Alright this is a cool one indeed. The illusion is a bit more advanced because once you thew the tags, you manipulate their vision so the tags become butterflies. You are not adding/creating, but directly manipulating things, hence it can be considered more advanced. Then you make the opponent believe they are sinking into the ground and immobilize them, due to sense of touch. And then you can place the tag on their head. It is put in the Paralysis/Restriction group of genjutsu techniques, since it makes you think that you are sinking and it immobilizes you, of course you also trick the opponent's vision by making him believe that the tags are butterflies.
Ah the analysing part. I thought a lot about this one and finally noticed something about this illusion. The first inconsistency you will notice in the illusion is that the butterflies do not flap their wings, rather they aimlessly float in your direction, in a similar manner to thrown projectiles. So you definitely need to watch carefully. If you're a vigilant ninja, you can get away with that. The moment you work that out, you can manifest a rocky armour around yourself (e.g. such armour as the Hardening Technique) to dispel the illusion, whilst protecting you in case the opponent attempts to detonate the paper tags. Of course you can also watch for details such as that the butterflies are animals, and animals are usually summonings in the naruto verse and they have to be summoned, to summon a summoning you need to bite your thumb and also smoke will appear. But in my opinion it is better to do what I said in the first part in my analysis, because there might be ninjutsu techniques for butterflies creation. I mean I have no clue if such technique exist but oh well, just to don't risk and play safe.
I wanted to ask you a question about this. Can I not place the tag on their head? Like only do the first two things?