Ranveer Allahbadia Controversy: Deals Slip Through, Influencers' Rates Decline As Effects Linger

One content creator, one comment, one video, yet a multitude of repercussions.

Recently, Ranveer Allahbadia, India's top YouTuber and Podcaster, faced significant backlash due to an inappropriate remark made during an appearance on Samay Raina's show, India's Got Latent.

After several days of scrutiny, Ranveer seems to have found some relief, as the Supreme Court has allowed him to continue uploading his podcasts. However, the ripple effects of his controversial comments are still being felt across the creator economy, with many influencers reporting a decline in their rates.

"The drop is significant, with rates falling by over 50 percent in some cases, and in some instances, influencers are not even being considered," said Sumon K. Chakrabarti, co-founder & CEO of the ad agency Buffalo Soldiers.

"The situation is such that while renegotiations are happening if an influencer isn't even being considered, there's nothing left for them to negotiate," said Chakrabarti.

Chakrabarti also thinks the impact of the Beer Biceps (Allahbadia's company name) fiasco will be long-term. "While the public memory is short, brands and agencies are re-evaluating what their ROI (return on investment) will be by collaborating with influencers and whether it is good enough to take that risk. This issue has led to a larger conversation with brands evaluating whether the collaboration will be a flash in the pan ROI or will it be a larger statement a brand wants to make."

This isn't it; influencer marketing professionals have stated that disagreement occurs frequently in the creator's environment.

Stand-up comedian Harsh Gujral recently said during a performance that he removed two episodes of his new program, Escape Room because he was afraid of criticism.

According to the marketer mentioned above, YouTuber Gaurav Taneja, also known as the Flying Beast, saw a halving of his rate in 2022 after becoming involved in a scandal.