Study reveals hidden costs of sponsored content for influencers
Briefly

A study published in Management Science reveals that influencer-sponsored posts can negatively impact their subscriber counts, creating a 'reputation-burning effect.' Analysis of thousands of YouTube videos from beauty and style influencers shows a 0.19% average decline in subscribers after posting sponsored content, particularly affecting larger influencers. The perception of trustworthiness and authenticity is critical for successful influencer marketing. Strategies to mitigate these effects include aligning sponsored content with an influencer's style and focusing on partnerships with smaller brands, which tend to receive less backlash.
If consumers don't perceive influencers as trustworthy and authentic, much of their marketing efforts may not lead to the desired outcomes.
Our work highlights that bigger isn't always better when it comes to choosing influencers. Brands need to think beyond follower counts and consider audience engagement.
Read at Phys
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