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] is a ] and blogger known for her sponsored fashion posts.]] ] is a ] and blogger known for her sponsored fashion posts.]]


'''Influencer marketing''' (also known as '''influence marketing''') is a form of ] involving ]s and ] from ], people and organizations who have a purported ] or ] in their field.<ref>{{Cite web| last=Lipiner | first=Bryan |title=What is Influencer Marketing? An Industry on the Rise|url=https://entrepreneurship.babson.edu/what-is-influencer-marketing/|access-date=2021-03-10|website=babson.edu| date=16 September 2020 |language=en-US}}</ref> 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 ] platforms like ], ], ], ] or other online channels.<ref>{{Cite magazine| last=Martineau | first=Paris |title=The WIRED Guide to Influencers|url=https://www.wired.com/story/what-is-an-influencer/|access-date=2021-03-10|magazine=Wired|language=en-US}}</ref> Influencer marketing is when a ] enrolls influencers who have an established credibility and audience on social media platforms to discuss or mention the brand in a social media post.<ref>{{Cite web| last=Srivastava | first=Pallavi |title=Influencer Marketing: How It Can Make Your Brand Tick|url=https://www.businessinsider.in/influencermarketing-how-it-can-make-your-brand-tick/articleshow/43905913.cms|access-date=2021-03-10|website=Business Insider|language=en-US}}</ref> Influencer content may be framed as ] ]. '''Influencer marketing''' (also known as '''influence marketing''') is a form of ] involving ]s and ] from influencers<!-- Do not link to ]. Influencer marketing describes a different kind of influencer. -->, people and organizations who have a purported ] or ] in their field.<ref>{{Cite web| last=Lipiner | first=Bryan |title=What is Influencer Marketing? An Industry on the Rise|url=https://entrepreneurship.babson.edu/what-is-influencer-marketing/|access-date=2021-03-10|website=babson.edu| date=16 September 2020 |language=en-US}}</ref> 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 ]—content to ] platforms like ], ], ], ] or other online channels.<ref>{{Cite magazine| last=Martineau | first=Paris |title=The WIRED Guide to Influencers|url=https://www.wired.com/story/what-is-an-influencer/|access-date=2021-03-10|magazine=Wired|language=en-US}}</ref> Influencer marketing is when a ] enrolls influencers who have an established credibility and audience on social media platforms to discuss or mention the brand in a social media post.<ref>{{Cite web| last=Srivastava | first=Pallavi |title=Influencer Marketing: How It Can Make Your Brand Tick|url=https://www.businessinsider.in/influencermarketing-how-it-can-make-your-brand-tick/articleshow/43905913.cms|access-date=2021-03-10|website=Business Insider|language=en-US}}</ref> Influencer content may be framed as ] ], according to the ] in the United States.<ref name="FTCendorsements2" /> The FTC started enforcing this on a large scale in 2016, sending letters to several companies and influencers who had failed to disclosed sponsored content. Many Instagram influencers started using #ad in response and feared that this would affect their income. However, fans increased their engagement after disclosure, being happy that they were landing such deals. This success led to some creators creating their own product lines in 2017.<ref>{{cite book |last1=Lorenz |first1=Taylor |title=Extremely Online: The Untold Story of Fame, Influence, and Power on the Internet |date=2023 |publisher=Simon & Schuster |isbn=978-1-9821-4686-3 |pages=215-219}}</ref> Some influencers fake sponsored content to grain credibility and promote themselves.<ref>{{cite book |last1=Lorenz |first1=Taylor |title=Extremely Online: The Untold Story of Fame, Influence, and Power on the Internet |date=2023 |publisher=Simon & Schuster |isbn=978-1-9821-4686-3 |pages=224-225}}</ref> Backlash to sponsored content became more prominent in mid-2018, leading to many influencers to focus instead on authenticity.<ref>{{cite book |last1=Lorenz |first1=Taylor |title=Extremely Online: The Untold Story of Fame, Influence, and Power on the Internet |date=2023 |publisher=Simon & Schuster |isbn=978-1-9821-4686-3 |pages=253-254}}</ref>


== Social influence == == Social influence ==
Most discussions of ] focus on social persuasion and compliance.<ref>Cialdini, Robert. Influence: Science and Practice, Allyn and Bacon, 2001.</ref> 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.<ref>Reichheld, Fred. ''The Ultimate Question: Driving Good Profits and True Growth'', Harvard Business School Press, 2006.</ref> The ] model was introduced in ''The People's Choice'' (], ], and ]'s 1940 study of voters' decision-making processes), and developed in ''Personal Influence'' (Lazarsfeld, ] 1955)<ref name="Katz 2006">{{cite book | last=Katz | first=Elihu | title=Personal influence : the part played by people in the flow of mass communications | publisher=Transaction Publishers | location=New Brunswick, N.J | year=2006 | isbn=978-1-351-50020-3 | oclc=1069711332 }}</ref> and ''The Effects of Mass Communication'' (Joseph Klapper, 1960).<ref name="Klapper 1960">{{cite book | last=Klapper | first=Joseph | title=The effects of mass communication : an analysis of research on the effectiveness and limitations of mass media in influencing the opinions, values, and behavior of their audiences | url=https://archive.org/details/effectsofmasscom00klap | url-access=registration | publisher=Free Press | location=Glencoe (Illinois | year=1960 | isbn=978-0-02-917380-0 | oclc=813851873 }}</ref> Most discussions of ] focus on social persuasion and compliance.<ref>Cialdini, Robert. Influence: Science and Practice, Allyn and Bacon, 2001.</ref> 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.<ref>Reichheld, Fred. ''The Ultimate Question: Driving Good Profits and True Growth'', Harvard Business School Press, 2006.</ref> The ] model was introduced in ''The People's Choice'' (], ], and ]'s 1940 study of voters' decision-making processes), and developed in ''Personal Influence'' (Lazarsfeld, ] 1955)<ref name="Katz 2006">{{cite book | last=Katz | first=Elihu | title=Personal influence : the part played by people in the flow of mass communications | publisher=Transaction Publishers | location=New Brunswick, N.J | year=2006 | isbn=978-1-351-50020-3 | oclc=1069711332 }}</ref> and ''The Effects of Mass Communication'' (Joseph Klapper, 1960).<ref name="Klapper 1960">{{cite book | last=Klapper | first=Joseph | title=The effects of mass communication : an analysis of research on the effectiveness and limitations of mass media in influencing the opinions, values, and behavior of their audiences | url=https://archive.org/details/effectsofmasscom00klap | url-access=registration | publisher=Free Press | location=Glencoe (Illinois | year=1960 | isbn=978-0-02-917380-0 | oclc=813851873 }}</ref>


Influencer marketing is also important through ]. 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.<ref>{{Cite journal|last1=Martínez-López|first1=Francisco J.|last2=Anaya-Sánchez|first2=Rafael|last3=Fernández Giordano|first3=Marisel|last4=Lopez-Lopez|first4=David|date=2020-05-03|title=Behind influencer marketing: key marketing decisions and their effects on followers' responses|journal=Journal of Marketing Management|language=en|volume=36|issue=7–8|pages=579–607|doi=10.1080/0267257X.2020.1738525|s2cid=219078279|issn=0267-257X}}</ref> 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.<ref>{{Cite journal|last=Chae|first=Jiyoung|date=2018-04-03|title=Explaining Females' Envy Toward Social Media Influencers|journal=Media Psychology|volume=21|issue=2|pages=246–262|doi=10.1080/15213269.2017.1328312|s2cid=149094801|issn=1521-3269}}</ref> Influencer marketing is also important through ]. As ] 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.<ref>{{Cite journal|last1=Martínez-López|first1=Francisco J.|last2=Anaya-Sánchez|first2=Rafael|last3=Fernández Giordano|first3=Marisel|last4=Lopez-Lopez|first4=David|date=2020-05-03|title=Behind influencer marketing: key marketing decisions and their effects on followers' responses|journal=Journal of Marketing Management|language=en|volume=36|issue=7–8|pages=579–607|doi=10.1080/0267257X.2020.1738525|s2cid=219078279|issn=0267-257X}}</ref> 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.<ref>{{Cite journal|last=Chae|first=Jiyoung|date=2018-04-03|title=Explaining Females' Envy Toward Social Media Influencers|journal=Media Psychology|volume=21|issue=2|pages=246–262|doi=10.1080/15213269.2017.1328312|s2cid=149094801|issn=1521-3269}}</ref>

A majority of ] consider being an influencer as a "reputable career choice".<ref name=":3">{{Cite news |date=29 October 2024 |title=Too many people want to be social-media influencers |url=https://www.economist.com/business/2024/10/29/too-many-people-want-to-be-social-media-influencers |access-date=30 October 2024 |work=]}}</ref>


== Influencers == == Influencers ==
{{Excerpt|Influencer}}
There is a lack of consensus about what an influencer is. One writer defines them as "a range of third parties who exercise influence over the organization and its potential customers."<ref>Peck, Helen; Payne, Adrian; Christopher, Martin; Clark, Moira. Relationship Marketing: Strategy and Implementation, Butterworth-Heinemann, 1999.</ref> Another defines an influencer as a "third party who significantly shapes the customer's purchasing decision but may never be accountable for it."<ref name="autogenerated12" /> According to another, influencers are "well-connected, create an impact, have active minds, and are trendsetters".<ref name="keller12">Keller, Ed and Berry, Jon. ''The Influentials'', Free Press, 2003</ref> And just because an individual has many followers does not necessarily mean they have much influence over those individuals, only that they have many followers.<ref>{{cite book |last1= Cha |first1= Meeyoung |author-link1= Cha Meeyoung |last2= Haddadi |first2= Hamed |last3= Benevenuto |first3= Fabrício |last4= Gummadi |first4= Krishna P. |chapter= Measuring User Influence in Twitter: The Million Follower Fallacy |chapter-url= https://www.aaai.org/ocs/index.php/ICWSM/ICWSM10/paper/viewFile/1538/1826 |title= Proceedings of the Fourth International AAAI Conference on Weblogs and Social Media |publisher= Association for the Advancement of Artificial Intelligence |date= 2010 |pages= 10–17 |isbn= 9780688041076|oclc= 780600252 |access-date= 20 January 2020 }}</ref><ref>{{cite journal |url= https://hbr.org/2010/05/influence-and-twitter.html |title= On Twitter, Followers Don't Equal Influence |last= Berinato |first= Scott |date= 7 May 2010 |journal= Harvard Business Review |access-date= 20 January 2020 }}</ref> A 1% increase in influencer marketing spending can lead to a 0.5% increase in audience engagement.<ref>{{Cite web |last=Kirschman |first=Lauren |date=October 19, 2022 |title=These factors have the biggest impact on influencer marketing effectiveness |url=https://www.washington.edu/news/2022/10/19/these-factors-have-the-biggest-impact-on-influencer-marketing-effectiveness/}}</ref>

=== Identifying influencers ===
Market-research techniques can be used to identify influencers, using predefined criteria to determine the extent and type of influence.<ref name="keller12"/> "]s" get involved with organizations such as their communities, political movements, and charities. "Connected influencers" have large ]s. "Authoritative influencers" are trusted by others. "Active minds" have a diverse range of interests. "]s" are the ]s (or leavers) of markets. According to ], "The success of any kind of social epidemic is heavily dependent on the involvement of people with a particular and rare set of social gifts".<ref>{{Cite book|title=The Tipping Point: How Little Things Can Make A Big Difference|last=Gladwell|first=Malcolm|publisher=Little Brown|year=2000|isbn=0-316-31696-2|location=United States|url-access=registration|url=https://archive.org/details/tippingpointhowl00glad}}</ref> He has identified three types of influencers who are responsible for the "generation, communication and adoption" of messages:
* Connectors network with a variety of people, have a wide reach, and are essential to ].<ref name="Brown">{{Cite book|url=https://books.google.com/books?id=250VSJ5JwjIC|title=Influencer Marketing: Who Really Influences Your Customers?|last1=Brown|first1=Duncan|last2=Hayes|first2=Nick|date=2008-01-01|publisher=Elsevier/Butterworth-Heinemann|isbn=9780750686006|language=en}}</ref>
* Mavens use information, share it with others, and are insightful about trends.<ref>{{Cite web |last=Chowdhury |first=Manas |date=2023-10-14 |title=Top 17 Influencer Marketing Trends To Master In 2023 |url=https://www.seohorizon.com/digital/influencer-marketing-trends/ |access-date=2023-12-28 |website=www.seohorizon.com |language=en-US}}</ref><ref name="Brown"/>
* Salesmen are "charismatic persuaders".{{quote without source|date=January 2020}} Their influence is the tendency of others to imitate their behavior.

=== Influencer categories ===
Influencers are categorized by the number of followers they have on social media. They include ] from those with large followings, to niche content creators with a loyal following on social-media platforms such as YouTube, Instagram, Facebook, and Twitter.<ref>{{Cite journal|last1=Khamis|first1=Susie|last2=Ang |first2=Lawrence|last3=Welling|first3=Raymond|date=2017-04-03|title=Self-branding, 'micro-celebrity' and the rise of Social Media Influencers|journal=]|publisher=] |volume=8|issue=2|pages=191–208|doi=10.1080/19392397.2016.1218292|hdl=10453/98736|s2cid=59289264|issn=1939-2397|hdl-access=free}}</ref><ref name=":32">{{Cite journal|last=Kadekova & Holiencinova|date=September 24, 2018|title=Influencer Marketing as a Modern Phenomenon Creating a New Frontier of Virtual Opportunities |publisher=]|volume=9|issue=2 |pages=92}}</ref> Their followers range in number from ] to 1,000.<ref name=":4">{{Cite news|url=https://www.nytimes.com/2018/11/11/business/media/nanoinfluencers-instagram-influencers.html|title=Are You Ready for the Nanoinfluencers?|last=Maheshwari|first=Sapna|date=2018-11-11|work=The New York Times|access-date=2019-12-02|language=en-US|issn=0362-4331}}</ref>

* Nano-influencers – These are influencers that have a following ranging from 1k to 10k.
* Micro-influencers – These are the influencers with followers in the range of 10K to 100k
* Macro-influencers – These are the influencers with followers from the range of 100K to 500k
* Mega/Celeb-influencers – These are the influencers with more than 500k followers<ref>{{Cite web|url=https://www.businessinsider.com/brands-turning-to-micro-influencers-instead-of-instagram-stars-2019-4|title=Why brands are turning away from big Instagram influencers to work with people who have small followings instead|last=Hosie|first=Rachel|website=Business Insider|access-date=2019-12-02|date=2019-04-09}}</ref><ref name=":4" /><ref name=":32" /><ref>{{Cite web|url=https://www.kofluence.com/what-is-influencer-marketing-and-why-it-is-so-important-for-brands/ |title=What is Influencer Marketing and why it is important for Brands?|date=26 August 2022}}</ref><ref name=":1">{{Cite journal|last=Neff|first=Jack|date=October 1, 2018|title=CLEAN BREAK: J&J departs from conventional influencer marketing by signing on teens with small followings|journal=Advertising Age|volume=89|via=ProQuest}}</ref><ref>{{Cite web |date=2024-03-13 |title=Types of Influencers You Need to Know |url=https://viralmango.com/types-of-influencers/ |website=]}}</ref>

Businesses pursue people who aim to lessen their consumption of advertisements, and are willing to pay their influencers more. Targeting influencers is seen as increasing marketing's reach, counteracting a growing tendency by prospective customers to ignore marketing.<ref name="keller12" /><ref name=":8">{{Cite web|url=https://www.adweek.com/digital/how-social-media-is-changing-advertising-for-better-and-worse/|title=How Social Media Is Changing Advertising--for Better and Worse|website=Ad Week|date=12 December 2016 |language=en-US|access-date=2019-12-02}}</ref>

Marketing researchers Kapitan and Silvera find that influencer selection extends into product personality. This product and benefit matching is key. For a shampoo, it should use an influencer with good hair. Likewise, a flashy product may use bold colors to convey its brand. If an influencer is not flashy, they will clash with the brand. Matching an influencer with the product's purpose and mood is important.<ref name="Kapitan 553–567">{{Cite journal|last1=Kapitan|first1=Sommer|last2=Silvera|first2=David H.|date=2015-03-27|title=From digital media influencers to celebrity endorsers: attributions drive endorser effectiveness|journal=Marketing Letters|volume=27|issue=3|pages=553–567|doi=10.1007/s11002-015-9363-0|s2cid=143916226 |issn=0923-0645}}</ref>

=== B2B influencers ===
For most ] (B2C) campaigns, influencers may include everyday consumers who influence their audience. In high-value ] (B2B) transactions, influencers may be diverse and might include consultants, government-backed regulators, financiers, and user communities.

] analyst Michael Speyer notes that for small and medium-sized businesses, "IT sales are influenced by several parties, including peers, consultants, bloggers, and technology resellers."<ref>Speyer, Michael. Identifying IT Buyers’ Hidden Influencers: Finding And Nurturing Your Brand Presence Beyond Your Formal Channels, Forrester Research, 2007.</ref> According to Speyer, "Vendors need to identify and characterize influencers inside their market. This requires a comprehensive influencer identification program and the establishment of criteria for ranking influencer impact on the decision process."<ref>{{Cite book|last1=Brown|first1=Duncan|url=https://books.google.com/books?id=B9Lllu2COUoC&q=Speyer,+%22Vendors+need+to+identify+and+characterize+influencers+inside+their+market.+This+requires+a+comprehensive+influencer+identification+program+and+the+establishment+of+criteria+for+ranking+influencer+impact+on+the+decision+process.%22|title=Influencer Marketing: Who Really Influences Your Customers?|last2=Hayes|first2=Nick|date=2008|publisher=Routledge|isbn=978-0-7506-8600-6|language=en}}</ref> Influencers can play a variety of roles at different times in a decision-making process, an idea developed by Brown and Hayes.

=== Payment ===
Most influencers are paid before the start of a ] campaign, and others are paid after it ends.<ref>{{cite magazine|url=https://www.adweek.com/brand-marketing/how-to-craft-an-influencer-marketing-strategy-that-will-outperform-traditional-advertising/|title=How to Craft an Influencer Marketing Strategy That Will Outperform Traditional Advertising|first=Danielle|last=Wiley|date=12 December 2018|magazine=Adweek}}</ref> Consensus exists about how much an influencer should be paid. Compensation may vary by how many people an influencer can reach, the extent to which they will endorse the product (a ]), and the success of their past endorsements have performed.<ref>{{Cite web|url=https://digiday.com/marketing/still-much-wild-west-influencer-marketing-deals-now-focused-performance/|title='It's still very much the Wild West': Influencer marketing deals are now focused on performance|date=2019-10-31|website=Digiday|language=en-US|access-date=2019-12-02}}</ref><ref name=":2">{{Cite web|url=https://www.huffpost.com/entry/influencers-paid-post-fashion-beauty_l_5da4abb5e4b080c90e3ceae8|title=5 Influencers Share How Much They Get Paid Per #Ad Post|date=2019-10-21|website=HuffPost|access-date=2019-12-01}}</ref> Top-tier influencers and celebrities may receive a six- or seven-figure fee for a single social-media post.<ref>{{cite web|url=https://www.businessinsider.com/celebrities-influencers-who-make-the-most-money-instagram-2018-9|title=The 75 celebrities and influencers who make the most money per Instagram post, ranked|website=Business Insider|access-date=7 May 2019|date=2018-09-28}}</ref> In addition to (or in lieu of) a fee, payment may include free products or services.<ref name=":2" /><ref>{{Cite book|title=The Instagram Handbook|last=Landsverk|first=K.H.|publisher=Prime Head|year=2014|location=London|pages=105}}</ref> For influencers with smaller followings, free products or services may be the only form of compensation.<ref name=":4"/>


== Social media == == Social media ==
Online activity can play a central role in offline decision-making, allowing consumers to research products.<ref>{{cite web|url=http://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/the-consumer-decision-journey/|title=McKinsey: The Consumer Decision Journey|date=2013-03-13|publisher=Mckinseyquarterly.com|access-date=2013-04-29}}</ref> Social media have created new opportunities for marketers to expand their strategy beyond traditional mass-media channels.<ref name=":5">{{Cite journal|last=Sundermann|first=Gerrit|date=2019|title=Strategic Communication through Social Media Influencers: Current State of Research and Desiderata|journal=International Journal of Strategic Communication|volume=13|issue=4|pages=278–300|doi=10.1080/1553118X.2019.1618306|s2cid=203077360}}</ref> Many use influencers to increase the reach of their marketing messages.<ref name="keller12"/><ref name=":8" /> Online influencers who curate ] have become marketing assets because of their relationship with their followers.<ref name=":5" /><ref name=":32"/> Social-media influencers establish themselves as ] with their followers and may have persuasive strengths such as attractiveness, likeability, niche expertise, and perceived good taste.<ref name=":32" /><ref name=":5" /><ref name=":6">{{Cite journal|last=Ki|first=Chung-Wha|date=2019|title=The mechanism by which social media influencers persuade consumers: The role of consumers' desire to mimic|journal=Psychol Mark|volume=36|issue=10|pages=905–922|doi=10.1002/mar.21244|s2cid=201352512}}</ref> The interactive and personal nature of social media allows ]s to form between influencers and their followers, which impacts purchase behavior.<ref name=":5" /><ref name=":6" /><ref>{{Cite journal|last=Colliander|first=Jonas|date=March 2011|title=Following the Fashionable Friend: The Power of Social Media|journal=Journal of Advertising Research|volume=51|pages=313–320|doi=10.2501/JAR-51-1-313-320|s2cid=167920836}}</ref> Influencer marketing on social media reaches consumers who use ].<ref name=":32" /> Online activity can play a central role in offline decision-making, allowing consumers to research products.<ref>{{cite web|url=http://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/the-consumer-decision-journey/|title=McKinsey: The Consumer Decision Journey|date=2013-03-13|publisher=Mckinseyquarterly.com|access-date=2013-04-29}}</ref> Social media has created new opportunities for marketers to expand their strategy beyond traditional mass-media channels.<ref name=":5">{{Cite journal|last=Sundermann|first=Gerrit|date=2019|title=Strategic Communication through Social Media Influencers: Current State of Research and Desiderata|journal=International Journal of Strategic Communication|volume=13|issue=4|pages=278–300|doi=10.1080/1553118X.2019.1618306|s2cid=203077360}}</ref> Many use influencers to increase the reach of their marketing messages.<ref name="keller12">Keller, Ed and Berry, Jon. ''The Influentials'', Free Press, 2003</ref><ref name=":8">{{Cite web |date=12 December 2016 |title=How Social Media Is Changing Advertising--for Better and Worse |url=https://www.adweek.com/digital/how-social-media-is-changing-advertising-for-better-and-worse/ |access-date=2019-12-02 |website=Ad Week |language=en-US}}</ref> Online influencers who curate ] have become marketing assets because of their relationship with their followers.<ref name=":5" /><ref name=":32">{{Cite journal |last=Kadekova & Holiencinova |date=September 24, 2018 |title=Influencer Marketing as a Modern Phenomenon Creating a New Frontier of Virtual Opportunities |publisher=] |volume=9 |issue=2 |pages=92}}</ref> Social media influencers establish themselves as ] with their followers and may have persuasive strengths such as attractiveness, likeability, niche expertise, and perceived good taste.<ref name=":32" /><ref name=":5" /><ref name=":6">{{Cite journal|last=Ki|first=Chung-Wha|date=2019|title=The mechanism by which social media influencers persuade consumers: The role of consumers' desire to mimic|journal=Psychol Mark|volume=36|issue=10|pages=905–922|doi=10.1002/mar.21244|s2cid=201352512}}</ref> The interactive and personal nature of social media allows ]s to form between influencers and their followers, which impacts purchase behavior.<ref name=":5" /><ref name=":6" /><ref>{{Cite journal|last=Colliander|first=Jonas|date=March 2011|title=Following the Fashionable Friend: The Power of Social Media|journal=Journal of Advertising Research|volume=51|pages=313–320|doi=10.2501/JAR-51-1-313-320|s2cid=167920836}}</ref> Influencer marketing on social media reaches consumers who use ].<ref name=":32" />


Critics of an online-intensive approach say that by researching exclusively online, consumers can overlook input from other influential individuals.<ref name="autogenerated12" /> Early-2000s research suggested that 80 to 92 percent of influential consumer exchanges occurred face-to-face with ] (WOM), compared to seven to 10 percent in an online environment.<ref>{{Cite news|url=https://www.kellerfay.com/keller-fay-and-omd-study-finds-offline-word-of-mouth-more-positive-and-credible-than-online-buzz/|title=Keller Fay and OMD Study Finds Offline Word of Mouth More Positive and Credible than Online Buzz|work=Keller Fay Group|access-date=2017-10-06|archive-url=https://web.archive.org/web/20101124153619/https://www.kellerfay.com/keller-fay-and-omd-study-finds-offline-word-of-mouth-more-positive-and-credible-than-online-buzz/|archive-date=24 November 2010|language=en-US}}</ref><ref>{{cite journal|doi=10.1177/0893318905284763|title=What's All the Buzz about?|year=2006|last1=Carl|first1=Walter J.|journal=Management Communication Quarterly|volume=19|issue=4|pages=601–634|s2cid=145065557}}</ref><ref name="keller12"/><ref name=":7">{{cite web|url=https://go.forrester.com/blogs/09-09-30-using_social_media_to_create_and_amplify_offline_influence/|title=Using Social Media To Create And Amplify Offline Influence|last=Elliot|first=Nate|date=2009-09-30|access-date=2014-01-30}}</ref> Scholars and marketers distinguish WOM from electronic word-of-mouth (eWOM).<ref>{{Cite journal|last=Lee|first=Mira|date=Jan 2015|title=Electronic word of mouth (eWOM): How eWOM platforms influence consumer product judgement|journal=International Journal of Advertising|volume=28|doi=10.2501/S0265048709200709|s2cid=146353372}}</ref> Critics of an online-intensive approach say that by researching exclusively online, consumers can overlook input from other influential individuals.<ref name="autogenerated12" /> Early-2000s research suggested that 80 to 92 percent of influential consumer exchanges occurred face-to-face with ] (WOM), compared to seven to 10 percent in an online environment.<ref>{{Cite news|url=https://www.kellerfay.com/keller-fay-and-omd-study-finds-offline-word-of-mouth-more-positive-and-credible-than-online-buzz/|title=Keller Fay and OMD Study Finds Offline Word of Mouth More Positive and Credible than Online Buzz|work=Keller Fay Group|access-date=2017-10-06|archive-url=https://web.archive.org/web/20101124153619/https://www.kellerfay.com/keller-fay-and-omd-study-finds-offline-word-of-mouth-more-positive-and-credible-than-online-buzz/|archive-date=24 November 2010|language=en-US}}</ref><ref>{{cite journal|doi=10.1177/0893318905284763|title=What's All the Buzz about?|year=2006|last1=Carl|first1=Walter J.|journal=Management Communication Quarterly|volume=19|issue=4|pages=601–634|s2cid=145065557}}</ref><ref name="keller12"/><ref name=":7">{{cite web|url=https://go.forrester.com/blogs/09-09-30-using_social_media_to_create_and_amplify_offline_influence/|title=Using Social Media To Create And Amplify Offline Influence|last=Elliot|first=Nate|date=2009-09-30|access-date=2014-01-30}}</ref> Scholars and marketers distinguish WOM from electronic word-of-mouth (eWOM).<ref>{{Cite journal|last=Lee|first=Mira|date=Jan 2015|title=Electronic word of mouth (eWOM): How eWOM platforms influence consumer product judgement|journal=International Journal of Advertising|volume=28|doi=10.2501/S0265048709200709|s2cid=146353372}}</ref>

=== <span id="Notable Controversies"></span>2017 controversies ===
YouTuber ]'s antisemitic and racist comments led to cancelled deals with ] and a "widespread backlash".<ref>{{cite web|url=https://variety.com/2017/digital/news/youtube-cancels-pewdiepie-pulls-ads-death-to-jews-1201987810/|title=YouTube Cancels PewDiePie Show, Pulls Channel From Ad Program After His 'Death to All Jews' Stunt|last1=Spangler|first1=Todd|date=14 February 2017}}</ref><ref>{{cite news|url=https://www.theguardian.com/technology/2017/feb/13/pewdiepie-youtube-star-disney-antisemitic-videos|title=Disney severs ties with YouTube star PewDiePie over antisemitic videos|last1=Solon|first1=Olivia|date=14 February 2017|work=the Guardian|access-date=28 August 2018|language=en}}</ref><ref>{{cite news|url=https://www.cbsnews.com/news/pewdiepie-apologizes-for-using-n-word-during-live-stream/|title=PewDiePie apologizes for using n-word during live stream|date=13 September 2017|access-date=28 August 2018|agency=Associated Press|language=en}}</ref> Celebrity influencer ] and other media personalities failed to disclose their paid endorsements of the fraudulent ], as required by the ]. YouTuber ] posted a video containing a dead body in Japan's ], sparking a backlash and accusations of insensitivity.<ref>{{Cite web|url=https://www.mirror.co.uk/sport/boxing/logan-paul-suicide-forest-controversy-20842844|title=Logan Paul suicide forest controversy after YouTube star filmed dead body|last=Domin|first=Martin|date=2019-11-09|website=mirror|access-date=2019-12-02}}</ref>


===Use by governments=== ===Use by governments===
A wide range of global population, particularly generation Z, has been relying on social media influencers for all sorts of information. With millions of followers on their accounts, including ], ], ] and others, influencers have not just been working with brands, but also governments. Countries like Egypt and the United Arab Emirates have been using these influencers to spread a positive image of them and cover the bad press over human rights.<ref>{{cite web|url=https://www.theguardian.com/world/2021/jan/29/sugar-coated-propaganda-egypt-taps-into-power-instagram-influencers|title=Sugar-coated propaganda? Middle East taps into power of influencers|access-date=29 January 2020|website=The Guardian}}</ref> In Dubai, many such influencers have been working to promote the city's tourism by acquiring an expensive license or through agencies. It has become a full-time business in Dubai's post-oil economy. The Emirati authorities follow rigid plans and strategies to hit the correct spots. A strict check is maintained over the content of the influencers to make sure that everything is being depicted in a positive light. Dubai authorities also restrict these influencers from speaking anything against the regime, religion, or politics.<ref>{{cite web|url=https://www.theguardian.com/world/2021/apr/17/in-this-world-social-media-is-everything-how-dubai-became-the-planets-influencer-capital|title='In this world, social media is everything': how Dubai became the planet's influencer capital|accessdate=17 April 2021|website=The Guardian|date=17 April 2021 }}</ref> A report in October 2022 revealed that the influencers, who promote a glistening Dubai on their social media, sell sex to pay their lifestyle. These influencers are paid thousands of pounds a night. The amount also depends on the number of followers, where more followers means more money. Apart from cash, these influencers are paid with jewellery, flights, bags, etc. While ] is illegal in Dubai, it has always been there. Increase in influencers selling sex was believed to be due to the rise in number of ultra-rich expatriates in the Dubai, including the Russian oligarchs moving to the emirate to escape the US sanctions.<ref>{{cite news|url=https://www.thetimes.co.uk/article/the-dark-side-of-dubai-instagram-stars-sell-sex-to-fund-lavish-lifestyle-krs38kpnn|title=The dark side of Dubai: Instagram stars sell sex to fund lavish lifestyle|access-date=29 October 2022|website=The Times|last1=Dubai |first1=Louise Callaghan }}</ref> Given their impact, especially among younger people, influencers have also been enlisted by governments. Countries like ] and the ] have been using these influencers to spread a positive image of them and distract from human rights criticisms.<ref>{{cite web|url=https://www.theguardian.com/world/2021/jan/29/sugar-coated-propaganda-egypt-taps-into-power-instagram-influencers|title=Sugar-coated propaganda? Middle East taps into power of influencers|access-date=29 January 2020|website=The Guardian}}</ref> In ], many such influencers have been working to promote the city's tourism by acquiring an expensive license or through agencies. Emirati authorities tightly manage influencers to ensure that the country is depicted in a positive light. Dubai authorities also restrict these influencers from speaking about religion, politics or against the regime.<ref>{{cite web|url=https://www.theguardian.com/world/2021/apr/17/in-this-world-social-media-is-everything-how-dubai-became-the-planets-influencer-capital|title='In this world, social media is everything': how Dubai became the planet's influencer capital|accessdate=17 April 2021|website=The Guardian|date=17 April 2021 }}</ref> A report in October 2022 revealed that some influencers promoting Dubai engaged in prostitution, using their high-profile to find clients and charge higher rates. Although ] is illegal in Dubai, increasing numbers engage in the practice due to the rise in the number of ultra-rich expatriates in Dubai, including Russian oligarchs moving to the emirate to escape the US sanctions.<ref>{{cite news|url=https://www.thetimes.co.uk/article/the-dark-side-of-dubai-instagram-stars-sell-sex-to-fund-lavish-lifestyle-krs38kpnn|title=The dark side of Dubai: Instagram stars sell sex to fund lavish lifestyle|access-date=29 October 2022|website=The Times|last1=Dubai |first1=Louise Callaghan |date=October 29, 2022}}</ref>


==Applications== ==Applications==
Marketers use influencer marketing to establish credibility in a market, to create ] 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 ] value, impressions,<ref>{{cite journal|last1=Schwemmer|first1=Carsten|last2=Carsten|first2=Carsten|date=2018|title=Social Media Sellout: The Increasing Role of Product Promotion on YouTube|url=http://nbn-resolving.de/urn:nbn:de:bsz:352-2-jitz98thovx92|journal=Social Media and Society|volume=4|issue=3|pages=205630511878672|doi=10.1177/2056305118786720|doi-access=free}}</ref> and ].<ref name="autogenerated12">Brown, Duncan and Hayes, Nick. Influencer Marketing: Who really influences your customers?, Butterworth-Heinemann, 2008.</ref> Marketers use influencer marketing to establish credibility in a market, to create ] 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 ] value, impressions,<ref>{{cite journal|last1=Schwemmer|first1=Carsten|last2=Carsten|first2=Carsten|date=2018|title=Social Media Sellout: The Increasing Role of Product Promotion on YouTube|url=http://nbn-resolving.de/urn:nbn:de:bsz:352-2-jitz98thovx92|journal=Social Media and Society|volume=4|issue=3|pages=205630511878672|doi=10.1177/2056305118786720|doi-access=free}}</ref> and ].<ref name="autogenerated12">Brown, Duncan and Hayes, Nick. Influencer Marketing: Who really influences your customers?, Butterworth-Heinemann, 2008.</ref> Globally, 86% of brands planned to use influencer marketing in 2024.<ref name=":3" />


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.<ref>{{cite journal|last1=Lim|first1=Xin Jean|last2=Mohd Radzol|first2=Aifa Rozaini bt|last3=Cheah|first3=Jun-Hwa (Jacky)|last4=Wong|first4=Mun Wai|year=2017|title=The Impact of Social Media Influencers on Purchase Intention and the Mediation Effect of Customer Attitude|journal=Asian Journal of Business Research|volume=7|issue=2|doi=10.14707/ajbr.170035|doi-access=free}}</ref><ref name=":02">{{Cite journal|last1=Schouten|first1=Alexander P.|last2=Janssen|first2=Loes|last3=Verspaget|first3=Maegan|date=2020-02-17|title=Celebrity vs. Influencer endorsements in advertising: the role of identification, credibility, and Product-Endorser fit|journal=International Journal of Advertising|volume=39|issue=2|pages=258–281|doi=10.1080/02650487.2019.1634898|issn=0265-0487|doi-access=free}}</ref> 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.<ref>{{Cite journal|last1=Freberg|first1=Karen|last2=Graham|first2=Kristin|last3=McGaughey|first3=Karen|last4=Freberg|first4=Laura A.|date=March 2011|title=Who are the social media influencers? A study of public perceptions of personality|journal=Public Relations Review|language=en|volume=37|issue=1|pages=90–92|doi=10.1016/j.pubrev.2010.11.001|s2cid=93450895 }}</ref><ref name=":02" /> 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.<ref>{{cite journal|last1=Lim|first1=Xin Jean|last2=Mohd Radzol|first2=Aifa Rozaini bt|last3=Cheah|first3=Jun-Hwa (Jacky)|last4=Wong|first4=Mun Wai|year=2017|title=The Impact of Social Media Influencers on Purchase Intention and the Mediation Effect of Customer Attitude|journal=Asian Journal of Business Research|volume=7|issue=2|doi=10.14707/ajbr.170035|doi-access=free}}</ref><ref name=":02">{{Cite journal|last1=Schouten|first1=Alexander P.|last2=Janssen|first2=Loes|last3=Verspaget|first3=Maegan|date=2020-02-17|title=Celebrity vs. Influencer endorsements in advertising: the role of identification, credibility, and Product-Endorser fit|journal=International Journal of Advertising|volume=39|issue=2|pages=258–281|doi=10.1080/02650487.2019.1634898|issn=0265-0487|doi-access=free}}</ref> 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.<ref>{{Cite journal|last1=Freberg|first1=Karen|last2=Graham|first2=Kristin|last3=McGaughey|first3=Karen|last4=Freberg|first4=Laura A.|date=March 2011|title=Who are the social media influencers? A study of public perceptions of personality|journal=Public Relations Review|language=en|volume=37|issue=1|pages=90–92|doi=10.1016/j.pubrev.2010.11.001|s2cid=93450895 }}</ref><ref name=":02" />
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In 2017, the FTC sent more than 90 educational letters to celebrity and athlete influencers with the reminder of the obligation to clearly disclose business relationships while sponsoring and promoting products.<ref>{{Cite press release|url=https://www.ftc.gov/news-events/press-releases/2017/04/ftc-staff-reminds-influencers-brands-clearly-disclose|title=FTC Staff Reminds Influencers and Brands to Clearly Disclose Relationship|date=2017-04-18|website=Federal Trade Commission|language=en|access-date=2019-07-18}}</ref> The same year, in response to YouTubers Trevor Martin and Thomas Cassell deceptively endorsing an online gambling site they owned, the FTC took three separate actions to catch the attention of influencers. By using law enforcement, warning letters, and updating the Endorsement Guidelines, the FTC provided influencers with endorsement questions or involved in misleading endorsements and disclosures with clear procedures of how to follow the laws.<ref>{{Cite web|date=2017-09-07|title=Three FTC actions of interest to influencers|url=https://www.ftc.gov/news-events/blogs/business-blog/2017/09/three-ftc-actions-interest-influencers|access-date=2020-12-01|website=Federal Trade Commission|language=en}}</ref> In 2017, the FTC sent more than 90 educational letters to celebrity and athlete influencers with the reminder of the obligation to clearly disclose business relationships while sponsoring and promoting products.<ref>{{Cite press release|url=https://www.ftc.gov/news-events/press-releases/2017/04/ftc-staff-reminds-influencers-brands-clearly-disclose|title=FTC Staff Reminds Influencers and Brands to Clearly Disclose Relationship|date=2017-04-18|website=Federal Trade Commission|language=en|access-date=2019-07-18}}</ref> The same year, in response to YouTubers Trevor Martin and Thomas Cassell deceptively endorsing an online gambling site they owned, the FTC took three separate actions to catch the attention of influencers. By using law enforcement, warning letters, and updating the Endorsement Guidelines, the FTC provided influencers with endorsement questions or involved in misleading endorsements and disclosures with clear procedures of how to follow the laws.<ref>{{Cite web|date=2017-09-07|title=Three FTC actions of interest to influencers|url=https://www.ftc.gov/news-events/blogs/business-blog/2017/09/three-ftc-actions-interest-influencers|access-date=2020-12-01|website=Federal Trade Commission|language=en}}</ref>


Media-regulating bodies in other countries – such as Australia – followed the FTC in creating influencer-marketing guidelines.<ref>{{Cite web|date=18 June 2018|title=Clearly Distinguishable Advertising Best Practice Guide|url=http://aana.com.au/content/uploads/2017/01/AANA_Distinguishable-Advertising-Best-Practice-Guideline__Final.pdf|website=AANA}}</ref> The United Kingdom's ] adopted similar laws and tips for influencers to follow.<ref name=":12" /> Media-regulating bodies in other countries – such as Australia – followed the FTC in creating influencer-marketing guidelines.<ref>{{Cite web|date=18 June 2018|title=Clearly Distinguishable Advertising Best Practice Guide|url=http://aana.com.au/content/uploads/2017/01/AANA_Distinguishable-Advertising-Best-Practice-Guideline__Final.pdf|website=AANA}}</ref>


The United Kingdom's ] and ] adopted similar laws and tips for influencers to follow.<ref name=":12" /> The UK's ] have also warned "finfluencers" (influencers in the financial realm) of legal consequences for failing to include the kind of risk warnings required for financial and investment products.<ref>{{Cite web |date=2024-03-25 |title=FCA warns firms and finfluencers to keep their social media ads lawful |url=https://www.fca.org.uk/news/press-releases/fca-warns-firms-and-finfluencers-keep-their-social-media-ads-lawful |access-date=2024-10-10 |website=FCA |language=en}}</ref>
=== Branded content on social media platforms ===


==== Facebook and Instagram ==== === Branded content ===
] and ] have a set of brand content policies for influencer marketing and endorsements. Branded content may only be posted through Instagram and Facebook, and require the business relationships between influencers and endorsers to be tagged when promoting branded content. The branded tool provided in the business layout of Facebook and Instagram is to be used whenever promoting products and endorsers.<ref>{{Cite web|title=Branded Content on Instagram {{!}} Instagram Help Center|url=https://help.instagram.com/116947042301556|access-date=2020-12-01|website=help.instagram.com}}</ref><ref>{{Cite web|title=Facebook Branded Content Policies|url=https://www.facebook.com/policies/brandedcontent/|access-date=2020-12-01|website=www.facebook.com}}</ref> ] and ] have a set of brand content policies for influencer marketing and endorsements. Branded content may only be posted through Instagram and Facebook, and require the business relationships between influencers and endorsers to be tagged when promoting branded content. The branded tool provided in the business layout of Facebook and Instagram is to be used whenever promoting products and endorsers.<ref>{{Cite web|title=Branded Content on Instagram {{!}} Instagram Help Center|url=https://help.instagram.com/116947042301556|access-date=2020-12-01|website=help.instagram.com}}</ref><ref>{{Cite web|title=Facebook Branded Content Policies|url=https://www.facebook.com/policies/brandedcontent/|access-date=2020-12-01|website=www.facebook.com}}</ref>


==== YouTube ====
As of August 2020, ] has updated the branded content policies. YouTube and ] ad policies require influencers to check a box titled ''paid promotion'' when publishing sponsored videos and provides instructions on how to set it up. The policies require disclosure messages for the viewers to indicate that the content is promoted.<ref>{{Cite web|title=Add paid product placements, sponsorships & endorsements - YouTube Help|url=https://support.google.com/youtube/answer/154235?hl=en|access-date=2020-12-01|website=support.google.com}}</ref> As of August 2020, ] has updated the branded content policies. YouTube and ] ad policies require influencers to check a box titled ''paid promotion'' when publishing sponsored videos and provides instructions on how to set it up. The policies require disclosure messages for the viewers to indicate that the content is promoted.<ref>{{Cite web|title=Add paid product placements, sponsorships & endorsements - YouTube Help|url=https://support.google.com/youtube/answer/154235?hl=en|access-date=2020-12-01|website=support.google.com}}</ref>


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==References== ==References==

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Type of social media marketing

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Chiara Ferragni is a fashion influencer and blogger known for her sponsored fashion posts.

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. 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. 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. Influencer content may be framed as testimonial advertising, according to the Federal Trade Commission in the United States. The FTC started enforcing this on a large scale in 2016, sending letters to several companies and influencers who had failed to disclosed sponsored content. Many Instagram influencers started using #ad in response and feared that this would affect their income. However, fans increased their engagement after disclosure, being happy that they were landing such deals. This success led to some creators creating their own product lines in 2017. Some influencers fake sponsored content to grain credibility and promote themselves. Backlash to sponsored content became more prominent in mid-2018, leading to many influencers to focus instead on authenticity.

Social influence

Most discussions of social influence focus on social persuasion and compliance. 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. 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) and The Effects of Mass Communication (Joseph Klapper, 1960).

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. 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.

A majority of Gen Z Americans consider being an influencer as a "reputable career choice".

Influencers

This section is an excerpt from Influencer.
In 2024, Rolling Stone listed MrBeast, the YouTuber with the most subscribers, as the third most influential content creator behind Rhett & Link and Kai Cenat. According to Insider, in 2021, 70% of survey respondents at the time had a positive view of the influencer, who strongly appeals to younger audiences.

An influencer (also known as a social media influencer or online influencer) is an individual who builds a grassroots online presence through engaging content like photos, videos, and updates, using direct audience interaction to establish authenticity, expertise, and appeal, and standing apart from traditional celebrities by growing their platform through social media rather than pre-existing fame. The modern referent of the term is commonly a paid role in which a business entity pays for the social media influence-for-hire activity to promote its products and services, known as influencer marketing. Types of influencers include fashion influencer, travel influencer and virtual influencer, and involve content creators and streamers.

Some influencers are associated with specific social media apps such as TikTok influencers, Instagram influencer, or Pinterest influencer, and many are also considered internet celebrities. As of 2023, Instagram is the social media platform on which businesses spend the most advertising dollars towards marketing with influencers. However, influencers can exert their influence on any type of social media network. Thus, Instagram's leadership in the influencer marketing space has been under assault by platforms such as LinkedIn, TikTok, Snapchat and Roblox.

Social media

Online activity can play a central role in offline decision-making, allowing consumers to research products. Social media has created new opportunities for marketers to expand their strategy beyond traditional mass-media channels. Many use influencers to increase the reach of their marketing messages. Online influencers who curate personal brands have become marketing assets because of their relationship with their followers. Social media influencers establish themselves as opinion leaders with their followers and may have persuasive strengths such as attractiveness, likeability, niche expertise, and perceived good taste. The interactive and personal nature of social media allows parasocial relationships to form between influencers and their followers, which impacts purchase behavior. Influencer marketing on social media reaches consumers who use ad-blockers.

Critics of an online-intensive approach say that by researching exclusively online, consumers can overlook input from other influential individuals. Early-2000s research suggested that 80 to 92 percent of influential consumer exchanges occurred face-to-face with word-of-mouth (WOM), compared to seven to 10 percent in an online environment. Scholars and marketers distinguish WOM from electronic word-of-mouth (eWOM).

Use by governments

Given their impact, especially among younger people, influencers have also been enlisted by governments. Countries like Egypt and the United Arab Emirates have been using these influencers to spread a positive image of them and distract from human rights criticisms. In Dubai, many such influencers have been working to promote the city's tourism by acquiring an expensive license or through agencies. Emirati authorities tightly manage influencers to ensure that the country is depicted in a positive light. Dubai authorities also restrict these influencers from speaking about religion, politics or against the regime. A report in October 2022 revealed that some influencers promoting Dubai engaged in prostitution, using their high-profile to find clients and charge higher rates. Although prostitution is illegal in Dubai, increasing numbers engage in the practice due to the rise in the number of ultra-rich expatriates in Dubai, including Russian oligarchs moving to the emirate to escape the US sanctions.

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, and cost per action. Globally, 86% of brands planned to use influencer marketing in 2024.

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. 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.

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.

Regulation

In the United States, the Federal Trade Commission (FTC) treats influencer marketing as a form of paid endorsement. It is governed by the rules for native advertising, which include compliance with established truth-in-advertising standards and disclosure by endorsers (influencers) and is known as the Endorsement Guides. The FTC compiled an easy-to-read guide on disclosure for influencers, specifying rules and tips on how to make good disclosures on social media. The guidelines include reminders of disclosing sponsored products in easily visible places so it is hard to miss, using easy-to-understand language, and giving honest reviews about sponsored products.

In 2017, the FTC sent more than 90 educational letters to celebrity and athlete influencers with the reminder of the obligation to clearly disclose business relationships while sponsoring and promoting products. The same year, in response to YouTubers Trevor Martin and Thomas Cassell deceptively endorsing an online gambling site they owned, the FTC took three separate actions to catch the attention of influencers. By using law enforcement, warning letters, and updating the Endorsement Guidelines, the FTC provided influencers with endorsement questions or involved in misleading endorsements and disclosures with clear procedures of how to follow the laws.

Media-regulating bodies in other countries – such as Australia – followed the FTC in creating influencer-marketing guidelines.

The United Kingdom's Competition and Markets Authority and Advertising Standards Authority adopted similar laws and tips for influencers to follow. The UK's Financial Conduct Authority have also warned "finfluencers" (influencers in the financial realm) of legal consequences for failing to include the kind of risk warnings required for financial and investment products.

Branded content

Facebook and Instagram have a set of brand content policies for influencer marketing and endorsements. Branded content may only be posted through Instagram and Facebook, and require the business relationships between influencers and endorsers to be tagged when promoting branded content. The branded tool provided in the business layout of Facebook and Instagram is to be used whenever promoting products and endorsers.

As of August 2020, YouTube has updated the branded content policies. YouTube and Google's ad policies require influencers to check a box titled paid promotion when publishing sponsored videos and provides instructions on how to set it up. The policies require disclosure messages for the viewers to indicate that the content is promoted.

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. Instagram has failed to shut down all such websites. 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.

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". 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. Twenty-four percent of influencers were found to have abnormal growth patterns in another study, indicating that they had manipulated their likes or followers.

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.

Virtual influencers

Virtual influencers are virtual characters, intentionally designed by 3D artists to look like real people in real situations. Although most of the characters can be easily identified as computer graphics, some are very realistic and can fool users. 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. Lil Miquela was a realistic virtual influencer which prompted curiosity and speculation until it was learned that she was created by advertisers.

A study published in 2022 indicate that over half of Chileans have never purchased products recommended by influencers.

See also

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