why It Matters

 For marketers across various industries, ASCI’s findings underscore the importance of compliance in digital advertising, especially in influencer marketing.

• Digital Marketers & Advertising Agencies: Marketers will need to pay extra attention to regulatory compliance in influencer partnerships. Transparent advertising and clear disclosure will become non-negotiable, making it critical to adopt proper guidelines.

   

• E-commerce & FMCG Brands: These sectors are heavily reliant on influencer marketing to drive sales. Brands must ensure their partnerships are in line with ASCI’s guidelines to avoid penalties and maintain consumer trust.

   

• Tech & SaaS Companies: As tech brands increasingly leverage influencer marketing, they must ensure their campaigns adhere to the new advertising standards. Compliance will protect them from reputational damage and legal challenges.

   

• Real Estate & Hospitality Brands: Influencer marketing is also becoming an important tool for real estate and hospitality companies. These businesses should ensure they are transparent and compliant when using influencers for promotions.

Ultimately, this trend signals a shift in how brands will approach influencer marketing — placing ethics, transparency, and consumer trust at the forefront of digital strategies.

Strategic Takeaways / Next Steps:

1. Revise Influencer Contracts: Ensure that all influencer contracts include clear guidelines for ad disclosure and compliance with ASCI’s rules.

    

2. Educate Influencers on Compliance: Brands should provide their influencers with proper training on how to disclose sponsored content and avoid misleading claims.

    

3. Monitor Digital Campaigns: Conduct regular audits of all digital ad campaigns to ensure compliance with regulations. Implement tools that track influencer disclosures and flag potential violations.

    

4. Build Transparency into Campaigns: Communicate the value of transparency to your audience. Ensure that all sponsored content is clearly marked and easily identifiable to viewers.

    

5. Leverage Ethical Influencers: Partner with influencers who have a strong reputation for authenticity and ethical marketing practices. These influencers will not only help you stay compliant but also enhance your brand’s credibility.

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 As the digital advertising landscape evolves, Digilogy can help you build a compliant, transparent marketing strategy that aligns with the latest regulations. Whether it’s influencer marketing, digital media, or overall brand strategy, Digilogy ensures your campaigns are both effective and ethical. Take the next step with Digilogy today.