12 Leaders The Economist April 2nd 2022
A better combination of devolution and centralisation would
compel governments to work together. Leaders in Scotland and
Wales want more say over issues that affect all of Britain, such as
immigration and relations with the European Union. They
should get it. In exchange, they should let Westminster coordi
nate areas of national importance, such as major transport links
and energy security. Tougher central scrutiny is needed, too. If
schools in Scotland or hospitals in Wales are failing, Westmin
ster has a legitimate role in helping turn them around.
If the dup tries to block devolution from being restored in
May, Westminster should remove the veto power wielded by
Northern Ireland’s two largest parties, one of which backs the
union and the other a united Ireland. Making assembly rules
fairer would boost parties that are neither unionist nor republi
can. The political culture needs to change, too. The snpshould
accept that its dream of independence will not soon be fulfilled.
It is failing its own people if it chooses not to work with West
minster partly for fear that they may become content with thestatus quo. For their part, the Conservatives should stop using
the spectre of secession to stir up their own English voters.
Last, the heat needs to be taken out of Brexit, which further
strained the union. Liz Truss, the foreign secretary, is right to
seek a new deal with the eu on the flow of goods to and from
Northern Ireland, and to downplay threats to trigger Article 16,
the suspension clause of the Brexit treaty. Softening the sharp
edges of Brexit, for example by making it easier for students and
artists to travel, would make remaining in a United Kingdom
outside the eu more palatable for the majorities in Scotland and
Northern Ireland who voted to remain within the bloc.One for all
The union has proved surprisingly robust in the face of the
threats of Brexit, rising separatism and Mr Johnson’s populism.
Devolution enshrined the noble principle that the nations of the
United Kingdom should take control of their ownaffairswhile
working in a greater whole. It is an idea worth saving.nI
t is a sure sign that a hot trend hasreachedthemainstream
when the tax authorities catch up. This week China promised a
taxevasion crackdown on socialmedia influencers, who are
paid by brands to promote products online to armies of follow
ers. One of the big stars, Viya, a 30something fashionista known
as the livestreaming queen, has already been fined $210m for
not declaring her income. The size of that levy shows the sheer
scale of the industry, which accounts for 12% of online sales in
China. Outside China, influencers are also likely to have an en
during role in ecommerce (see Business section). For all firms
with brands—and together those brands are worth over $7trn—it
is time to realise that influencing is more than just a hobby.
The use of personal endorsements used to be about harness
ing existing celebrity power. Elizabeth Taylor
touted ColgatePalmolive’s shampoo in the
1950s, and Michael Jordan’s deal in 1984 with
Nike revolutionised both basketball and brand
ing. Influencers turn the logic on its head: sell
ing things helps make them more famous.
Through curated feeds of clipped videos and fil
tered photos they offer recommendations to
consumers, mingled with glimpses into their
daily lives that give their artifice an aura of authenticity. Some
times they disclose how they are paid. Often they do not.
Initially dismissed as credulous GenZ folk who had mistak
en posting selfies for having a job, these entrepreneurs have be
come a big business, boosted further by the ecommerce surge
from the pandemic. Total spending on influencers by brands
could reach $16bn this year. Whereas the number of wannabe in
fluencers outside China is in the millions, an elite of under
100,000 of them who have over 1m followers each get the bulk of
revenues and the front seats at fashion shows.
Their staying power suggests that they add value in several
ways. They can save money: Elon Musk is an honorary influenc
er whose raucous online presence lets Tesla do without any conventionaladvertising(General Motors blew $3.3bn on it in 2021).
Influencers’ networks reach new audiences, particularly youn
ger shoppers. Global brands can localise their appeal by cutting
deals with them. In China local shopping festivals and style sen
sibilities matter, so transplanting marketing campaigns from
the West does not work. And influencers are technologically
proficient in a way that oldstyle brand ambassadors never were.
They are quick to adapt to newer platforms like TikTok and to the
everchanging algorithms of older ones like Instagram.
Yet onethird of brands do not use influencers. They worry
about tarnishing their reputation. Having a swarm of freelance
advocates is riskier than the commandandcontrol campaigns
of the “Mad Men” era. And the industry is a Wild West, awash
with fraud and manipulation.
Despite this, ignoring influencers is a mis
take. Their share of digital advertising budgets
is still low at perhaps 3%, but it is rising fast.
The boundary between entertainment and e
commerce is blurring. And the most popular
marketing strategy of the 2010s—ads targeted
through Google and Facebook—is under threat
as new privacy standards, including on Apple’s
iPhone, make it harder to spy on potential customers.
To get the most out of influencers, brands should set a clear
strategy. They should expect more regulation on consumer pro
tection: China’s crackdown may also include limits on spending
and content rules. The guiding principle should be to use only
influencers who disclose to their audiences that their posts are
paid. As the Wild West phase ends, brands should also embrace
new analytical tools that help them gauge the performance of in
fluencers, sorting the conartists from the stars. It used to be
said that only half of all advertising spending worked, but it was
impossible to know which half. Now brands can control only
half of what influencerssay,but they may be able to calculate
100% of the value they add.nSocial influencers are becoming a serious businessThis leader is amazing!! #ad
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