Influencer marketing
Influencer marketing (also known as influence marketing) is a form of social media marketing involving endorsements and product placement from influencers, people and organizations who have a purported expert level of knowledge or social influence in their field.[1] Influencers are someone (or something) with the power to affect the buying habits or quantifiable actions of others by uploading some form of original—often sponsored—content to social media platforms like Instagram, YouTube, Snapchat, TikTok or other online channels.[2] Influencer marketing is when a brand enrolls influencers who have an established credibility and audience on social media platforms to discuss or mention the brand in a social media post.[3] Influencer content may be framed as testimonial advertising.
Social influence
Most discussions of social influence focus on social persuasion and compliance.[4] In the context of influencer marketing, influence is less about arguing for a point of view or product than about loose interactions between parties in a community (often with the aim of encouraging purchasing or behavior). Although influence is often equated with advocacy, it may also be negative.[5] The two-step flow of communication model was introduced in The People's Choice (Paul Lazarsfeld, Bernard Berelson, and Hazel Gaudet's 1940 study of voters' decision-making processes), and developed in Personal Influence (Lazarsfeld, Elihu Katz 1955)[6] and The Effects of Mass Communication (Joseph Klapper, 1960).[7]
Influencer marketing is also important through social comparison theory. As psychologist Chae reports, influencers serve as a comparison tool. Consumers may compare influencer lifestyles with their imperfections. Meanwhile, followers may view influencers as people with perfect lifestyles, interests, and dressing style.[8] As such, the promoted products may serve as a shortcut towards a complete lifestyle. Chae's study finds women with low self-esteem compare themselves to the influencers. As such, they elevate the status of influencers above themselves. When using an influencer, a brand may use consumer insecurities to its benefits. For this reason, influencer marketing may lead to faulty advertising.[9]
Applications
Marketers use influencer marketing to establish credibility in a market, to create social conversations about brands, and to focus on driving online or in-store sales. Marketers leverage credibility gained over time to promote a variety of products or services. Success in influencer marketing is measured through earned media value, impressions,[50] and cost per action.[11]
A social media influencer's personal brand and product relation with marketers are important concepts. As social learning theory suggests, influencers serve as informed consumers and authenticity matters. When credible influencers match up with the product, consumers will consider the promoted recommendations.[51][52] A study found that respondents see influencers as a neutral authority pitch for a product. Compared to CEO spokespeople, influencers are more approachable and trustworthy. Consumers are more likely to respond to influencers if both parties share certain characteristics and beliefs.[53][52]
A 2015 article depicts that attributions drive endorsers and that globally 77% of shoppers would or may take action following what family, friends, and online reviews endorse. It shows that word of mouth marketing and digital media have changed the impact and reach of endorsements.[54]
Abuse
All criteria used to determine the veracity of an influencer account can be fabricated. Third-party sites and apps sell services to individual accounts which include falsely increasing followers, likes, and comments.[65][66] Instagram has failed to shut down all such websites.[66] One marketing agency, Mediakix tested whether fake accounts could be profitable. The company created two fictitious accounts, built their online presence through paid followers and engagement (likes and comments), and applied for work in marketing campaigns on popular influencer marketing platforms. They published their results, an explanation of how the false accounts were created, and which brands had sponsored them.[67]
An analysis of over 7,000 influencers in the UK indicated that about half of their followers have up to 20,000 "low-quality" followers themselves, consisting of internet bots and other suspicious accounts. Over four in 10 engagements with this group of influencers are considered "non-authentic".[68] A study of UK influencers which looked at almost 700,000 posts from the first half of 2018 found that 12 percent of UK influencers had bought fake followers.[68] Twenty-four percent of influencers were found to have abnormal growth patterns in another study, indicating that they had manipulated their likes or followers.[69]
Influencer fraud (including fake followers) was estimated to cost businesses up to $1.3 billion, about 15 percent of global influencer–marketing spending. Research in 2019 accounted only for the calculable cost of fake followers.[70]
Virtual influencers
Virtual influencers are virtual characters, intentionally designed by 3D artists to look like real people in real situations.[71] Although most of the characters can be easily identified as computer graphics, some are very realistic and can fool users.[72] The characters are usually identified as models, singers, or other celebrities. Their creators write their biographies, conduct interviews on their behalf, and act like the characters themselves.[71] Lil Miquela was a realistic virtual influencer which prompted curiosity and speculation until it was learned that she was created by advertisers.[73]
A study published in 2022 indicate that over half of Chileans have never purchased products recommended by influencers.[74]