Trust in influencers has become an important part of marketing. This change opens new horizons for businesses. A publication on the Ideonomics website details these changes.
Previously, the idea of earning money through posts about everyday life seemed strange; however, influencers today are already a significant part of the economy. Forecasts indicate that by the end of 2025, the total volume of this market will reach 32 billion dollars.
The economy of influence, based on personal popularity and supported by digital platforms, represents an important aspect in both commercial and cultural spheres. The increase in the number of influencers has been a significant step in forming new relationships between brands, their customers, and content creators.
Traditionally, brands used celebrities to promote their products, relying on musicians, athletes, and actors. But by the end of the 2000s, thanks to social networks, ordinary people began to build their audiences. Initially, influencers were seen as a low-cost marketing option, but soon they took a key position in product promotion strategies.
By the 2010s, influencer marketing had become a real industry, with agencies and platforms emerging to find partners, and regulatory bodies like the Federal Trade Commission began to pay attention to sponsored content.
From the early 2010s to the 2020s, there was a rise in the popularity of videos and short clips, with an emphasis on authenticity and emotional immediacy. This dynamic deepened the connections between influencers and their followers, although brands did not always manage to replicate this. Influencers are now seen not only as content creators but also as entrepreneurs and cultural figures.
Reasons for Trust in Influencers
Influencers form a unique type of connection with their audience, known as "parasocial relationships." These are one-sided connections in which followers feel a personal bond with the influencer. Although this bond is not mutual, it is created through regular and authentic content.
The illusion of closeness explains why many consumers trust influencers more than brands. Although parasocial relationships are not reciprocal, they are perceived as real. Emotional closeness fosters trust, which becomes a scarce but valuable resource in today's economy.
While many influencers strive for financial independence, the first step towards this is creating social and cultural capital through community engagement, recognition, and expertise in their field. As the number of followers grows, so does the trust in the influencer, which does not go unnoticed by brands.
Despite risks such as algorithm changes and commercial partnerships that can undermine trust in influencers, many successfully navigate these challenges and maintain the trust of their community.
Values and Methods
The economy is based on the exchange of values, and influencers are no exception. Followers are willing to spend their time and attention on meaningful content. Research highlights several types of value that influencers can offer their audiences:
- Social Value: Influencers create communities around shared interests, using chats, comments, and engaging stories to foster a sense of belonging.
- Hedonic Value: Many influencers entertain their followers through humor and entertaining content, helping them escape from everyday worries.
- Epistemic Value: Content creators provide educational and informative content, satisfying their audience's curiosity.
- Utilitarian Value: From life hacks to product reviews, influencers help solve everyday problems.
- Financial Value: Followers seek good deals, and discounts, affiliate links, and sale announcements provide them with real benefits.
These types of values are interconnected, strengthening trust and potentially bringing financial benefits to influencers. Additionally, consumers tend to trust user-generated content more than traditional advertising.
Lessons for Brands
Firstly, data shows that smaller audience sizes can be more effective. Researchers categorize influencers by the number of followers, and nano and micro-influencers (up to 10,000 and 100,000 followers, respectively) often have higher engagement rates than mega-influencers with a million or more followers. Smaller influencers can establish closer connections with their audience, making their recommendations more persuasive.
Thus, brands are increasingly turning to collaborate with mid-tier and micro-influencers, where the return on investment often proves to be higher. This has led to the emergence of specialized agencies and platforms that facilitate such partnerships.
Secondly, brands must recognize that working with influencers comes with new challenges. As this field professionalizes, the rules become more complex. Influencers, like other entrepreneurs, must keep up with changes in legislation regarding sponsorship and advertising, violations of which can lead to serious penalties. Many also struggle with taxation when receiving free products for content creation. Additionally, ever-changing social media algorithms create further difficulties.
Influencers not only create content; they need to respond quickly to comments, manage communities, and deal with trolls, which is stressful in itself. Managing a personal brand is also a complex task. Too many partnerships with brands can lead to the influencer being perceived as "sellout." Since follower trust depends on the perception of the influencer as genuine, a poor brand choice or excessive advertising can destroy the connection with the audience. Any mistake can provoke a negative reaction.
While an increase in followers can lead to greater recognition and financial independence, some influencers fear losing their individuality. They find it challenging to balance work and personal life, as this is not a standard nine-to-five job; it requires constant activity, and the boundaries between personal and professional life become blurred.
In conclusion, engaging with influencers requires strategically minded brands to operate in a dynamic and high-pressure environment. Organizations like the American Influencer Council offer support, but unions in this field are lacking.
Influencers have become an important part of consumer culture not only through selling products but also through emotional closeness, cultural significance, and value. They are not just marketers but also creators, community leaders, and entrepreneurs.
As the content economy grows, trust remains a fundamental element. However, the next stage will require a careful approach to issues of regulation, platform ethics, and the welfare of content creators, which implies recognition of both the creative work of influencers and the evolving market they depend on.
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