However, I think that this report will contribute greatly to my future career since influencer marketing will continue to be an essential advertising channel for brands, while traditional advertising will continue losing its relevance. endobj Another challenge in the usage of AI tools in influencer marketing is the issue of creativity. endobj Hence, research reports that advertisers face the need to create a sense of word of mouth recommendations since those are more valuable to consumers. I realised that I had to take a step back, have a break and return to the project as soon as possible. When conducting a literature review, I tried to find empirical evidence and theories that would clearly explain why people trust influencers more than other advertisement means and how this can be used by brands. FTC requires any association between an influencer and a brand to be clearly disclosed in a post. 196-213. Jin, S.V., Muqaddam, A. and Ryu, E. (2019) Instafamous and social media influencer marketing, Marketing Intelligence & Planning, 37(5), pp. According to Augure (2015) 85% of the U.S. companies are currently implementing influencer marketing (2016) Advertising as a cue to consume: a systematic review and meta-analysis of the effects of acute exposure to unhealthy food and nonalcoholic beverage advertising on intake in children and adults, American Journal of Clinical Nutrition, 103(2), pp. As a result, influencers and brands are encouraged to create only specific types of contentthose that will bring them the most traction. Developing an impressive dissertation is an important step in receiving a degree and meeting all your academic goals. Either way, influencers have become an effective tool for promoting a brand. application/pdf Simply defined, influencer marketing means the engagement of people who have gathered a substantial following through their online social media accounts and who are willing to work with brands to promote new products. In the environment of social media websites, SET helps explain the nature of transactions between the network of friends since these communication means provide multiple benefits. 58-73. We acknowledge Aboriginal and Torres Strait Islander peoples as the First Australians and Traditional Custodians of the lands where we live, learn, and work. Ki, C. W. and Kim, Y. K. (2019) The mechanisms by which social media influencers persuade consumers: the role of consumers desire to mimic, Psychology of Marketing, 36, pp. B. Hence, although there are some theories developed to explain the specifics of influencer marketing, they can be further supported and tested with empirical evidence. Mitigating Operational Risk In Healthcare With High-Performance Pharmacies, What Companies Should Know About Route Optimization Technology, How Enterprises Can Regulate The Development Of Generative AI, Quantifying Multi-Cloud Complexity Using Cloud Entropy, Cross-Industry Synergy In Electronics, Automotive And Aerospace. Haenlein and Libai (2017) argue that micro-influencers generate more conversions, and 80% of consumers are willing to follow their recommendations. Therefore, it is essential to track and analyze the impact of an influencer's content on sales. Unsurprisingly, industry surveys suggest that those most likely to want to become social media influencers are younger people, lured by the apparent glamour of thelifestyle and potentially huge payments. 2020-02-10T07:14:29-08:00 <>stream Temperature-Sensitive Vending Machine, Sales Portfolio: A Bank Mortgage and Marketers, Business Marketing: Lost Accounts, Rock Cantino and Ron Wilson Cases, People look for recommendations from others, Consumer funnel and variability of influencers impact based on different conditions, Association of National Advertisers (2018), Different types of influencers based on size, Social media word of mouth (sWOM) and purchasing intention, Visual-Congruence-induced Social Influence (VCSI), Advertisers anticipate better consumer engagement with influencer marketing, Traditional ads no longer have a significant impact on potential buyers, 82% of Americans ask their friends and family for recommendations, Product from trusted and not trusted sources is perceived differently, There are notable examples of failed influencer marketing campaigns, Consumers are attracted to relatable influencers. (2020) Ordinary celebrities related criteria to harvest fame and influence on social media, Journal of Research in Interactive Marketing, 14(2), pp. Table 2 summarises the main theories that were presented in the explained studies, and the following paragraphs will explain each concept in detail. In the case of using influencer marketing as a way of increasing brand awareness, multiple researchers prove the effectiveness of this approach, both theoretical and empirically. EI[.mt~-K9&UFr3aXJ$Gtdpdt3g_~9ob/_( 47 0 obj 567-579. endobj These theories are based on the notion that in social interactions, people look for recommendations from a source they trust and by developing a relationship with an instafamous person, they tend to mimic the behaviour of the influencer. To be a successful influencer, all Hayley Berlingeri needs is her face, her family and her phone. 492 0 obj Singh and Banerjee (2019), celebrity worship is explained as a result of communication channels and publicity. The majority of the examined studies claim that they are the only research on a specific element of influencer marketing. To avoid any potential legal issues down the road, both businesses and creators must understand the risks of using AI tools in influencer marketing and know how to protect themselves. Opresnik, Kotler and Hollensen (2017) promote the concept that the size of the company should define the type of influencer selected for promotion. 71-90. Appligent AppendPDF Pro 6.3 In terms of influence marketing, in particular, the fit of an influencer with an overall perception of the brand appears to be the central matter for consideration with practising managers. "People would send little outfits for them and I'd dress them and mostly send the content back to them for them to use on their socials," she said. The Creator Marketplace Quickly find and hire influencers; IZEA Flex Scale your influencer marketing efforts; Managed Services Hire a full-service team to take care of everything; Resources. 5575. 491 0 obj You may opt-out by. Six huge, pumped up bodyguards in black attire are escorting a 26-year-old to his suite after a meet and greet session with his fans at a . Notably, Lin, Spence and Lachlan (2016) focus primarily on the attachment mechanism that guides the influencer-follower relationship. 553567. endobj <> "The whole idea of having an influencer is that they are meant to be objective, they are meant to be regular people.". As the U.S. Securities and Exchange Commission and other local bodies are tightening the rules around paid social media promotions, there is a risk of serious scrutiny in case the AI-generated content violates any rules that remain unchecked. Many of these tools are designed to simplify the content creation process, streamline collaboration management and boost the overall ROI of marketing campaigns. <>5]/P 46 0 R/Pg 63 0 R/S/Link>> Influencer Marketing Resources Become an influencer marketing expert; Our work Case studies and sample collabs The objectives of this study were to determine if it is feasible to enter the market of Finland, Moscow and Saint Petersburg and are there any possibilities for future development in those markets. Spending on this new marketing tactic saw a steep rise in the past few years, with prediction that expenditure on online video and influencer marketing will outperform other tactics in 2022 (Clapp Citation 2021).This digital advertising tactic relies on popular social media users who have built a significant and . (2020, p. 106443), advertisers use influencers to garner engagement from their target consumers in a new marketing strategy known as Influencer marketing. Despite the increasing popularity of influencer marketing, there are both successful and unsuccessful examples of these types of campaigns. AppendPDF Pro 6.3 Linux 64 bit Aug 30 2019 Library 15.0.4 7-29. Petersen, Kushwaha, and Kumar (2015) remark that consumer financial opportunities are in clear correlation with the cultural . This will also help policymakers design effective guidelines for influencer advertisements that will protect consumers from unfair practices and the potentially harmful effect of these ad campaigns. (2020), this thesis aims to contribute by adding knowledge to this field (Mediakix, 2021). As of July 2021, the number of worldwide social media users reached 4.48 billion, compared to 0.97 billion in 2010 (Dean . professional specifically for you? Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Now, she has a talent manager and receives a steady stream of products and services to endorse. The thesis was conducted Ammattikorkeakoulujen opinnytetyt ja julkaisut, https://urn.fi/URN:NBN:fi:amk-202205169450, Swedish market entry strategy utilizing Internet marketing: the utilization of Internet marketing in a cost effective and efficient way to market a virtual world, Tammi Jewellery : Market research for entering the Hong Kong market; market channels and brand positioning in the market, Market Analysis of Finnish Market and Part of Russian Market (Moscow and Saint Petersburg). Moreover, some social media platforms, for example, YouTube, included the necessity to disclose sponsorship as part of their user agreement. 498 0 obj However, most of the examined studies conclude that in the majority of cases, influencer marketing is more beneficial and prominent when compared to traditional advertising methods. Florenthal, B. Need a custom essay sample written from scratch by Measuring sales in influencer marketing is a crucial factor in determining the success of a campaign. https://ivypanda.com/essays/influencer-marketing-and-applicable-theories/, IvyPanda. Creators no longer have to spend hours researching and brainstorming ideas as several simple prompts can suggest captions, campaign ideas and even visual ideas of fairly good quality, albeit not very tailored or specific. Appligent AppendPDF Pro 6.3 288-290. endobj Hu, H., Zhang, D. and Wang, C. (2019) Impact of social media influencers endorsement on application adoption: a trust transfer perspective, Social Behavior and Personality, 47(11), pp. 6 0 obj Influencer marketing affects consumers and their desire to purchase something in a different manner than traditional marketing. In terms of academic research, there are many factors in the influencer-follower model that require further clarification. 188-213. According to Johansen and Guldvik (2017), 14% of the respondents cannot recall the last advertisement they saw, which is consistent with the idea of consumer blindness to ads. Topic 1: Impact of product packaging on organisational sales: A case study of the UK retail sector Topic 2: Impact of E-marketing on consumer purchase decisions: Case of the UK luxury industry Topic 3: Analysing the customer-centric marketing strategies in attaining competitive advantage for the firm and sustaining business success This includes a brief overview of marketing tactics that preceded influencer marketing, such as word-of-mouth (WOM) and celebrity endorsements. Overall, this paper is a narrative review of the literature on the topic of influencer marketing and consumer decision making. 499 0 obj The analysis and critical discussions of the findings provide multiple implications for practitioners since the current research into influencer marketing has developed and tested several theories explaining the motivation of consumers and the interactions with the followers. "Influencer Marketing and Applicable Theories." Influencer marketing became a must and an essential element in advertising. endobj endobj endobj Hence, a suggestion for practitioners is to approach influencer marketing with caution and use sales figures and other metrics to ensure that the campaign is reaching the expected results. So-called ordinary celebrities or people who have gained their following through social media platforms can extort more influence on their followers. Al-Emadi and Yahia (2020) examine the issue of becoming an influencer and influential marketing development. It contains thousands of paper examples on a wide variety of topics, all donated by helpful students. But this shift to influencer marketing is not without risk. The key theme explored by the authors is the Theory of Planned Behavior (TPB), which suggests that the attitudes towards an influencer affect the perception of a brand. Managerial implications: Influencer marketing is a better brand building tool than paid social media marketing. Contemporary marketers are focusing on ads that have higher ROI, more credible and believable, less interrupting than regular ads, arbitrage opportunities, new technology, changing markets, and predictions (Johansen and Guldvik, 2017, p. 3). <>480 0 R]/P 555 0 R/Pg 541 0 R/S/Link>> This dissertation explores the topic Consumer responses to influencer marketing on Instagram. The estimated number of users in July 2020 was over 689 million globally, and App Annie. Hence, academics should focus on further examining the discussed field and empirically providing that by using influencer marketing, firms can generate more profits from sales or the opposite. The aim of this study is to analyze the phenomenon of influencer marketing, its rise and its effects on consumer behaviour and brand perception. While this may become a problem in the future, currently, influencer marketing remains to be extremely efficient. Nytetn aineisto, joilla on samankaltaisia nimekkeit, tekijit tai asiasanoja. However, consumer engagement with posts remains low. "Influencer Marketing and Applicable Theories." You are free to use it for research and reference purposes in order to write your own paper; however, you Huges, Swaminathan and Brooks (2019) state that influencer posts are effective in improving the WOM of the brand. Based on SAM, people tend to prefer to be around those who are similar to them (Argyris et al., 2020). "I was a full-time teacher and junior school coordinating principal and I make a lot more money doing this part time at home with my family than I did in my full-time role," she said. The examined theories provide a framework for such education since students should understand not only how to interact with influencers but how the followers perceive this relationship. 11 Changyu Street, Fangshan District, Beijing, China *Corresponding author.Email: sl0061@bravemail.uncp.edu ABSTRACT With the development of social media, influencer marketing has become a new and efficient brand marketing strategy endobj Hence they usually do not have management and other personnel or familiarity with traditional advertising methods. Influencer marketing is now considered a key part of brands' promotional strategies Analysts estimate the value of influencer advertising at about $25 billion globally But it comes with risks as . Herdescriptions of busy days as a mother-of-four in Adelaide have gained her a loyal following on Instagram. They, in essence, work by generating output based on the already existing material. 109-122. This report will examine the basics of influencer marketing, how it emerged and developed and highlight the recent research on this topic. According to Childers, Lemon and Hoy (2019), approximately 82% of adult Americans ask for a recommendation from their friends or family when making a purchasing decision. Instagram is the fastest growing photo sharing social Some of the specific topics that were uncovered as part of this review include the various theories that help explain why people engage with the content that these social media personalities post and why the recommendations of the latter matter, such as the word of mouth theory, social exchange theory, similarity attraction model, the theory of visual congruence. Next, the target desires to comply with the recommendation, which leads to the final stage the completion of an action (Ki and Kim, 2019). This thesis focuses on micro-influencers (between 10 and 100 thousand followers) and their effect on Millennial's consumer behavior. 503 0 obj Hence, I will be able to use the gained knowledge in practice when managing the campaigns of my company and collaborating with influencers. 58 0 obj endobj Al-Emadi, F. A. and Yahia, I. Laurie, S., Mortimer, K. and Beard, F. (2019) Has advertising lost its meaning? Maters Thesis. "In my own personal friend group and a lot of them are content creators we are doing a lot of vetting and sending each other images or captions or whatever it may be to be like, 'Is this OK?'". For example, who will have the ownership rights to the content generated through AI tools, the brand or the creator? Another idea explored in multiple narrative studies and empirical researchers is word of mouth (WOM) marketing and opinion leadership. Hu, Zhang and Wang (2019) cite different examples of how this phenomenon impacts consumers and their decision. The visual element has become an integral part of this marketing strategy. endobj Shahid and Farooqi (2019) used structural equation modelling to examine the brand attachment of consumers, more specifically Indian citizens, who purchase luxury goods. Mr Singh said large companies were reportedly spending up to 10 per cent of their advertising budgets on thatform of marketing, with smaller,usually newer, brands opting to use it almost exclusively. Blogs created by people to share information have rapidly become a credible marketing tool (Mohit, 2011). "Tertiary scrutiny of what you can find online and elsewhere shows that substantial spends are being transferred from traditional media into the use of influencers," Professor Crouch said. Hence, the popularity and the positive impact that influencer marketing has on brand recognition can be explained by social theories of how people engage with each other and seek advice from one another. endobj 93112. Social media is a volatile environment and influencers who stray often inadvertently into controversial territory can face severe backlashes. Lou, C. and Yuan, S. (2019) Influencer marketing: how message value and credibility affect consumer trust of branded content on social media, Journal of Interactive Advertising, 19(1), pp. It became a lucrative pursuit when companies unsolicited started sending her clothes and other products for her child. According to Johansen and Guldvik (2017), the Theory of Reasoned Action (TRA) is a framework for understanding purchasing decisions induced by influencers. I think that this is very helpful since it allows rethinking the information from peer-reviewed sources from a perspective of how I would use it. I declare that this dissertation that I have submitted to Dublin Business School for the award of MSc Digital Marketing is the result of my own investigations, except where otherwise . Some studies, for instance, by Johansen and Guldvik (2017), take a different approach to defining the term influencer marketing, which may impact the way the evaluation of these phenomena is conducted. Table 1. Hence, people take their recommendations seriously. In addition, I comprehend the value of reliable data since some of the insights from peer-reviewed articles in this narrative literature review contain information that contradicts claims from popular online-based advertising magazines. Her relatablepostsare often followed by recommendations for products she has been sent by her management agency. (2020) provide an example of people with similar views on family and views and those who share a taste in coffee, stating that the latter category will have less attraction. The focus of the influencer marketing campaign is on the collaboration between an influencer and a marketing specialist of a brand, which differs from other advertising methods. (2019) Marketing research. <><>456 0 R]/P 545 0 R/Pg 541 0 R/S/Link>> (2019) Young consumers motivational drivers of brand engagement behavior on social media sites, Journal of Research in Interactive Marketing, 13(3), pp. Terms of Use `V63+\fVG3aaVhUt}+M[YYMY}[V\AZ\t|rk[V7?mL According to Childers, Lemon and Hoy (2019), the financial investment in digital marketing campaigns suppressed those made to advertise in traditional media in 2008. MARKETING DS 2016: 2016.7.21 _ ! The role of AI in different areas of digital marketing is rising, and we are yet to see the extent to which AI tools will revolutionize influencer marketing. Considering the impact of influencers and the established practice of failing to disclose partnerships, it is essential for policymakers outside the United States to create policies and guidelines for fair advertisements. Although most researchers agree that, in any case, a good influencer marketing campaign will contribute to a brands image, the exact relation to the purchases remains unknown. While this seems necessary to keep up with the market, its also important to keep in mind that over-reliance on these tools to guide the content creation process and marketing strategy development can harm both sides in the long run. This is another reason why advertisers are looking for new ways of engaging with consumers. The researchers found no correlation between sales numbers and influencer advertisement. UNIVERSITY OF TWENTE Master Thesis Date: 22thMay, 2017 Student: Lennart A. Braatz Student-ID: 1751891 Master specialization: Marketing Communications In general, this report contains many implications for practitioners and researchers that are interested in influencer marketing that has taught me how to use influencer marketing appropriately. As was seen with traditional marketing, the consumers develop a certain blindness to advertisements they see, which decreases the marketing ROI. Opresnik, M. O., Kotler, P. and Hollensen, S. (2017) Social media marketing: a practitioners guide. Influencer Marketing and Applicable Theories. Norwegian School of Economics. Miltgen, L. C., Cases, A. S. and Russel, C. A. "School holidays are nearly over, can you believe it? However, while it may seem that tools similar to ChatGPT and DALL-E can generate material out of nowhere, its not quite the case. In addition, this study was conducted to deliver its readers with a practical case, TikTok, emphasizing the impact of influencer marketing initiated on generation Z customers attitudes and responses. endobj 557 0 obj (2016) Examining online consumers initial trust-building from an elaboration likelihood model perspective, Information Systems Frontiers, 18(2), pp. 905-922. Therefore, there is a difference in terms of the benefits that micro and mega influencers bring to the brand. <><>432 0 R]/P 532 0 R/Pg 524 0 R/S/Link>> The concept of social proof is the basic theory of how trust between people affects decision making. uuid:7866ecca-b13a-11b2-0a00-90f250020000 Onwuegbuzie, A. and Frels, R. (2016) Seven steps to a comprehensive literature review: a multimodal and cultural approach. The lack of regulation, compared to traditional advertising, has also been identified as a problem. It seeks to answer whether social media influencers are seen as credible by their followers when promoting sustainable products. Another proof that influencer marketing is an important topic to study is the fact that many regulators in the United States, Europe, and other parts of the world created policies of ethical marketing that guide the work of the influencers (Association of National Advertisers, 2018). The relationship between an influencer and their audience is based on trust. 5 0 obj (2016) Social media and credibility indicators: the effect of influence cues, Computers in Human Behavior, 63, pp. Over the course of this project, I deepened my understanding of digital marketing strategies and developed a cohesive comprehension of what influencer marketing is, how it is used, and the actual impact it has on brands and sales. Hence, educators should include the different theories of influencer marketing into the curriculum to help students learn relevant marketing strategies. Influencers and content creatorsare on notice to come clean about their commercial deals and income streams as Australia's consumer watchdog prepares for a sweep of social media platforms. "So yeah, you can definitely earn a lot of money.". <>452 0 R]/P 542 0 R/Pg 541 0 R/S/Link>> However, Nurhandayani, Syarief and Najib (2019) found an improvement in brand image recognition and overall perception. The implication of this research for practitioners is the need to incorporate influencer marketing into their brands inbound marketing strategy. "Most of the feedback is, 'Oh my God, we didn't know we needed this'. For example, advertisements may be irritating to a consumer and mitigate the willingness to purchase (Quelhas-Brito et al., 2020). Mainly, this report uses quantitative studies, which examine the impact of influencers on advertising efforts because it is a more reliable source of information. Apart from better ROI, influencers leverage the psychological aspects of human communication the need to ask for advice, evidence or a recommendation from a trustworthy source (Trivedi and Sama, 2020; Onwuegbuzie and Frels, 2016; Magno and Cassia, 2018).
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