In Ghana’s digital landscape, influencer marketing has emerged as a great tool, reshaping how brands engage with their audiences.
However, this rapid evolution has brought to light significant challenges within the industry, particularly concerning transparency and fair compensation of influencers.
State of Social Media In Ghana (By The Numbers)
According to DataReportal, the dominant platform in Ghana is Facebook with an estimated 7.4 million users, followed by YouTube with 6.9 million registered users.
Compensation, Delayed Payments, and Client Demands
There have been a lot of conversations about how well Ghanaian influencers are paid for influencer gigs. Are Ghanaian influencers getting paid fairly? It depends.
On one end of the spectrum, some influencers get high compensation for their work as influencers. In 2022, Ghanaian Tiktoker Jacline Mensah stated in an interview that she made $3000 weekly from TikTok. In 2023, Michy (Diamond Michelle Gbagonah) stated in a radio interview that she earned GHC 250,000 as a brand influencer.
But that’s on the higher end of the spectrum. On the lower end, things are a bit different. Given that Ghana still has a small influencer economy, creative agencies tend to get consulted to gather influencers for various projects.
Most agencies take a commission for projects which cuts into the net pay an influencer receives at the end of a project. Depending on who you ask, the pay for influencer gigs can be hit or miss for the amount of work done.
The current market also doesn’t pay enough attention to “micro-influencers” who may not have huge numbers or followers but still have an impact on their followers especially when it comes to “engagement“.
An influencer we spoke to stated their frustration with delayed payments from agencies and noted other gripes including how agencies don’t foster professional relationships with influencers.
Another influencer corroborated this and stated that agencies sometimes aren’t the best with communications and slow payments were an issue. They stated that working directly with companies yielded more positive experiences, especially with professionalism.
A third influencer we spoke to, who also worked for an agency, stated that some issues come from clients. They said that some clients might not be willing to properly compensate for work done when working with influencers.
Another challenge from clients is the expectation to go “viral” whenever they make use of agencies and influencers. Unfortunately, some client briefs tend to be “vague”, which leads agencies to use a wide range of influencers for a campaign that might achieve the desired results in the end.
Influencer Saturation and Lack of Differentiation
So who exactly is an “influencer”?
At the moment, it’s hard to tell. Most content creators have started branding themselves as “influencers” but don’t really differentiate themselves from their peers.
Currently, there are challenges faced by agencies especially when it comes to identifying suitable influencers for work due to saturation in the space. This issue tends to hinder the adoption and effectiveness of influencer marketing strategies.
The current market also doesn’t pay enough attention to “micro-influencers” who may not have huge numbers or followers but still have an impact on their followers especially when it comes to “engagement“.
Regulation and Taxation
In 2023, the Ghana Revenue Authority (GRA) considered a tax on influencers and bloggers to help achieve its revenue goals. Although it hasn’t be rolled out and enforced yet, it’s best to believe the option is still on the table.
The Authority has also started the process of taxing foreign income on individuals. This tax enforcement could affect influencers who get paid by platforms including YouTube and the X platform.
As far as regulation, there isn’t a specific entity tasked to regulate Ghana’s influencer economy. The lack of a monitoring body to check irregularities especially when working directly with influencers could lead to issues such as influencer fraud, false advertising, and a lack of transparency.
Future Prospects
For future growth, Ghana’s influencer and creative industry must come together to create a framework that ensures transparency, fairness, and mutual benefit.
This could involve standardizing payment cycles, establishing clear contracts, and setting up dispute resolution mechanisms to handle conflicts.
The potential of influencer marketing in Ghana is immense, but realizing it fully requires a concerted effort to build an ecosystem that supports ethical practices and sustainable growth.
A more open and transparent influencer economy could make way for a thriving digital economy that rewards all contributors fairly at the end of the day.
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