Navigating Influence

Do you notice advertisements on social media?

A mere scroll on Instagram or TikTok will reveal a variety of product endorsements that are seamlessly integrated into the fabric of everyday content. On TikTok, the ads appear every three scrolls like clockwork.

shallow focus photography of black smartphone

Photo by Jonah Pettrich on Unsplash

What is influencer marketing? What is an influencer?

An influencer is a person who is well-regarded in their field or an expert on a specific topic and has a steady following on social media platforms. Influencers can range from micro to mega depending on their following. A micro-influencer may be a food fanatic who has 70,000 followers, makes niche TikTok videos, and shares the best restaurants in New York. A mega influencer is someone like Alix Earle who has amassed a following of over 6.7 million.

Influencer marketing is a collaboration between popular social media “influencers” and brands. The goal is to promote a product or service. The partnerships, which have been going on since the inception of social media, gained enough prominence by 2009 for the U.S. Federal Trade Commission to intervene with regulations. The FTC states that influencers must transparently make it known whenever a post or statement is in a material relationship with the owner of the endorsed product.

Since the establishment of the FTC regulations, the industry has continued to skyrocket. The global market size has more than tripled since 2019 and by the end of 2024, the market is estimated to reach a record of $24 billion.

The industry’s growth correlates with the increased average time spent on social media specifically for college students. A study at Concordia University found that college students are spending 4.5 hours on average on social media daily.

Through large amounts of consumption, students will encounter mass amounts of marketing. Despite the FTC guidelines some influencer marketing masquerades as regular content.

Alix Earle arrives at the People's Choice Awards on Sunday, Feb. 18, 2024, at the Barker Hangar in Santa Monica, Calif. (Photo by Jordan Strauss/Invision/AP)

Student scrolls TikTok while waiting for class at Texas Christian University, Wednesday, March 27, 2024. (Photo by Alli Shoop)

Marianne Strobel at TCU Neely School of Business, April 2023, in Fort Worth, TX. (Photo by Alli Shoop)

What makes influencer marketing different compared to traditional forms of marketing?

A defining feature of influencer marketing is the element of perceived trust and authenticity.

Influencers have highly engaged niche audiences. Audiences can be comprised of a specific age group or geographical area. This segmentation allows brands to use influencer marketing to reach the right people, by using an influencer rather than traditional marketing techniques that are generally broad.

“I think that one of the pros of marketing on TikTok is that it is a platform that you get awareness and a lot of businesses are looking for that coverage. Marketing on social media gets eyeballs and it is more cost-effective for a company to go pay for that than traditional marketing.”

_{Marianne Strobel, marketing professional and professor at TCU}

Influencers are often awarded creative freedom when working with brands which requires less time and money on the brand's end. This also allows for the influencer to market products in ways that their audience will receive well because they know their viewers best.

Claire Groves, a senior marketing major at TCU, and a micro-influencer on TikTok, said “Most of the time brands will give me a creative brief that tells me about the brand, campaign, product, and examples of the vibe they are going for with the campaign. I use this creative brief to create an original idea. I like the brand deals that give me that creative freedom because I know how to write my ad in a way that still aligns with my content style.”

Claire Groves posts a ad for Starry on TikTok, April 9, 2024. (Video courtesy of Claire Groves)

Adaptability is key in influencer marketing as influencers must be able to promote brands and products based on changing trends which is not the case when brands use traditional marketing methods as they require months to plan and execute.

The effects of influencer marketing on college students

Increased brand awareness for products marketed via influencers to college students

Influencer marketing directly impacts college students due to their high intake of social media content and because social media guides the social normal.

Have you ever heard of the company Bloom, what about Tarte or Elf?

All of these companies primarily use influencer marketing to promote their brands and products. These brands all work with influencers who have a target demographic of college-age individuals.

When college students see their favorite influencer using or raving about a specific product it sparks curiosity. This curiosity leads consumers to explore more about a brand leading to increased brand awareness.

Heightened exposure to a brand is also likely when influencers are constantly posting about the products or services and students are consuming mass amounts of that content.

Product endorsement leads to higher sales by target consumers

In the realm of influencer marketing, trust is the currency that fuels engagement and drives consumer behavior.

Influencers exist in a unique category that differs from traditional celebrities. Influencers have followers who do not view them as distant but rather relatable, building feelings of trust and loyalty between influencers and followers.

In a survey completed by 50 TCU students, 62% reported that they trust the influencers that they follow. When followers see a product endorsed by an influencer they trust they are more likely to be interested in said product.

A study conducted by Washington State University found that for every dollar spent on influencer marketing campaigns, brands earn $6.50. With such a high return on investment, it is clear why more brands are turning to influencer marketing.

Elijah Clark, a TCU marketing professor, described how he feels as a marketing professional when he encounters ads on social media.

When an influencer speaks poorly about a product or service this can negatively impact brands and decrease sales.

College students are more likely to spend money on products “trending” among influencers

Trending products occur on social media when a product has gained popularity with a segment of consumers. Trending products are products that have gone viral on social media.

Influencers play a significant role in shaping cultural trends. College students, who are highly attuned to trends and cultural shifts, may adopt behaviors, preferences, or attitudes influenced by the content they consume, including their purchasing decisions.

Pew Research Center surveyed social media users in the U.S. and 30% said that they have purchased a product after seeing an influencer or content creator post about it online. That figure was 50% for women between the ages of 18 and 29.

TikTok is filled with different niches, and beauty is a large one. When a popular beauty influencers post about a favorite product it can rapidly sell out online and in-store among the major beauty chains like Sephora and Ulta Beauty.

Bethenny Frankel is a well-known beauty guru on social media and when she posts products on TikTok they can sell out rapidly.

Bethenny Frankel posts a makeup review on TikTok, March 29, 2024. (Video by @Bethennyfrankel)

Influencer marketing often provides convenient access to products through direct links or discount codes shared by influencers. The seamless integration of products in content makes it easier than ever to discover, trust, and purchase a product with just a few taps on a screen.

Mental health concerns arise

Excessive exposure to influencer content which often portrays idealized lifestyles can contribute to low self-esteem.

College is a time when individuals are aware of their social identity and many seek validation from their peers. Products endorsed by influencers often gain popularity and become symbols of social currency so students can project a certain image to their social circle.

Influencers often showcase lavish lifestyles, flawless appearances, and seemingly effortless success. Constant exposure to these unrealistic standards can lead to feelings of inadequacy.

70% of TCU students surveyed said that they have compared their life to an influencer and it resulted in negative feelings.

A visitor takes a photo at the TikTok exhibition, Thursday, Aug. 25, 2022.(AP Photo/Martin Meissner)

Devotees of TikTok monitor voting at the Capitol in Washington, as the House passed a bill that would lead to a nationwide ban of the popular video app if its China-based owner doesn't sell, Wednesday, March 13, 2024. (AP Photo/J. Scott Applewhite)

The future of influencer marketing

TCU students report that they spend most of their time on TikTok when indulging in social media. This could change due to the TikTok ban.

After years of attempts to ban the Chinese-owned app, a measure to outlaw TikTok has won congressional approval and has been signed by President Biden. This measure gives ByteDance, TikTok’s parent company, nine months to sell the company, with a potential three-month extension if a sale is in progress. If this does not happen the app will be banned in the United States.

This law gives ByteDance a few options. ByteDance can sell TikTok to a non-Chinese company, they can allow the ban to go into place and the app will be removed from all U.S. app stores, or they can fight the law in court.

ByteDance is expected to fight the law in court.

What does this mean in terms of influencer marketing?

According to a survey from the financial services group Wedbush, approximately 60% of TikTok user respondents said they would migrate to Instagram in the event that the ban goes into place.

Analysts with financial services company Bernstein, in a note to clients, forecast that Meta, which owns Instagram and Facebook, would take over as much as 60% of TikTok’s U.S. ad revenue, with YouTube gaining 25%.

Claire Groves, TCU student and influencer, said “I know there are other social media outlets but nothing has the same vibe and gathers the same kind of community like TikTok.”

Many TikTok influencers also have a large following on other social media apps like Instagram and would likely pivot their content to Instagram Reels. Influencers who have amassed their following primarily on TikTok remain concerned.

TikTok content creator, sits outside the U.S. Capitol, April 23, 2024, in Washington. (AP Photo/Mariam Zuhaib, file)

Do you notice advertisements on social media?

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