BY: Savanna Pruitt
Have you ever purchased a product because your favorite YouTuber posted an entire vlog series all about how it changed their life? If so, your favorite YouTuber is an influencer, and your purchase was driven by influencer marketing.
According to CommPRO, an influencer is “someone who has influence over others’ buying decisions.” Today, the term is most commonly applied to social media personalities who work with companies to generate revenue and increase brand awareness. The average influencer works to build their reputation and forge a genuine connection with their audience. In turn, the audience trusts or admires the influencer and is willing to make purchases based on that influencer’s recommendations. The audience is turned on to new products, the brands the influencer suggests see an increase in revenue and the influencer gets a cut. Everyone wins.
This sector of the marketing industry is rapidly on the rise and appears to be here for the long haul. Influencer Marketing Hub reports, “From a mere $1.7 billion in 2016, influencer marketing is estimated to have grown to have a market size of $9.7 billion in 2020.” That’s nearly a 500% increase in just four short years. Why have influencers become such a huge marketing tool, though? It’s simple: They have demonstrable power. According to Invesp, 72% of customers trust a business more after they see it recommended by an influencer, and a shocking 92% of consumers trust the opinions of influencers over traditional business ads or celebrity endorsements.
With the rise of influencer marketing comes a question of ethics. Is it right for an influencer to promote a product to their audience without disclosing they’re being paid to do so? The general consensus is that it isn’t, and there are actually Federal Trade Commission guidelines in place now to prevent social media users from being unknowingly convinced to make purchases that benefit influencers.
For example, influencers are directed to make it very clear when they are endorsing a product in exchange for payment from the brand. This includes situations where the influencer has been given free or discounted items. Additionally, influencers are to use simple language to make it clear to their audience that they are being paid to promote a brand or service. The FTC also states that influencers shouldn’t post about an experience with a product they haven’t actually tried or make any claims about a product that cannot be backed up with proof from the advertiser.
Interested in learning more? Here’s a list of 2020’s top-paid social media influencers.
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