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The search for authenticity in influencer marketing

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The search for authenticity in influencer marketing

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THE SEARCH FOR AUTHENTICITY IN INFLUENCER MARKETING

By Cathy Park

______________________________________________________________________________

A Thesis Presented to the
FACULTY OF THE USC ANNENBERG SCHOOL
FOR COMMUNICATION AND JOURNALISM
UNIVERSITY OF SOUTHERN CALIFORNIA
In Partial Fulfillment of the Requirements for the Degree
MASTER OF ARTS
(STRATEGIC PUBLIC RELATIONS)

May 2020

Copyright 2020 Cathy Park

ii
Dedication

This thesis is dedicated to my family, close friends, teachers and mentors. The following
work would not be possible without their support. Thank you all for your words of
encouragement and patience and for always believing in me.
Mom and Dad, thank you for being a constant source of inspiration and for providing me
with the opportunities to chase my dreams and pursue what I love. I hope I can make you proud.

iii
Acknowledgements
When I first embarked on the journey to complete this thesis, I did not expect it to be as
eye-opening and rewarding as it was. Though it was stressful at times, I learned so much about
the captivating field of influencer marketing, and I’m grateful for the experience that pushed me
to conduct my own research and produce original work.
I could not have completed this thesis without help. I would especially like to thank my
thesis committee chair and mentor, Burghardt Tenderich. His academic guidance and uplifting
words were vital in the completion of this thesis, and I appreciate the support he has provided me
with through my graduate studies at the University of Southern California. I would also like to
thank committee members Fred Cook and Robert Kozinets for their feedback, direction and
insights along the way. I’m incredibly grateful to have had the opportunity to speak with and
learn from them both.
Lastly, I want to extend my gratitude to those who participated in interviews for my
research, including Melody Cheng from the AsianBossGirl podcast, Eunjin Anna Kim from USC
Annenberg, Kimberly Smith who runs the Penny Pincher Fashion blog, Instagram food blogger
Cindy Yang, Tyler Stevens from Kinwoven and LiveYourStyle, Evan Asano from Mediakix,
Freddy Tran Nager from USC Annenberg and Carlye Burchell from fashion watch company
Daniel Wellington. Their perspectives were instrumental in formulating and supporting the ideas
presented in this thesis, so I would like to thank them for being open and sharing their thoughts
with me.

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Table of Contents
Dedication………………………………………………………………….………….…………. ii

Acknowledgements.…………………………………………….…………….………………… iii

Abstract……………………………………………………………………….……………….….vi

Part I: Introduction……….…….………….…………….………….…………..…………….…...1
The Rise of Influencers……………………………………………………………………2

Part II: The Art of Influencing………………………..…………….……….……………..….…..5
The Power of Word-of-Mouth………………………………………………………...…..6
Celebrity Value………………………………………………….………….……………..9
The Social Media Ecosystem…………………………………………….……………....11

Part III: Influencers Today…….………………………….……………………..…..….….…….13
The Business of Influencing…………………….……………………………….………15
The Underlying Ethical Issues…………………………...………………………………19

Part IV: Influencer Fraud: Fake It ‘til You Make it…………...………..……...……..…….……21
A Problem for Brands…………...………………...………………...……………...……23
How Fraud Propagates………………………….………………….…………….………25
Technology as a Solution…………………….…….…………….………………………27

Part V: A New Approach: Quality over Quantity…….….…….….…………..……..…….……29
Beyond Just the Numbers………………….…………………………….………………30
The Smaller the Better? …………….………….…….……………….…………………33
Achieving Organic Growth………………………………………………………………37

Part VI: To Disclose or Not to Disclose? ….………….…….……...……………………………39
FTC Guidelines…………………………….………….…………………………………40
Branded Content or Deception? …………………………………………………………42
Why Not Disclose? …………………………….………………….….…………………43
The Consumer’s Perspectives……………………………………………………………46
Attempts at Regulating…………………………….……….……………...…….………48

Part VII: Getting Past the Facade………………………….….…..………..…………….………51
Focusing on Relationships………………………………………………….……………52
Honesty First…………………………………………….…………………….…………55
Mission-Oriented Influencing……………………………………………………………57
v
The Hunt for Meaningful Content….…….….……...…...….……….…...….….…....….60

Part VIII: Conclusion…………….……………….…….…..……………………………………63

Bibliography…………………………………………….…………………………………….…67

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Abstract

Although influencer marketing initially grew on the basis of trust, the practice is more
recently facing ethical dilemmas. This paper explores the growth of influencer marketing over
the past couple of years, while critically looking at some of the problems that brands, influencers,
regulators and consumers continue to face. The purpose of the study is to identify some of the
core ethical issues of influencer marketing and outline possible solutions that will allow entities
to reclaim the authenticity and genuineness that has fueled its success over the past couple of
years.
The thesis begins with an overview of influencers, their growth, the relevant business and
engagement models, and then transitions into two ethical issues that the industry is facing—the
prevalence of fraudulent practices such as buying followers and engagement and the lack of
disclosure and transparency of sponsored content. I then suggest new tactics and approaches to
influencer marketing based on case studies and insights gained from interviews with influencer
marketing experts, scholars and influencers themselves.
The goal of this thesis is to contribute to the creation of a more trustworthy and
transparent influencer marketing industry.
1
Part I: Introduction
Today, it’s uncommon or maybe even impossible to scroll through one’s Instagram feed
without seeing ads. Yes, paid ad posts are prolific on the platform, but there’s another, more
enigmatic type of advertising that has developed into a 1.7 billion-dollar industry in 20191 and is
projected to grow to a 15 billion-dollar market by 2022.2
Digital marketing has been valued for its transparency—for providing detailed metrics on
the effectiveness of campaigns or posts. But influencer marketing is a form of digital marketing
that is a little messier, and its growth, which has been spearheaded by online communities, social
media and blogs, has not been free of its fair share of ethical issues. In fact, many brands are
rethinking their influencer marketing tactics and are starting to question whether the investment
is worth it at all. Ad Age states that influencer marketing “is on the brink of explosive growth”
but should be cleaning up its “‘Wild West’ terrain,” which has largely remained unregulated.3
Influencer marketing is promising, despite claims that the practice is dwindling due to
oversaturation and consumer fatigue.4 However, the lack of policing and standardization among
influencers has led the industry to face a loss of authenticity or genuineness, especially when it
comes to influencers’ content and their recommendations. Therefore, I believe it is vital to

1 Mediakix. “Instagram Influencer Marketing Is Now A $1.7 Billion Industry.” Mediakix, October 7, 2019.
https://mediakix.com/blog/instagram-influencer-marketing-industry-size-how-big//.

2 Schomer, Audrey. “Influencer Marketing: State of the Social Media Influencer Market in 2020.” Business Insider.
Business Insider, December 17, 2019. https://www.businessinsider.com/influencer-marketing-report.

3 Waller, Neil. “5 Ways Influencer Marketing Will Evolve in 2020.” Ad Age, January 2, 2020.
https://adage.com/article/opinion/5-ways-influencer-marketing-will-evolve-2020/2224401.

4 Blum, Sam. “The Fatigue Hitting Influencers as Instagram Evolves.” BBC Worklife. BBC, October 21, 2019.
https://www.bbc.com/worklife/article/20191022-the-fatigue-hitting-influencers-as-instagram-evolves.

2
examine and study how marketers, brands and influencers can move forward in the most
effective and authentic ways that will be mutually beneficial to all parties involved.
This introduction section will define “influencer,” explain their growth in recent years
and will touch on why they are valuable in the eyes of their audiences and marketers.

The Rise of Influencers
So, what is an “influencer”? The ubiquity of the word today has made it somewhat
difficult to define. In the simplest sense, an influencer can be defined as an individual who has
the power and ability to change the attitudes or behaviors of others. Despite notions that
influencer marketing is a recent phenomenon, it’s important to recognize that “influencers,” to
some extent, have always been around, especially in the form of market mavens, who are
influential consumers “who have information about many kinds of products, places to shop, and
other facets of markets and initiate discussion with other consumers…”5 These information
specialists possess a breadth of knowledge, which prompts others to seek their perceptions and
advice. Market mavens were the “influencers” of the pre-social media era, and many of them still
have significant impact over others’ purchase decisions and beliefs. From church and community
leaders to doctors and local bartenders, these “influential” people certainly have an impact on
others’ attitudes, and their voices can be quite powerful depending on the audience and the
situation.
Influencers have the capacity to gain immense social capital, and I believe the rise of
social media has altered the definition of influencer and has amplified this capital. Most of

5 Feick, Lawrence F., and Linda L. Price. “The Market Maven: A Diffuser of Marketplace Information.” Journal of
Marketing 51, no. 1 (1987): 85. https://doi.org/10.2307/1251146.

3
today’s most visible influencers have a large following on social media platforms, which is
indicative of their audience and the supposed influence they have. The follower count holds
weight on social media, as it’s primarily where their “influence'' is most present and may result
in a larger reach—a metric that appeals to many marketers. Influencers can trade their social
capital for other forms, like financial compensation, as they position themselves as experts in
certain realms. Their status on social media allows them to ultimately sway purchase decisions,
in much of the same way that market mavens do. In fact, WIRED specifies the modern
influencer as “someone (or something) with the power to affect the buying habits or quantifiable
actions by uploading some form of original—often sponsored— content to social media
platforms.”6 The value of influencers comes from their perceived authenticity, as many create
their own content for their audiences and speak to them in a more approachable manner, which
creates “an air of authenticity that is rarely seen in semi-commercial spaces.”7
At first, social media influencers were seen simply as “famous” individuals who garnered
lots of eyeballs, but they are notably different from celebrities who gain publicity through films,
music or TV shows, as they are typically better connected to their audiences.8 Social media
influencers have separated themselves from celebrities through the “perception of expertise and
accessibility,”9 as well as the consistent creation of content. So, although “influencers,” in the
traditional sense, have always been around, modern online influencers, who have persuasive
voices that brands can tap into, are a rather recent phenomenon that has been fueled by the

6 Martineau, Paris. “The WIRED Guide to Influencers.” Wired. Conde Nast, December 4, 2019.
https://www.wired.com/story/what-is-an-influencer/.

7 Ibid.

8 Jin, S. Venus, Aziz Muqaddam, and Ehri Ryu. “Instafamous and Social Media Influencer Marketing.” Marketing
Intelligence & Planning 37, no. 5 (May 2019): 568. https://doi.org/10.1108/mip-09-2018-0375.

9 Martineau. “The WIRED Guide to Influencers.”
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proliferation of online content and the sharing of more personal aspects on social media
platforms. Because influencers disseminate content that is deemed as interesting or meaningful,
audiences perceive them to exist at the intersections of brands and their consumers, and
influencers can use their unique positioning to circumvent and relieve some of the tensions that
exist from consumers’ distaste of brands’ blatant advertising efforts.
It’s also important to recognize and note that influencers do not have to be real people, or
people at all. Pet influencer Doug the Pug has amassed a following of over 10 million and has
partnered with many celebrities, such as Shakira and Cole Sprouse.10 Computer-generated avatar
Miquela Sousa (@lilmiquela) has also built a strong social media presence with 1.9 million
followers on Instagram, posting about social causes, boys and other seemingly relatable aspects
of her “teenage” digital avatar persona.11 USA Today notes that even though her “existence”
may be fake, Miquela’s “influence” is surely real.12 Influencers today clearly take on many
forms, and even though they may not be human, they can still score brand deals and eyeballs.
Brands and agencies utilize influencers to reach specific audiences, and because
influencers are generally trusted within their respective industries, their words hold much value
to their audiences. Influencers have the ability to shape the behaviors and tastes of their
audiences, which makes them a powerful digital marketing tool. According to a 2020 report
published by Influencer Marketing Hub, 63 percent of brands expect to increase their influencer

10 Leskin, Paige. “The 22 Most Popular Pet Influencers, from Jiff Pom to Doug the Pug.” Business Insider. Business
Insider, September 1, 2019. https://www.businessinsider.com/most-popular-pet-influencers-instagram-youtube-
tiktok-jiffpom-lil-bub-2019-8.

11 Trepany, Charles. “The Robot Invasion Has Begun: Meet the Computer-Generated Influencers Taking over
Instagram.” USA Today. Gannett Satellite Information Network, October 16, 2019.
https://www.usatoday.com/story/life/2019/10/16/cgi-influencers-blur-line-between-reality-and-fantasy-instagram-
advertising/3790471002/.

12 Ibid.
5
spend over the next year, and it’s becoming a more widely used channel.13 BigCommerce
surveyed an assortment of organizations and found that the two most common influencer
marketing budgets set aside by brands are between $1,000-$10,000 and $100,000-$500,000,
which demonstrates that organizations of various types and sizes are utilizing influencers and
setting aside portions of their budgets for influencer marketing.14
The quick growth of the influencer marketing practice has undoubtedly altered the very
nature of advertising and online content, and anyone with a “healthy number of followers” can
“assume the mantle” and become an influencer.15 Yet, I believe this has led to some bad apples
in the mix, and due to the sheer amount of online content, the practice today remains difficult to
regulate. But before diving into the details of how influencer marketing currently operates, it’s
important to understand what has paved the way for its growth.

Part II: The Art of Influencing
What makes influencers appealing? Influencer marketing combines some core, more
traditional aspects of advertising, such as word-of-mouth and celebrity endorsements, with the
expansiveness of today’s social and digital landscape. In order to study how influencers came to
be and why they are viewed as such valuable marketing tools, relevant marketing facets must be
analyzed, as they have paved the way for the reign of influencers, their status and their content.

13 “The State of Influencer Marketing 2019: Benchmark Report [ Infographic].” Influencer Marketing Hub, February
19, 2020. https://influencermarketinghub.com/influencer-marketing-2019-benchmark-report/.

14 Bailis, Rochelle. “Influencer Marketing Statistics in 2019 (Trends Key Takeaways).” The BigCommerce Blog,
January 24, 2020. https://www.bigcommerce.com/blog/influencer-marketing-statistics/#10-most-important-
influencer-marketing-statistics-for-2020.

15 Zimmer, Ben. “The Growing Influence of 'Influencer'.” The Wall Street Journal. Dow Jones & Company, April
28, 2016. https://www.wsj.com/articles/the-growing-influence-of-influencer-1461874150.

6
Influencer marketing keenly combines the benefits that come from word-of-mouth and
endorsements with the creative agency that is available on social media; therefore, influencers’
sponsorships—if the influencer is congruent with brand or product being promoted—can appear
less intrusive and more credible to audiences in comparison to other forms of blatant forms of
advertising.16 This section offers a look at how influencer marketing keenly leverages the
benefits of word-of-mouth, celebrity endorsements and social media content to appeal to mass
audiences but also how it sets itself apart.

The Power of Word-of-Mouth
Word-of-mouth is the organic spread of information about a product or brand—a free
form of advertisement or promotion that is “triggered by an event the customer experiences.”
Oftentimes, it’s an event “beyond what is expected” by marketers. 17 Many brands try to leverage
word-of-mouth by taking actions that will motivate customers to talk about and recommend
products or services, subsequently encouraging them to put their “credibility or social currency
on the line.”18 Word-of-mouth marketing tactics are the actions taken by a brand that have the
potential to make something go viral naturally, usually leveraging the shareability of content.19
As consumers share their experiences with each other, the chain of conversations creates buzz

16 Jin, S. Venus, and Aziz Muqaddam. “Product Placement 2.0: ‘Do Brands Need Influencers, or Do Influencers
Need Brands?’” Journal of Brand Management 26, no. 5 (November 2019): 524. https://doi.org/10.1057/s41262-
019-00151-z.

17 Mosley, Megan. “Why Is Word of Mouth Marketing so Important?” Social Media Today, June 25, 2017.
https://www.socialmediatoday.com/marketing/why-word-mouth-marketing-so-important.

18 Mosley, Megan. “Why Is Word of Mouth Marketing so Incredibly Important?” Referral Rock Blog, February 19,
2018. https://referralrock.com/blog/word-of-mouth-marketing/.

19 Mosley, Megan. “Why Is Word of Mouth Marketing so Important?”

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about a brand or product. A specific example of this effort is referral marketing, in which brands
target individuals and entice them to encourage their friends to buy a product or service.
Recommenders usually receive some kind of reward for the people they refer, and this strategy is
a proactive way to increase word-of-mouth and the customer base.20 Influencer marketing
utilizes the idea of referral marketing on a larger scale, oftentimes by providing influencers
commissions on their referrals.
Different types of online content also have the potential to increase word-of-mouth.
Usually, the most effective ads are the ones that get people talking and spark organic
conversations.21 Word-of-mouth is significant in influencing perceptions, because it appears
more trustworthy than other forms of advertising messages, and the dynamic online ecosystem
has provided platforms and sources for consumers to seek and give recommendations at
unprecedented speed and at almost no cost.22 Word-of-mouth is especially important when it
comes to digital marketing. According to a study on digital marketing efforts, the top two
indicators of effectiveness of digital marketing are brand awareness and word-of-mouth buzz,23
and I believe the value of word-of-mouth has clearly become increasingly important with the
advent of the web and social media.
Another notable force behind word-of-mouth is customer reviews, which are commonly
shared and made accessible online. Customer reviews are powerful and sparking organic

20 Ibid.

21 Keller, Ed, and Brad Fay. “Word-of-Mouth Advocacy.” Journal of Advertising Research 52, no. 4 (2012): 460.
https://doi.org/10.2501/jar-52-4-459-464.

22 Li, Jin, and Lingjing Zhan. “Online Persuasion: How the Written Word Drives WOM.” Journal of Advertising
Research 51, no. 1 (2011): 239. https://doi.org/10.2501/jar-51-1-239-257.

23 Maria Teresa Pinheiro Melo Borges Tiago, and José Manuel Cristóvão Veríssimo. “Digital Marketing and Social
Media: Why Bother?” Business Horizons 57, no. 6 (2014): 706. https://doi.org/10.1016/j.bushor.2014.07.002.

8
conversations through reviews has been a core focus for marketers. In fact, in 2017, it was
reported that 90 percent of purchasing decisions are influenced by online reviews.24 Due to the
ease of posting and accessing online reviews, the value of earned media has been amplified with
advent of the web, as consumers can now be “co-producers” of meaning.25 The democratization
of media and the subsequent culture of sharing experiences online have largely paved the way
for influencers.
Furthermore, even though advertising can assist with increasing word-of-mouth, there
have been significant shifts in how people pay attention, and brands are looking for new ways to
harness that attention more consistently. According to Statista, the ad blocking user penetration
rate in the U.S. has been steadily increasing from 2014 and is expected to reach 27 percent in
2021.26 This means that about a quarter of the paid ad messages on digital platforms won’t reach
their audiences, which demonstrates a need for brands to incorporate other forms of marketing
aside from paid advertisements. With the advent of hyper-targeted digital ads and popups, it’s no
surprise that consumers feel overwhelmed with ad content and develop negative attitudes toward
them. This growing negative disposition to digital ads is important, and in my opinion, it goes to
show that marketers should be focusing on more personal, more grassroots approaches to reach
their target audiences. The old model of public relations and advertising noted that consumers
needed to be rationally persuaded of the benefits of a product. However, according to the new

24 Ayyar, Rohan. “Why You Should Be Letting Customer Reviews Define Your Brand.” Content Marketing
Consulting and Social Media Strategy, March 15, 2017. https://www.convinceandconvert.com/online-customer-
experience/customer-reviews-define-your-brand/.

25 Kozinets, Robert V. “Social Brand Engagement: Lost in Translation: The Social Shaping of Marketing
Messaging.” GfK Marketing Intelligence Review 6, no. 2 (January 2014): 23–27. https://doi.org/10.2478/gfkmir-
2014-0091.

26 Guttmann, A. “U.S. Ad Blocking Reach 2021.” Statista, August 9, 2019.
https://www.statista.com/statistics/804008/ad-blocking-reach-usage-us/.

9
model, consumers are more likely to be driven by “emotional cues and nonconscious
heuristics.”27 In order to command attention in a crowded media landscape and to get people
talking, an increased focus on relevancy and sentimental appeal are more crucial than ever
before. s
Audiences crave a more relatable approach, and many brands hope to generate and
sustain word-of-mouth online through the use of social media influencers. Because influencers
position themselves to be experts in certain realms, their followers typically trust what they say.
Yet, consistent social media brand engagement is not necessarily about the amplification of a
message that increases word-of-mouth, but more about how brand recommendations become
interwoven into the consumer’s social experiences.28 Audiences often rely on influencers for
helpful information and recommendations, but simply utilizing influencers as promotional agents
is not enough; the narrative must be crafted to fit with the figure’s image, the industry and the
nuances of the specific online social communities. And for word-of-mouth to truly be effective,
it needs to leverage other key components as well.

Celebrity Value
Influencer marketing sometimes involves a meaning transfer, which is explained by
Grant McCracken’s Meaning Transfer Model. The model postulates that the effectiveness of a
celebrity’s endorsement stems from his or her cultural meaning and how this meaning can be
applied to the endorsed product. Celebrities develop their own distinct meaning through their

27 Galloway, Chris. “Blink and They’re Gone: PR and the Battle for Attention.” Public Relations Review 43, no. 5
(2017): 974. https://doi.org/10.1016/j.pubrev.2017.06.010.

28 Kozinets, Robert V. Kristine de Valck, Andrea C. Wojnicki and Sarah J. S. Wilner. “Social Brand Engagement:
Lost in Translation: The Social Shaping of Marketing Messaging.” 27.
10
roles, campaigns, traits and accomplishments, and through endorsements, they aim to transfer
their meaning to the product, typically providing a perceived enhancement of value to it.29
Similarly, when an influencer promotes a product, his or her image automatically becomes
associated with that specific brand; the identity of that figure becomes inherently tied to the
brand image in the minds of audiences. And although this is an important facet of influencer
marketing, this phenomenon is not new. Celebrity partnerships embody the same technique to
bring attention to and provide meaning and a humanizing aspect to products. Incorporations of
these high-profile figures tend to positively affect consumers’ attitudes toward products.30
However, the effectiveness of celebrities in advertisements can depend on a myriad of
varied criteria, such as the figure’s gender, type, match, explicitness and his or her familiarity of
the endorsed object. Much like celebrities, the self-presentation of influencers translates into a
meaning transfer for brands that chose to work with them, and this meaning may not necessarily
equate fame and glamour, especially for smaller-scale influencers. The meaning could be derived
from the expertise of influencers in their respective industries or the unique aspects of their
personalities that draw audiences to their content. Furthermore, compared with traditional
celebrities who garnered fame through formal outlets like TV, music or film, influencers are
typically seen more as friends to their audiences, not necessarily as paid advertisers or
endorsers.31 This perception of comradery is part of the meaning, or value, that an influencer can
provide when working with brands. The attention of an influencer is also typically attained more

29 McCracken, Grant. “Who Is the Celebrity Endorser? Cultural Foundations of the Endorsement Process.” Journal
of Consumer Research 16, no. 3 (1989): 310–21. https://doi.org/10.1086/209217.

30 Knoll, Johannes, and Jörg Matthes. “The Effectiveness of Celebrity Endorsements: A Meta-Analysis.” Journal of
the Academy of Marketing Science 45, no. 1 (December 2016): 55–75. https://doi.org/10.1007/s11747-016-0503-8.

31 Martineau. “The WIRED Guide to Influencers.”

11
gradually than that of a big star.32 In the case of nano-influencers, their journey to prominence
remains ongoing, and this is actually what makes them more enticing to audiences who are
brought along on that journey. In my opinion, the close-knit feel makes smaller-scale influencers
more approachable. Traditional celebrities often appear to live rather glamorous everyday lives
that are unrelatable to most audiences and their followers. Yet, the quality of life of an influencer
seems a bit more conventional and familiar than those of traditional celebrities, especially
because many influencers showcase the more intimate, personal aspects of their lives. This
intimacy and relatability, in turn, could also help their recommendations appear more genuine.
Another fundamental difference between traditional celebrity partnerships and influencer-
promoted content is that ads with celebrities are more clearly presented as promotional. With
influencers, the lines are blurrier, as there is currently a lack of official consequences in place to
monitor and police how the content is presented, especially since social media platforms are
oversaturated with an immense number of influencers. The use of celebrities in ads clearly
provides value for both brands and celebrities, and influencer marketing allows for that mutually
beneficial relationship on a more widespread scale, offering more choices for brands. But
because influencers operate under less stringent or regulated circumstances, the advertising can
be more misleading and deceptive. This is just one of the many phenomena that have surfaced
due to the growth of digital media.

The Social Media Ecosystem
Social media has allowed for the democratization of media content and has served as a
source of empowerment, as consumers have gone from bystanders of media content to active

32 Ibid.

12
participants. Brands today aim to engage traditional and digital elements in campaigns in a
synergistic fashion,33 and oftentimes encourage two-way dialogue with their audiences. Social
media platforms can also serve as outlets for users to discuss products, brands and express their
thoughts rather freely. They serve as a powerful generator of word-of-mouth content and
valuable advertising platforms. In the past, digital marketing functioned off of “very low
investment in comparison with traditional media”34 but now, especially with changes in
consumer attention, viewership and listenership, brands are devoting extensive portions of their
marketing budgets to digital marketing efforts. According to a study by digital marketing agency
Array Digital, internet advertising, as a whole, makes up 44.7 percent of the U.S. ad spending in
2020, surpassing TV ads, to become the biggest U.S. ad medium.35 There’s no doubt that
influencer marketing is becoming a larger chunk of this mix.
Because social media has an incredibly low barrier of entry for users to join, it has
spearheaded a personal branding movement, specifically in the past five years, which has
leveraged this grassroots creation of “micro-celebrities” and influencers.36 Anyone can join a
social media site and start accumulating a following if other users deem the content as appealing.
Arguably, the democratization of the media landscape is progressive and has led to more
knowledge and creative content being circulated. However, the media terrain no longer has the

33 Hanna, Richard, Andrew Rohm, and Victoria L. Crittenden. “We’re All Connected: The Power of the Social
Media Ecosystem.” Business Horizons 54, no. 3 (2011): 265–73. https://doi.org/10.1016/j.bushor.2011.01.007.

34 Tiago & Veríssimo “Digital Marketing and Social Media: Why Bother?” 706.

35 Array Digital. “Traditional vs. Digital Advertising - Where to Spend.” Array Digital, September 27, 2019.
https://thisisarray.com/traditional-vs-digital-advertising/.

36 Kozinets, Robert V. and Stefano Cerone. “Social Brand Engagement: Between the Suit and the Selfie: Executives’
Lessons on the Social “Micro-Celebrity.” GfK Marketing Intelligence Review 6, no. 2 (January 2014): 21.
https://doi.org/10.2478/gfkmir-2014-0091.

13
infrastructure it did when official journalistic outlets were the primary producers of content.
Journalism embodies a formal editorial process with strict standards, but the modern digital
landscape does not. This creates a messier and rather complicated space that influencers have
become a massive part of.
Still, even with the complexities of social media, it’s undeniable that influencers have
become a popular marketing tool, and much of their value has undoubtedly come from the
integration of the benefits that come from word-of-mouth, celebrity endorsements and the
democratized media ecosystem. Although online influencers have been around since the advent
of online communities in the early 2000s37, influencers have evolved since then, and this in turn,
has affected how the business aspects of influencer marketing function today.

Part III: Influencers Today
Before diving into some of the ethical issues of influencer marketing, it is crucial to look
at the current state of influencer marketing—how influencers are categorized, how the business
operates and what types of engagement models are frequently used.
The first way to categorize influencers is by their follower numbers. Most marketers have
relied on categorizing influencers based on tiers of their audience. Leading influencer marketing
agency Mediakix separates Instagram influencers into the following five categories38:
Category Number of followers
Mega-influencers Over 1,000,000
Macro-influencers Between 1,000,000 and 500,000

37 Martineau. “The WIRED Guide to Influencers.”

38 Mediakix. “Influencer Tiers for the Influencer Marketing Industry.” Mediakix, May 27, 2019.
https://mediakix.com/influencer-marketing-resources/influencer-tiers/.
14
Mid-tier influencers Between 50,000 and 500,000
Micro-influencers Between 10,000 and 50,000
Nano-influencers Between 1,000 and 10,000

But aside from follower count, there are other notable distinctions to be made when
thinking about influencers, and it’s important to note that popularity does not necessarily equate
to influence. Many mainstream celebrities are certainly influential, as they are looked up to for
their stature, talent and their beauty. However, they may not have much actual influence over
purchase decisions, as they promote a rather wide array of products and oftentimes, don’t have a
special area of expertise.
Social media sensations and reality stars are another, more recent type of influencer I’ve
noticed on Instagram. For example, the reality show The Bachelor has “become a launchpad for
influencers who sell a wide range of lifestyle products, sustain a growing media ecosystem, and
function as recurring characters in the show’s extended universe.”39 These individuals are almost
overnight sensations that have become popular and have amassed a large following and continue
to post engaging content to appeal to audiences even after their runs on TV shows end. The third
type of influencer that I recognize as distinct are the experts and thought leaders. These may be
bloggers that are more niche-focused on certain topics, and their audiences trust their expertise
regarding a particular subject matter. They typically have more credibility with products in their
respective industries.

39 Bereznak, Alyssa. “How the 'Bachelor' Franchise Became an Influencer Launchpad.” The Ringer. The Ringer,
January 6, 2020. https://www.theringer.com/tv/2020/1/6/21048923/the-bachelor-bachelorette-instagram-influencer.

15
The Business of Influencing
In today’s marketing terrain, all of these types of influencers are valid and appealing in
their own way and take part in a variety of brand deals. Influencer marketing is most visible on
social media posts on influencers’ accounts, as that’s where their audiences are and where
growth is most viable. Instagram, in particular, seems to be the “gold standard” for influencers,
as 79 percent of brands tap into Instagram for influencer campaigns.40 The platform has
measures and features in place that can be conducive to a wide array of influencer content and
makes it easier for audiences to discover influential figures to follow, such as the Explore page,
hashtags, IGTV and live videos.41 Instagram’s hyper-focus on visual content may be especially
beneficial to industries such as fashion and beauty, which tend to incorporate certain aesthetics in
their advertising efforts. However, even if most influencer content tends to be present on the
Instagram platform, the engagement models have broadened.
For many influencers, their social media presence has become their lifeline and primary
source of income. Once an influencer develops a prominent following, the brand deals start
flowing in. Sponsorships can take many forms—a business relationship, monetary compensation
or free products42, and now, many different partnerships and engagement models exist. Rates for
monetary compensation vary depending on the influencer’s reach, which consider the number of
followers and the engagement—likes and comments—their content receives.

40 Schomer, Audrey. “Influencer Marketing: State of the Social Media Influencer Market in 2020.”

41 Zadeh, Nina, and Clairesse Brogoitti. “Top 10 Instagram Features for Bloggers and Influencers.” Sidewalker
Daily, October 5, 2019. https://sidewalkerdaily.com/instagram-features/.

42 Jordan, Melonie. “Law Elevated - What Brands Should Consider with Social Media Influencer.” Mississippi
Business Journal, October 5, 2017. https://msbusiness.com/2017/10/law-elevated-brands-consider-social-media-
influencer/.

16
USA Today conducted an in-depth study looking at how much influencers can actually
charge. An industry rule of thumb is a baseline rate of about $100 for every 10,000 followers on
Instagram, which means that someone with 100,000 followers could charge $1,000 per post, and
someone with 1 million followers could charge $10,000, although some experts even call these
numbers a conservative measure.43 However, although this makes pricing seem standardized, it
varies heavily based on what the influencer demands, how much the influencer likes the product,
what the brand is willing to pay and myriad other case-by-case factors. Compensation can range
from a flat fee or can be commission-based, depending on the content’s performance—its
engagement rates and conversions to sales.44 Brands often offer other perks like gift cards and
free products in addition to monetary compensation, and although payments differ, micro-
influencers and nano-influencers can generally make up to hundreds of dollars per project or
post.45
On the other hand, mega-influencers can boast incredibly high earnings from a single
post. Kendall Jenner was reportedly paid $250,000 for just one post, an orange square, promoting
the 2017 Fyre Festival event, promoted as “the greatest party that never happened.”46 Clearly, the
influencer space can be incredibly lucrative for those who make it big. Although prices for ads
are typically quantifiable, the influencer marketing terrain has become increasingly saturated

43 Kelly, Cara. “Fyre Festival to Fashion Week, How Do Instagram Influencers Make so Much Money?” USA
Today, February 13, 2019. https://www.usatoday.com/story/news/investigations/2019/02/12/instagram-youtube-
influencer-rates-fyre-festival-fashion-week-money-rich-branding-ads-girls/2787560002/.

44 IZEA. “Influencer Marketing Business Model: What It Is and Why You Need It.” IZEA, June 3, 2019.
https://izea.com/2018/11/29/influencer-marketing-business-model-2/.

45 Tosone, Austen. “5 Micro-Influencers Share How Much They Get Paid For #SponCon.” HuffPost. HuffPost,
December 24, 2019. https://www.huffpost.com/entry/how-much-nano-influencers-make-sponsored-
content_l_5df91a01e4b0ae01a1e8df69.

46 Kelly, Cara. “Fyre Festival to Fashion Week, How Do Instagram Influencers Make so Much Money?”

17
with “networks across thousands of figures may be hard to track and analyze.”47 Rates are
generally negotiable based on the brand and the influencer, but the pricing for influencers is
incredibly fluid and isn’t based on a standardized number of clicks, or ratings like Nielsen
provides for TV ads. Influencers can generally negotiate their pay depending on how long brands
want to use content from influencers, although many partnerships result in just one-off deals that
may not result in enduring relationships between brands and influencers.
Typically, with one-off deals, a brand will reach out to an influencer and provide clear
guidelines that instruct the influencer on how to post about the product and a deadline with a
timeframe to keep the post up. The influencer’s audience is one that the brand is hoping to reach
through social media content. However, brands are now trying different types of engagements, as
platforms like Instagram are becoming oversaturated with promotional posts from influencers.
Mediakix outlined four of the primary ways that influencers can promote a brand: Sponsored
content that doesn’t include a direct endorsement but helps brands increase visibility among
certain audience; product-focused content like unboxings and reviews; social media takeovers,
which can draw audiences to their brand through select influencers; and event-based
partnerships.48
Events-based engagements have become increasingly popular, as they focus on
promoting in-person experiences with influencers in the form of meet-and-greets and generally
consist of a longer campaign with multiple pieces of content that includes videos and photos.49 In

47 Bloom, David. “Five Key Trends Shaping Influencer Marketing In 2019.” Forbes. Forbes Magazine, January 2,
2019. https://www.forbes.com/sites/dbloom/2019/01/01/influencer-marketing-top-trends-2019/#2687e3186b25.

48 Mediakix. “4 Ways That Brands Market with Influencers.” Mediakix, December 28, 2018.
https://mediakix.com/blog/brands-market-with-influencers-sponsorship-product-placement/.

49 Influencer Marketing Hub. “How to Use Influencer Marketing to Promote Your Events: 5 Tips from the Experts.”
Influencer Marketing Hub, January 24, 2019. https://influencermarketinghub.com/how-to-use-influencer-marketing-
to-promote-your-events-5-tips-from-the-experts/
18
fact, 28.1 percent of marketers prefer to work with influencers mainly for events, for which they
should set up visually appealing, Instagram-worthy decor and prompt influencers to also create
pre-event and post-event content.50 For example, American Express and Bumble both partnered
with numerous influencers to amplify their presence at Coachella, which brought attention to
their perks and allowed them to fit into a “young, hip vibe.”51
Another type of engagement that has become popular in more recent years among brands
is to co-create special products or a product line in partnership with an influencer. This is another
method of engaging with influencers over a lengthier series of creative content rather than
through just a one-off post. According to The Drum, co-creation is “beneficial from a 360-degree
perspective,” as it not only maximizes influencer marketing but “can also improve product
development from a creative perspective.”52 In 2018, influencer Arielle Charnas, who has
263,000 followers on Instagram, launched a collection with Nordstrom that garnered over $4
million in sales in a single day.53 Clearly, this form of product or product line co-creation has the
potential to bring mutual value to both brands and influencers. As the engagement options like
these expand and new ones begin to take off, it’s important to think about how authenticity is
reflected in each type of model and which ones might work best for both for brands and
influencers and produce the best results based on the campaign goals.
For a long time now, companies have sent products to journalists for them to review and
write about, and the same tactics are now being used with bloggers and influencers. Many brands

50 Ibid.

51 Mediakix. “4 Ways That Brands Market with Influencers.”

52 Tabor, Emilie. “14 Reasons Why Influencer Co-Creation Is the Way Forward in Influencer Marketing.” The
Drum, December 3, 2019. https://www.thedrum.com/opinion/2019/12/02/14-reasons-why-influencer-co-creation-
the-way-forward-influencer-marketing.

53 Ibid.
19
send out free products to smaller-scale influencers with the hopes that they will recommend and
post about it.
For example, in 2018, Dr. Jart, a skin-care startup, actively scouted Instagram for
influencers to send free products to, many times with no strings attached.54 NYMag describes
how those with large followings on social media post about products, “begging for
replacements.,” and brands like Dr. Jart happily comply, in hopes that influencers will post
content recommending their products.55 It makes financial sense for brands to give out free
products like this, as they get access to inexpensive creative content and a mass of new
followers, but the practice of giving away free products to influencers has become so
commonplace that now, new issues have begun to emerge. The New York Times reported on the
proliferation of scammers, who are pretending to be influencers and requesting free products.56
These impersonation schemes are ultimately the result of the growth of these gifting efforts by
brands.57 The fluidity in pricing and such gifting efforts can lead to the emergence of issues,
some of which are introduced in the next section and expanded upon in following sections.

The Underlying Ethical Issues
Kimberly Smith, who runs the popular online blog, Penny Pincher Fashion, says that
influencer marketing has grown so rapidly because people would rather get “ads” in the form of

54 Wassus, Kenny. “How Influencers Get Free Cosmetic Products, and You Can Too!” Intelligencer. New York
Magazine, June 26, 2018. http://nymag.com/intelligencer/2018/06/how-influencers-get-free-cosmetic-products-and-
you-can-too.html.

55 Ibid.

56 Lorenz, Taylor. “Brands Beware: Influencer Impostors Want Your Free Stuff.” The New York Times. The New
York Times, September 20, 2019. https://www.nytimes.com/2019/09/20/style/instagram-influencer-fraud.html.

57 Ibid.
20
posts by individuals they follow, as it feels more real and authentic than a TV commercial or
magazine spread.58 Smith’s perspective demonstrates that even influencers understand that they
are seen as more trustworthy than traditional ads, and they recognize the need to differentiate
themselves from other forms of advertising that can appear highly manufactured. Similarly,
Melody Cheng, co-host of the podcast “Asian Boss Girl” and influencer in the Asian American
creative community, notes that advertising dollars are continuously moving toward influencer
marketing because it “feels more organic in comparison to a traditional ad.”59 According to
Cheng, influencers tend to know how to speak to their audiences in a unique way that appeals to
them, and people generally appear more trustworthy than brands. It is evident that influencers
themselves recognize their inherent value.60
But it seems that over the past couple of years, some of that trust and appeal has eroded,
and influencer marketing has faced its fair share of controversies. Cheng describes how social
media users now despise the word “influencer.” “It’s a very cringe term. Most influencers I
know overvalue themselves and now, when people introduce themselves to me as an
‘influencer,’ I want to ask them—what exactly do you have ‘influence’ over?”61 The influencer
sphere has become rife with individuals who seem to just be in it for the fame and monetary
benefits.
Cindy Yang, an Instagram “foodie” influencer that runs the Instagram account
@mishxcindy, explains that because people are aware of the “perks” that come with being an

58 Smith, Kimberly. Interview by author, November 6, 2019.

59 Cheng, Melody. Interview by author, November 3, 2019.

60 Ibid.

61 Ibid.

21
influencer, such as free products and the celebrity lifestyle, the industry has become somewhat
oversaturated.62 For Yang, she began her blog years ago as a side passion just by taking photos
of her food, without any expectations of garnering a large following.63 Now, she says, “It’s hard
to differentiate between who is in it for the perks versus who is genuinely passionate about what
they are posting.”64
Even if the business side of influencer marketing continues to flourish as partnerships
remain lucrative sources of income for influencers and engagement models expand, the practice
continues to face obstacles. There are two prominent ethical issues that the industry is grappling
with, which will be explained in the following sections of the paper. The first is the prevalence of
influencer fraud—the practice of influencers inflating the number of followers and engagement
rates, which is causing brands to lose on their investments. Another is the lack of transparency of
the promotional nature of posts and content, despite the clear guidelines put forward by the
Federal Trade Commission (FTC).

Part IV: Influencer Fraud: Fake It ‘til You Make It
In 2018, Mediakix conducted an experiment in which they created two fake influencer
accounts on Instagram.65 The company wanted to prove how easy it could be to become a
seemingly successful influencer through unethical means. For one of the accounts, they hired a
fake model to create a persona under the name “Calibeachgirl,” a lifestyle and fashion

62 Yang, Cindy. Interview by author, November 15, 2019.

63 Ibid.

64 Ibid.

65 Mediakix. “How to Be an Instagram Influencer For $300: A 2-Month Study.” Mediakix, October 7, 2019.
https://mediakix.com/blog/fake-instagram-influencers-followers-bots-study/.

22
influencer.66 They bought followers and engagement and practically became an influencer
“overnight,” scoring two brand deals after “artificially inflating clout.”67 Mediakix’s experiment
demonstrates just how easy it can be to become an influencer by cheating the system and
falsifying social media fame.
Buying followers, likes and comments aren’t a new practice, but these instances of fraud
are difficult to control because of the quick-evolving nature of social media. It became a
problematic issue because many brands use followers as the primary metric in deciding the
effectiveness of influencers and select influencers to work with based predominantly on their
follower count. According to AdWeek, “as long as the industry uses follower count as a
threshold, fraud will be rampant.”68
When online retailer A Good Company launched a campaign including 4,000 influencers,
it did not get the expected sales boost. The company sent out an anonymous survey to
influencers in which two-thirds of them admitted to buying followers in the past.69 Similarly,
HyperAuditor, an analytics firm also did a study investigating 1.84 billion Instagram accounts
and reported that more than half had bought followers.70 Clearly, the influencer marketing

66 Ibid.

67 Ibid.

68 Pearl, Diana. “How Brands Are Combatting Influencer Fraud in an Ever-Changing Social Landscape.” AdWeek.
AdWeek, August 26, 2019. https://www.adweek.com/brand-marketing/how-brands-are-combatting-influencer-
fraud-in-an-ever-changing-social-landscape/.

69 Kapner, Suzanne, and Sharon Terlep. “Online Influencers Tell You What to Buy, Advertisers Wonder Who's
Listening.” The Wall Street Journal. Dow Jones & Company, October 21, 2019
https://www.wsj.com/articles/online-influencers-tell-you-what-to-buy-advertisers-wonder-whos-listening-
11571594003?fbclid=IwAR0kgAZpnRa9NV25-Lk8fvjX7UnDC_gnrounJjR-KyeUlYfovAM1Ufqq0qY.

70 Ibid.

23
industry is facing a problem with influencers falsifying their influence. Brands aren’t getting the
eyeballs they are paying for.

A Real Problem for Brands
When brands pay for traditional advertising like billboards or TV ad spots, they are
generally cognizant of how many real people will see it. Most advertising data is audited and
standardized when it comes to pricing. However, with influencers and social media, brands can’t
be too sure on the metrics, as followers and engagement can be bought and falsified. A study
published by Cheq and the University of Baltimore noted that marketers lose approximately $1.3
billion annually due to influencer fraud, and Mediakix reported that 18 percent of spending on
influencer marketing is wasted every year.71
The Global Cosmetics Industry published a report that highlighted how influencer fraud
is affecting the year-over-year earned media value of beauty brands. Earned media value (EMV)
is a metric that quantifies the value of publicity gained through digital earned media and their
respective media values. The study found that influencer fraud is causing a significant drop in the
EMV of top beauty brands such as Anastasia Beverly Hills, MAC and Morphe.72
Therefore, many other brands are rethinking their marketing strategies due to the
prevalence of fraud in the influencer space. For example, Unilever was one of the first big-name
brands to recognize that fraud was undermining influencer marketing. The brand realized that
this was a problem and publicly vowed to not work with influencers who had fake followers or

71 Pearl. “How Brands Are Combatting Influencer Fraud in an Ever-Changing Social Landscape.”

72 Latimer, Audrey. “Influencer Fraud Is Affecting More Brands Than You Think.” Global Cosmetic Industry,
August 30, 2018. https://www.gcimagazine.com/marketstrends/channels/onlinetv/Influencer-Fraud-is-Affecting-
More-Brands-Than-You-Think-492104251.html.

24
engagement, while advocating for the need of increased transparency to make influencer
marketing a more sustainable practice.73 In fact, this past year, Unilever invested in an influencer
marketing software platform CreatorIQ, which develops solutions to “empower” the influencer
marketing industry and aims to help brands drive results through artificial intelligence.74
Unilever is making active efforts to improve the influencer marketing practice and is attempting
to engage with influencers in ways that encourage ethical behavior. The company surely
recognizes that influencers are “still influential in driving consumer opinion”; however, it
believes that more accountability is needed, especially for brands to feel completely confident in
their investments.75
Other brands, like beauty subscription service Ipsy, have reimagined influencer
marketing entirely due to fraud. Ipsy, a monthly beauty subscription service, was founded by
Michelle Phan, one of the most renowned and prominent beauty gurus that grew an immense
following on YouTube. Business of Fashion noted that Ipsy grew quickly and reached a $500
million revenue, “thanks to the hype of beauty influencers and bloggers.”76 Ipsy was once a
leader in the influencer marketing sphere, and Fast Company praised Phan for “reinventing the

73 Weed, Keith. “When It Comes to Influencer Relationships, It's Complicated.” Unilever global company website,
July 23, 2018. https://www.unilever.com/news/news-and-features/Feature-article/2018/when-it-comes-to-influencer-
relationships-its-complicated.html.

74 Glenday, John. “Unilever Invests in Influencer Platform CreatorIQ to Bolster 'Integrity' of Industry.” The Drum.
The Drum, June 12, 2019. https://www.thedrum.com/news/2019/06/12/unilever-invests-influencer-platform-
creatoriq-bolster-integrity-industry.

75 Ives, Nat. “Unilever Invests in Influencer Management Company CreatorIQ.” The Wall Street Journal. Dow Jones
& Company, June 11, 2019. https://www.wsj.com/articles/unilever-invests-in-influencer-management-company-
creatoriq-11560274973.

76 Bloomberg. “Ipsy's $500 Million in Revenue Is Driven by Influencers.” The Business of Fashion. The Business of
Fashion, September 26, 2019. https://www.businessoffashion.com/articles/news-analysis/ipsys-500-million-in-
revenue-is-driven-by-influencers.

25
cosmetics industry” through influencer marketing.77 However, the company has since pulled
back on influencer efforts and partnerships.
According to the Wall Street Journal, Ipsy is questioning whether or not influencers are
“worth the cost,” and is instead, “recruiting its own consumers to post—for free.”78 Because
many mega-influencers and macro-influencers falsify their prominence through follower
numbers that may not accurately reflect the genuine size of their audience, the company
repeatedly failed to see the desired returns on their influencer marketing tactics. Ipsy has
revamped its strategy and scaled back on investments. Instead, Ipsy is devoting their marketing
budget to digital ads,79 which can offer more transparency in terms of the number of eyeballs and
clicks. And, like many other brands, Ipsy is reorienting toward other forms of referral marketing.
However, even if more intimate forms of referral marketing—utilizing customers and nano-
influencers—are becoming more popular, fraud continues to persist in the influencer marketing
space.

How Fraud Propagates
InfluencerDB, an influencer marketing cloud service, studied engagement rates as “likes
as a percent of followers” and found that engagement is decreasing year-over-year.80 Avinash

77 LaPorte, Nicole. “How Ipsy Founder Michelle Phan Is Using Influencers to Reinvent The Cosmetics Industry.”
Fast Company. Fast Company, February 26, 2016. https://www.fastcompany.com/3054926/how-ipsy-founder-
michelle-phan-is-using-influencers-to-reinvent-the-cosmeti.

78 Kapner, Suzanne, and Sharon Terlep. “Online Influencers Tell You What to Buy, Advertisers Wonder Who's
Listening.”

79 Ibid.

80 Ehrhardt, Janna. “Influencer Marketing Benchmarks Report 2019 - Engagement Metrics for Influencer Marketing
Success.” InfluencerDB, November 18, 2019. https://influencerdb.com/blog/influencer-marketing-benchmarks-
2019/.

26
Kaushik, a digital marketer and entrepreneur, highlights the reasons for this decline and
speculates that audiences may no longer see influencers as organic or authentic, and there is an
increase in fake followers across the board.81 Because of these fake followers and bot accounts,
actual activity through likes and comments is decreasing, and traditional influencers with large
followings continue to see low engagement percentages.82
Even so, buying followers appears to be a sound investment for influencers.
Cybersecurity firm GoSecure looked into the cost of buying followers and noted that “scams cost
very little.” Purchasing 1,000 YouTube subscribers would cost only $49, and buying 1,000
Instagram followers costs even less—only $16.83 As unethical as it is, the rewards for buying
followers can be massive, as brand deals can pay thousands of dollars. For influencers, it can be
very much worth it, as higher follower numbers can help them stand out in a saturated market.
The increasing prevalence of online bot services only propagates the issue further, as influencers
can instantly receive thousands of followers with a click.
Additionally, most brands and influencers tend to partner just for short-term one-off
deals, which means that typically, brands pay influencers for posting one time and keeping the
content up for a certain duration of time.84 Because these types of partnerships are simple, short
and often come with a low risk for brands, many companies may not have the motivation to
conduct in-depth research on the influencers they choose to work with. According to Freddy

81 Kaushik, Avinash. “Influencer Marketing Rocks!” The Marketing Analytics Intersect.

82 Ibid.

83 Kapner, Suzanne, and Sharon Terlep. “Online Influencers Tell You What to Buy, Advertisers Wonder Who's
Listening.”

84 Wissman, Barrett. “Long-Term Partnerships: The Next Wave of Influencer Marketing.” Forbes. Forbes Magazine,
October 9, 2018. https://www.forbes.com/sites/barrettwissman/2018/10/09/long-term-partnerships-the-next-wave-
of-influencer-marketing/#2260bd0a469a.

27
Tran Nager, a professor at the University of Southern California Annenberg School for
Communication and Journalism, many brands place too much value on the numbers.85
Companies and agencies select influencers based heavily on metrics such as followers and reach,
when it’s become apparent that this data can be falsified. As long as influencers are selected for
these short-term deals based on algorithmic models and vanity metrics, it will be difficult to
eliminate fraud will on influencer-dominant platforms.
Yet, some platforms have initiatives in place that attempt to mitigate this fraud. Instagram
periodically purges accounts to remove bots. However, it may not necessarily be in the best
interest for these platforms to attempt to prevent fraud, as the growth of content and influencers
on their platform fuels the number of users and keeps people on Instagram for longer. Because
Instagram is heavily reliant on advertising dollars, the more eyeballs and users they can boast,
the better. In the end, it may not be up to the platforms to solve these issues of fraud. Mark
Zablow, the CEO of marketing agency Cogent Entertainment, said, “To be proactive about
tackling influencer fraud, it takes more than looking out for the standard warning signs.”86
Marketers may play a bigger role in tackling fraud. So, what are agencies and brands doing to
deal with it?

Technology as a Solution
Scott Guthrie, the former digital director of influencer relations at Ketchum, outlined
some of the signs of influencer fraud. Sudden spikes in follower numbers, low-quality followers,
low engagement rates, followers in surprising countries or a bad ratio of content published to

85 Nager, Freddy Tran. Interview by author.

86 Pearl. “How Brands Are Combatting Influencer Fraud in an Ever-Changing Social Landscape.”

28
number of followers are all potential red flags.87 Now, there are some technological solutions
that are meant to tackle the widespread issue of influencer fraud and give brands more control
over their partnerships.
Tyler Stevens, founder of interior design media brand Kinwoven and manager of
influencer LiveYourStyle, notes that for many of these fraudulent influencer profiles, they have
this “big fall from grace” when platforms rid of fake accounts, so in the long run, fraudulent
growth is not sustainable and is bound to backfire.88 Especially as technology continues to
develop, those influencers with fake followers will soon find it increasingly hard to score brand
deals.89
One technological initiative is being spearheaded by Social Chain, an integrated social
media marketing company that has launched an artificial intelligence tool called Like-Wise. The
founder of Social Chain Steve Bartlett explains, “The industry is home to one of the most
elaborate and widespread scams in the history of marketing.”90 He told Campaign Live, “There
are major brands paying some people thousands of pounds for fake influencers to be flown
around the world, when they literally have zero influence. Zero.”91 That’s why Bartlett felt
compelled to create an innovative tool that could adequately detect fraudulent activity to protect

87 O'Neill, Jake. “The Ethics of Influencer Marketing: How Fake Followers and Influencers Can Damage Your
Brand.” PR Week (Sep 07, 2018): 55. http://libproxy.usc.edu/login?url=https://search-proquest-
com.libproxy2.usc.edu/docview/2100132779?accountid=14749.

88 Stevens, Tyler. Interview by author, November 15, 2019.

89 Ibid.

90 Social Chain. “Wise: You Can't Filter the Damage of Influencer Fraud.” LikeWise, 2018. https://www.like-
wise.co/.

91 Oakes, Omar. “'The Follower Number Means Nothing': New Tool Aims to Help Marketers Root out Influencer
Fraud.” Campaign. CampaignUK, December 4, 2018. https://www.campaignlive.co.uk/article/the-follower-number-
means-nothing-new-tool-aims-help-marketers-root-influencer-fraud/1495357.

29
marketers and brands. The company “has built a database of fake accounts and related
behaviors” and “can distinguish between different types of influencer-audience interactions to
assess if they’re fake or not.”92
Even though tools like these seem incredibly promising, they need resources to develop
and accumulate data to be effective, and it will take time for a foolproof system to develop. The
current model of influencer marketing lacks integrity—influencer fraud has propagated for years
and has clearly had a snowballing negative effect on brands aiming to partner with influencers.
Aside from the technological developments, I believe there are some best practices that
marketers and influencers can engage in to reclaim some authenticity and present a promising
and ethical future for influencer marketing. The industry overall has to move away from using
follower counts and engagement numbers as the primary metric to select influencers.

Part V: A New Approach: Quality Over Quantity
Brands today have diverse approaches when it comes to influencer relations and often use
varying strategies to tackle different parts of the purchase funnel. As new platforms and media
forms surface, brands and agencies have attempted to embrace and adapt to new creative
methods of using influencers in their campaigns. The digital sphere is quick to change, and
brands and agencies must widen their scope to think about the influencer marketing model
differently.

92 Freier, Anne. “Social Chain Launches Like-Wise to Combat Influencer Follower Fraud.” Business of Apps,
October 11, 2018. https://www.businessofapps.com/news/social-chain-launches-like-wise-to-combat-influencer-
follower-fraud/.
30
This section will dive into how brands can shift their methods of screening for influencers
by focusing more on qualitative factors rather than the quantitative ones, which in turn, may help
the overall industry tackle issues of fraud.

Beyond Just the Numbers
Daniel Wellington is an online retailer watch brand that has a hefty influencer marketing
strategy and strong presence on Instagram. The brand has chosen to focus its digital marketing
heavily on partnerships with a wide variety of influencers. Carlye Burchell, head of marketing at
Daniel Wellington and influencer marketing expert, explains that Daniel Wellington was one of
the first in the influencer marketing space.93 She describes influencer marketing as the
combination of a trusted platform and low cost, which has caused many brands to jump on the
trend. Burchell recognizes that the influencer market has become oversaturated, but she still
perceives influencer marketing to be especially promising for brands.94 Over the years, Daniel
Wellington has shifted their strategy to make the most of “mutually beneficial relationships”
with the brand’s influencers, and Burchell believes that influencers will always be a core part of
Daniel Wellington’s marketing.95
Burchell says, “When we first started influencer marketing, there were no influencer
insights. But now, we have the tools to know the actual reach we are getting and who we are
targeting.”96 However, as much as the numbers matter, Burchell recognizes the importance of

93 Burchell, Carlye. Interview by author, November 19, 2019.

94 Ibid.

95 Ibid.

96 Ibid.

31
understanding key demographics, which allows brands like Daniel Wellington to go after
specific markets and produce more targeted messaging, which her team is actively trying to
accomplish.97 The brand has recently launched a campus program to reach college students in
the U.S. in which Daniel Wellington partners with influential students on various campuses and
has found this to be a successful strategy in reaching that specific demographic.98
Like Daniel Wellington, brands should move to a more community-oriented structure of
social media influencer marketing. They need to look past the simple quantitative data and
conduct more qualitative research in order to produce meaningful partnerships and influencer
content that resonates with the right audiences. Fraud propagates because of an overwhelming
focus on numbers like engagement and follower count. If influencers were selected based more
on their content, relevancy to certain audiences and congruence with the brand rather than
follower account and reach, higher quality partnerships would emerge.
Evan Asano, the founder and CEO of Mediakix, explains that brands need to do more in-
depth research to make sure branded influencer campaigns are impactful; he encourages brands
to “do their due diligence to ensure that partnerships with influencers are a good match.”99 Asano
emphasizes the importance of brands partnering with those who possess values that align with
the brand.100 Ultimately, influencers need to be qualitatively researched and selected based on
how their content and image will fit with the brand’s identity. This, in turn, can make
partnerships appear more organic and seamless.

97 Ibid.

98 Ibid.

99 Asano, Evan. Interview by author, November 11, 2019.

100 Ibid.

32
USC Annenberg’s Freddy Tran Nager agrees with the need for more values-based
research and notes that influencers need to be the optimal fit based on sentiment and not just the
numbers. “Influencers should not be picked by computer algorithms. That opens the way to fraud
and empty advertising,” he explains.101 Instead, he encourages brands to think about the value
that each influencer brings. “What are you getting besides reach? How is your influencer doing
more for you than another ad would?”102 In a study conducted by BazaarVoice, 47 percent of
respondents selected the repetitive nature of influencer content as the top customer concern
around influencer marketing, and 55 percent of respondents noted that influencer content is too
materialistic.103 With influencer marketing, brands have the opportunity to leverage creativity
and differentiate themselves. Each influencer has a certain meaning and value that they can bring
to the brand, and this should be studied prior to embarking on deals with influencers so that
companies can get the most out of the partnerships. A purely numbers-focused approach, on the
other hand, can lead to increasing disinterest from audiences.
Nager believes that broadening the definition of “influencer” can lead to the formulation
of more targeted influencer strategies and partnerships.104 “Influence varies and is situational,
more community-based. Marketers should conduct more community-based research. Then, they
should think about who influences those communities,” he explains.105 For example, if a

101 Nager, Freddy Tran. Interview by author.

102 Ibid.

103 BazaarVoice. “Content Called out; 47% of Consumers Fatigued by Repetitive Influencers.” BazaarVoice, August
2, 2018. https://www.bazaarvoice.com/uk/press/content-called-out-47-of-consumers-fatigued-by-repetitive-
influencers/.

104 Nager, Freddy Tran. Interview by author.

105 Ibid.

33
campaign is attempting to reach voters in East Los Angeles, a social media influencer may not be
the best way to capture the attention of that audience. The church or a community leader might
be the optimal “influencers” to consider.
Over recent years, brands and agencies have oversimplified the very notion of influencer
by judging them based on social media followers and simple metrics like follower count and
engagement rates. Although in-depth qualitative research on influencers can indeed involve more
labor for marketers, I believe the payoff can be greater. Marketers should go beyond what seems
scalable and invest time on figuring out which influencers can speak to audiences in meaningful
and unique ways and how select partnerships can be leveraged to do so.

The Smaller the Better?
Likewise, Robert Kozinets, a professor at the University of Southern California
Annenberg School for Communication and Journalism, describes how the current quantitative-
focused model of influencer marketing makes it homogeneous. “That’s why so much money
keeps flowing to the Kardashians. It’s like all roads lead to Calabasas,” he points out.106 Kozinets
offers another approach that may bring higher returns to marketers; he explains that brands may
want to look into “more niche groups,” as working with a hundred nano-influencers “can be
more effective” than working with just the big names with millions of followers, especially if the
micro-influencers or nano-influencers are more aligned with the brand.107
When skincare brand Origins first emerged into the influencer marketing space, it ran a
campaign titled #MyPerfectWorld, which featured just nine micro-influencers who would help

106 Kozinets, Robert. Interview by author, November 19, 2019.

107 Ibid.
34
launch three new products. The brand was looking to embrace “accessibility, approachability and
authenticity” by working with smaller-scale influencers.108 Origins notes that influencers with
low and moderate follower numbers actually tend to foster more engagement and do not
command “astronomical fees.” The campaign costed lower sums for each influencer, in
comparison to the hundreds of thousands that mega-influencers often ask for.109
In contrast to mega-influencers, micro-influencers and nano-influencers are seen more as
“everyday people” or subject matter experts. An article by influencer marketing software
company IZEA states that micro-influencers are “great for brands with smaller budgets who are
ready to jump into the influencer marketing space” and for reaching more specific audience that
brands may have trouble reaching otherwise.110 Carlye Burchell sees the benefit of smaller-scale
influencers in serving as “brand awareness builders”—Daniel Wellington often asks them to post
throughout the year to keep their brand “top of mind,” even among niche groups.111 Audiences
see them as more approachable figures that are a part of a close-knit community.112 And this
perception is incredibly beneficial. The 2019 Edelman Trust Barometer reported that 61 percent
of people find information from “a person like me” to be credible or very credible, which
indicates the unique value of micro-influencers that brands may be keen on leveraging.113

108 Strugatz, Rachel. “Origins Taps Micro-Influencers.” WWD. WWD, March 27, 2017. https://wwd.com/beauty-
industry-news/skin-care/origins-estee-lauder-taps-micro-influencers-for-a-perfect-world-10852421/.

109 Ibid.

110 IZEA. “The Ultimate Guide to Influencer Marketing.” IZEA, October 22, 2019.
https://izea.com/2017/06/12/micro-influencers-101/.

111 Burchell, Carlye. Interview by author.

112 Pusztai, Heather-Mae. “Why Micro-Influencers May Be the Most Effective Influencer Marketing Strategy.”
Resources, July 23, 2019. https://buffer.com/resources/micro-influencers.

113 Edelman, 2019 Edelman Trust Barometer. https://www.edelman.com/sites/g/files/aatuss191/files/2019-
02/2019_Edelman_Trust_Barometer_Global_Report.pdf

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Mega-influencers and macro-influencers boast impressive reach, which is why they
appear appealing to brands. However, micro-influencers and nano-influencers “can round out the
story with more tailored and authentic content that helps to drive relevance.”114 It seems that
nano-influencers may be more beneficial to partner with to tackle the lower aspects of the sales
funnel. They may not have the largest audiences, but they can speak to those who actually care
about the specific industry. In fact, nano-influencers can have higher engagement rates of 5 to 10
percent, compared to just 1 to 2 percent for most mega-influencers.115 Most of the time, nano-
influencers’ followers are more invested in their content and are not just following them because
of their status; many have intimate relationships with their audiences, so much so that they often
reply to messages from their followers.116
Glossier is an online beauty brand that has garnered a “fanatical following” through “a
curious alchemy of market research” and “calculated intimacy.”117 The brand launched on
Instagram and was initially reliant on Instagram for promotion. But according to Buzzfeed News,
Glossier’s real innovation was “using the tools of the social web to turn readers into followers
and followers into brand evangelists, unpaid product advisers, and, maybe, something like a
community, albeit one that buys things from you.”118 Glossier’s key message is that everyone is

114 Earned Media Rising. “How Nano-Influencers Punch above Their Weight.” Earned Media Rising, September 3,
2019. https://www.earnedmediarising.com/?p=7173#.

115 Ibid.

116 Keoghan, Sarah. “These Social Media Influencers Probably Have as Many Followers as You.” The Sydney
Morning Herald. The Sydney Morning Herald, May 2, 2019. https://www.smh.com.au/lifestyle/health-and-
wellness/these-social-media-influencers-probably-have-as-many-followers-as-you-20190502-p51jbh.html.

117 Tiku, Nitasha. “Inside Glossier, The Beauty Startup That Reached Cult Status By Selling Less.” BuzzFeed News.
BuzzFeed News, August 25, 2016. https://www.buzzfeednews.com/article/nitashatiku/inside-glossier-the-beauty-
startup-that-just-happens-to-sell.

118 Ibid.

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an influencer. With over 500 ambassadors, Glossier is able to leverage word-of-mouth through a
peer-to-peer strategy. Ambassadors—many who can be identified as nano-influencers—make a
small commission and earn credits toward future purchases based on how many sales they
facilitate. Overall, the brand is focused on making the consumer, the commodity, which can
seem dehumanizing at first glance. But in my personal opinion, this strategy seems rather
empowering. Everyday customers can now take an active role in promoting the brand to their
networks and can reap financial and publicity benefits for doing so. Glossier’s Instagram page is
filled with many of customers’ photos that have been reposted. By encouraging user-generated
content and “democratizing conversations” around their brand, Glossier puts regular people “at
the heart of the growth strategy,”119 which has helped the brand develop a loyal cult following—
one that appreciates the brand’s more grounded approach.
Instead of partnering with one mega-influencer, brands that hope to implement messaging
that resonates to specific niche audiences should consider following in Glossier’s steps working
with multiple smaller-scale influencers, as this strategy may prove more cost-effective and
community-based. Audiences are attracted to brands and influencers who appear to care about
their perspectives and interests, just as Glossier has demonstrated. Influencer marketing should
be more focused on forming and sustaining communities, as well as increasing the credibility of
and positive attitudes toward the brand through word-of-mouth, which can be done through
partnerships with nano-influencers or everyday consumers.
A potential drawback to nano-influencers is that brands that are aiming to reach niche
audiences will likely need to work with a higher number of influencers to attain the same

119 Valle, Gaby Del. “Treating Regular People like Influencers Is the Key to Glossier's Success.” Vox. Vox, January
15, 2019. https://www.vox.com/the-goods/2019/1/15/18184151/glossier-emily-weiss-marketing-strategy-recode.

37
exposure that a mega-influencer would bring. However, nano-influencers who are fans of the
brand may be willing to collaborate in an organic way without monetary compensation, as “free
products are viewed as fair compensation,”120 which could allow brands to devote a larger chunk
of their marketing budgets into other forms of advertising.
So how can brands find meaningful small-scale influencers to work with? Earned Media
Rising, a blog by Cision and PR Week, suggests that brands and agencies should scan social
media, forums and online communities to study trends and look at where high-quality
conversations take place.121 By conducting these online scans, marketers can find the true
influencers who are leading conversations on social media and may be able to provide the most
value in partnerships. This type of sentimental analysis is at the core of selecting influencers at
varying levels depending on campaign needs and leveraging an impactful, more holistic
influencer marketing strategy.

Achieving Organic Growth
Influencer fraud clearly demonstrates that many influencers are desperate for growth and
want to stand out through their numbers. In an industry that overemphasizes the value of the
vanity metrics, many influencers are drawn to shortcuts to attain the numbers. However, there
are, in fact, many ways to achieve organic growth that will lead to more long-term success.
Kinwoven’s Tyler Stevens gives some tips on how influencers can organically and
authentically grow their presence on social media. Stevens says the best way to grow is through

120 Maheshwari, Sapna. “Are You Ready for the Nanoinfluencers?” The New York Times. The New York Times,
November 11, 2018. https://www.nytimes.com/2018/11/11/business/media/nanoinfluencers-instagram-
influencers.html.

121 Earned Media Rising. “How Nano-Influencers Punch above Their Weight

38
collaborations from similar accounts.122 His wife, Sharrah Stevens, is an interior design and
home decor influencer who runs the blog and YouTube channel, LiveYourStyle. “For our
collaborations, we’ll go to other influencers’ homes and decorate their houses. These types of
cross-promotions help us reach new and mixed audiences. The followers are authentic, and they
stay around,” Stevens explains.123 Collaborations should speak to both influencers’ overlapping
interests and passions to capture the interests of the mixed audiences.
Stevens also advocates for social media giveaways, which leverage the shareability of
content and encourage electronic word-of-mouth. For example, his wife recently launched a
giveaway in partnership with consumer electronics company LG, in which the brand offered to
give 20 vacuums to give away to audiences. “This was a really cool partnership because we got
to give back to our audience directly, and it was one of our biggest successes for us, the brand
and our viewers. Audiences who received the vacuums tagged us in it on their own social media
pages and told us how much they loved it,” he describes.124 Stevens notes that sponsored content,
when done right, should foster two-way communication and connect influencers to their
audiences on a deeper level. He highlights that giveaways can help influencers reach more
widespread audiences through chains of shared content and can usually make ads more well-
received.125
Buying followers is appealing because it boosts the numbers for a short period of time
and can indicate an increase in worth for an influencer. However, it is not a sustainable strategy
in continuous growth, especially as brands and audiences are becoming more cognizant of these

122 Stevens, Tyler. Interview by author.

123 Ibid.

124 Ibid.

125 Ibid.
39
fraudulent practices. In turn, influencers should look to more authentic strategies like
collaborations and giveaways, like Stevens and his wife do, to grow and appeal to larger
audiences and to gain a more prominent foothold in their respective industries.
Despite the prevalence of fraud, influencers have opportunities to test out other reliable
methods that will help them develop closer ties to their audiences and allow them to grow
organically. Although technology will take time to develop, and it may be impossible to
eliminate fraud completely, brands and influencers can shift their approaches to encompass a
more holistic and qualitative view of the influencer marketing practice, which will help take the
pressure off of influencers to have high follower counts. Marketers and influencers can
implement organic growth strategies like collaborations and giveaways that will likely lead to
real, more engaged audiences.
Aside from fraud, however, the influencer marketing practice is still far from perfect.
There is yet another, more confusing problem that the influencer marketing practice continues to
face—the lack of proper disclosure.

Part VI: To Disclose or Not to Disclose?
In my personal opinion, most consumers expect to know when they are presented with an
ad. However, it’s not always clear when it comes to branded content and influencer sponsored
content. In 2017, Mediakix reported that only about 7 percent of endorsements on social media
from the top 50 influencers complied with the guidelines of appropriate disclosure practices,126
and I believe it’s still an underlying issue that has gone largely unsolved. In fact, a 2019 Harvard

126 Mediakix. “93% Of Top Celebrity Social Endorsements Violate FTC Rules.” Mediakix, May 31, 2017.
https://mediakix.com/blog/celebrity-social-media-endorsements-violate-ftc-instagram/.

40
Business Review study reported that 28 percent of influencers were actually requested by the
sponsoring brand not to disclose the partnership.127 Because it may appear advantageous for both
brands and influencers if the content fits organically and seamlessly without the intrusiveness
that comes with sponsored content, these entities may not have the motivation to be completely
transparent to their audiences.
For an industry that has been thriving due to its perceived authenticity, it’s quite ironic
that problems with disclosure have become so prolific and commonplace. It seems that the
ability to deceive has somehow become tied to an influencer’s worth. This section will expand
on the FTC guidelines and the nature of branded content, moving into why influencers may not
feel inclined to disclose and subsequently, how consumers might feel about the lack of
transparency. The end of the section will explain some of the past attempts at regulating the
problems with disclosure, most which have been rather unsuccessful.

FTC Guidelines
The Federal Trade Commission is a government agency that aims to protect the interests
of consumers from unlawful business practices.128 The organization first published “.com
Disclosures” in 2013, outlining laws related to commercial activities online. These laws state that
advertisers need to incorporate relevant and qualifying information onto the ad itself and
disclosures must be “clear and conspicuous.”129 Scrolling should not be necessary to find the

127 Audrezet, Alice, and Karine Charry. “Do Influencers Need to Tell Audiences They're Getting Paid?” Harvard
Business Review, August 29, 2019. https://hbr.org/2019/08/do-influencers-need-to-tell-audiences-theyre-getting-
paid.

128 “About the FTC.” Federal Trade Commission. https://www.ftc.gov/about-ftc.

129 Federal Trade Commission. United States. .com Disclosures: how to make effective disclosures in digital
advertising (2013). https://www.ftc.gov/sites/default/files/attachments/press-releases/ftc-staff-revises-online-
advertising-disclosure-guidelines/130312dotcomdisclosures.pd
41
disclosure, and it should be displayed prior to when consumers are prompted to purchase.
According to the FTC, “negative consumer experiences can result in lost consumer goodwill and
erode consumer confidence.”130
The FTC sent out an updated influencer-oriented version of disclosure guidelines in
2017. More than 90 letters were sent out, reminding both influencers and brands that they should
clearly and conspicuously disclose their relationships when products are promoted through social
media.131 The updated Endorsement Guides state that any material connection, which can be
payments or gifts, that could “affect the weight and credibility” must be disclosed.132 Typically,
influencers disclose with hashtags like “#ad” or “#sponsored.” The FTC notes that these hashtags
must be in the first three lines of the caption and must appear before the “more” button.133
Because rules weren’t being closely followed, the FTC posted an online reminder in late
2019, reminding influencers that any material connection to a brand must be disclosed in their
content. The reminder explains that transparency “allows viewers to weigh the value of the
endorsements” and tells influencers that it is their own personal responsibility to follow rules
against deceptive advertising.134 But this makes it unclear where to draw the line. It’s interesting
to think about how product placements are regulated, as the FTC doesn’t require disclosures for

130 Ibid.

131 Federal Trade Commission. United States. “FTC Staff Reminds Influencers and Brands to Clearly Disclose
Relationship.” Federal Trade Commission, December 21, 2017. https://www.ftc.gov/news-events/press-
releases/2017/04/ftc-staff-reminds-influencers-brands-clearly-disclose.

132 Ibid.

133 Ibid.

134 Federal Trade Commission. United States. Disclosures 101 for Social Media Influencers (2019).
https://www.ftc.gov/system/files/documents/plain-language/1001a-influencer-guide-508_1.pdf

42
product placements on television shows but specifies that endorsements needs to be accompanied
with a clear disclosure.135 Some influencers might not see this as fair.
Additionally, most influencers seem to be unaware of these specificities, and it is
incredibly difficult to regulate how these rules are being followed and enforce them. Although
the FTC has taken steps since then to remind influencers since the first release of these rules, it
has yet to take real action. Because of the lack of consequences in place, influencer content
continues to face many of the same ethical challenges that have come with branded content,
native advertising and product placements.

Branded Content or Deception?
Non-traditional online media sources, such as Buzzfeed, Refinery29 and Vice, have
paved the way for branded content and native advertising. Typically, branded content looks like
an editorial article but has been written to promote a product or a brand and exists at the
convergence of advertising and entertainment.136 It requires the collaboration between a media
company and a brand and differs from product placement because branded content integrates the
product directly into the storyline. If done well, the brand or product is seamlessly integrated into
the content to make it relevant to the readers’ interest and usually won’t be blatant like traditional
advertising is. On one hand, branded content works well for many brands. Consumers generally

135 Federal Trade Commission. “The FTC's Endorsement Guides: What People Are Asking.” Federal Trade
Commission, May 15, 2019. https://www.ftc.gov/tips-advice/business-center/guidance/ftcs-endorsement-guides-
what-people-are-asking#productplacements.

136 Mudge, Amy Ralph. “Native Advertising, Influencers, and Endorsements: Where Is the Line between Integrated
Content and Deceptively Formatted Advertising?” Antitrust, 2017. 80-84.

43
dislike intrusive advertising, but branded content may be able to mitigate these aversions, as it
isn’t as intrusive as typically advertising models.
Yet, despite its benefits, branded content can be seen as deceptive. Because it lies at the
intersection of earned media and paid media, audiences may not be aware of what is an ad and
what is not. The FTC rules state that advertising must be clearly identified and recognizable as
such. However, it also states that disclosure may not be needed if the commercial nature is so
obvious to the point where “no consumer could fail to recognize it.”137 This only adds to the
confusion, as there is no absolute rule, and the need for disclosure seems to be determined on a
case-by-case basis. The FTC guidelines, to some extent, lack specificity, which makes it difficult
to follow and to enforce. This is largely the same when it comes to the regulations and guidelines
that have been presented to influencers. The guidelines can be fairly ambiguous, and this has
amplified a lack of disclosure on sponsored content posted and put out by influencers. But are
there other reasons preventing proper disclosure?

Why Not Disclose?
It’s understandable why brands and influencers may not want to disclose sponsorships.
The first reason is due to apathy. eMarketer reported that 41 percent of influencers only disclosed
when asked by the brand, possibly because they don’t believe ramifications to be serious.138 The
second reason may be due to greed. Although influencers’ affiliate links do not satisfy proper
disclosure requirements, many influencers use this as a way to suggest partnerships and may be

137 Ibid.

138 eMarketer Editors. “Why Disclosure Is Essential When It Comes to Influencer Marketing.” eMarketer, February
14, 2018. https://www.emarketer.com/content/why-disclosure-is-essential-when-it-comes-to-influencer-marketing.

44
wary of disclosing further, as consumers may not feel as compelled to press on their links.139 The
third reason is ignorance. Despite the FTC’s efforts to educate influencers, many may not know
how exactly to comply. In a study with 800 influencers, 71.5 percent of influencers tried to
disclose but only 1 in 4 did so in compliance with FTC guidelines.”140
Eunjin Anna Kim, a professor at the University of Southern California Annenberg School
for Communication and Journalism, has conducted research on the complications of disclosure
with influencer content. According to Kim, disclosure does, in fact, prompt more unfavorable
responses to content, as people generally hold negative attitudes toward ads.141 However, if
people find out they are being tricked, their responses become “even more unfavorable.” She
says, “Either way, [brands] are sort of doomed.”142
Kim explains that sponsorship disclosures trigger persuasion knowledge, which means
that consumers understand that what they are seeing is ad content. However, recognizing that
content from their favorite influencer is an advertisement may create some sort of disconnect in
the minds of consumers and audiences.143 Typically, people follow influencers due to their
personal appeal, and the original purpose of Instagram was to serve as a platform on which
people could share personal aspects of their lives. The influencer culture changed this, as
Instagram became a platform for them to merge commercial messaging with the intimate

139 Mathur, Arunesh, Arvind Narayanan, and Marshini Chetty. “Endorsements on Social Media.” Proceedings of the
ACM on Human-Computer Interaction 2, no. CSCW (January 2018): 1–26. https://doi.org/10.1145/3274388.

140 Tobin, Jim. “Council Post: Ignorance, Apathy or Greed? Why Most Influencers Still Don't Comply with FTC
Guidelines.” Forbes. Forbes Magazine, May 1, 2018.
https://www.forbes.com/sites/forbesagencycouncil/2018/04/27/ignorance-apathy-or-greed-why-most-influencers-
still-dont-comply-with-ftc-guidelines/#2b8284e77e9d.

141 Kim, Eunjin Anna. Interview by author, November 13, 2019.

142 Ibid.

143 Ibid.
45
broadcasting of their lives. Because influencer marketing exists in between the personal and the
commercial, this can bring about complications when it comes to adequate disclosure and how
influencers should navigate the space.
Influencers also rely on perceived authenticity to build their audience. For many, this
authenticity comes from his or her intrinsic motivation—those that come from “a person’s innate
desires and passions.”144 Therefore, they may be wary of disclosing because it could potentially
seem like they are engaging with their audiences only to be compensated, and blatant ad content
may take away from their legitimacy, unique voice and style.
Even so, influencers may not have honest intentions with the partnerships they engage
in. For example, on an episode of NPR’s Hidden Brain podcast titled “Our Mental Space, Under
Attack,” micro-influencer Sue Tran, explained how she was sponsored by Google to post photos
around New York of her using a Google Pixel phone.145 In the posts, it appears like Sue “loves
her Google phone,” although Sue admits, “Don’t tell anyone. I’m still on my iPhone.”146
Clearly, there are influencers who prioritize the monetary benefits and deals over the
transparency they owe to their audiences. These influencers are likely aware that once consumers
see their extrinsic motivations of compensation or sponsorships, their attitudes toward the
influencer may become more unfavorable. Therefore, many, like Sue, continue to deceive their
audiences, engaging in sponsorships that aren’t genuine recommendations and not fully
disclosing. But the question remains—do consumers really care?

144 Audrezet, Alice, Gwarlann De Kerviler, and Julie Guidry Moulard. “Authenticity under Threat: When Social
Media Influencers Need to Go beyond Self-Presentation.” Journal of Business Research, 2018, 3.
https://doi.org/10.1016/j.jbusres.2018.07.008.

145 “Our Mental Space, Under Attack.” NPR. NPR, January 2, 2018.
https://www.npr.org/transcripts/574073721?storyId=574073721?storyId.

146 Ibid.
46

The Consumers’ Perspectives
Eunjin Anna Kim notes that consumers have a distaste for ads and want to believe that
influencers really care about the products they promote.147 Yet, her research shows that many are
getting smarter and may be able to tell what is an ad and what is not. Kim explains that audiences
now tend to assume that all kinds of posts are sponsored—whether they have proper disclosure
statements or not.148 If that is the case, is disclosure even necessary? Kim clarifies that yes, it is
still in the best interest of brands and influencers to disclose, since consumers value transparency
from influencers, although they don’t necessarily expect it.149 Typically, they don’t mind seeing
ads if it fits with the influencer’s content, but they expect them to be executed effectively and
ethically.
According to Kim, if audiences continuously feel like an influencer is deceiving them,
that will produce more long-term negative responses toward the influencer and brand.150
However, Kim also mentions that marketers and influencers are also getting smarter as well. She
anticipates that they may find loopholes to further trick consumers into thinking that something
is completely organic when in reality, it is an advertisement. The deception may very well get
more advanced.151
Robert Kozinets from USC Annenberg has a different take on influencer ad content,
equating it to “interruption-based advertising.” He explains, “In traditional media, you get media

147 Kim, Eunjin Anna. Interview by author.

148 Ibid.

149 Ibid.

150 Ibid.

151 Ibid.
47
content and have to sit through some advertisements. It’s the same thing with influencer
content.”152 Consumers understand that advertising comes with the content that they consume,
and Kozinets believes that most can easily tell what content is sponsored.153
However, even if consumers are getting more savvy, influencers can never be too careful.
Penny Pincher Fashion’s Kimberly Smith recognizes this and describes how she discloses both
when something is an ad and also when something is not an ad.154 Although she hates having to
do so, she “understands it comes with the territory” and believes that consumers benefit from this
transparency and appreciate knowing exactly what is a sponsorship and what is a genuine
recommendation.155
And Smith is right. In her research, Eunjin Anna Kim found that audiences “care about
the details of sponsorships.”156 Upon analysis of her research findings, Kim proposes that the
FTC and external organizations need to do a better job at educating consumers about how to
make educated purchase decisions, as FTC regulations remain difficult to enforce due to the
sheer number of influencers and posts.157 And even though it may be impossible for the FTC and
other legal entities to regulate every single sponsored post on every influencer’s account, this
does not mean that they aren’t trying to crack down on the lack of proper disclosure practices,
especially in recent years.

152 Kozinets, Robert. Interview by author.

153 Ibid.

154 Smith, Kimberly. Interview by author.

155 Ibid.

156 Kim, Eunjin Anna. Interview by author.

157 Ibid.
48
Attempts at Regulating
In 2019, nonprofit advocacy watchdog Truth in Advertising filed a complaint with the
FTC, claiming that Ryan ToysReview, a popular “kid-influencer” YouTube channel, was
deceptively promoting “a multitude of products to millions of preschool-aged children.”158 Ryan
ToysReviews features a 7-year-old named Ryan Kaji who reviews different kinds of toys. Truth
in Advertising argued that 90 percent of the content on the YouTube channel was promoting
products for kids under five, and the complaint alleged that the channel was specifically targeting
preschoolers who can’t differentiate content from “sponsored videos that often have the look and
feel of organic content.”159 It’s a positive sign that external entities are taking action, but this
kind of deception has been occurring for years without any concrete disciplinary measures, and it
goes beyond just toys.
The Kardashians have been at the forefront of the growth of influencer marketing, and
over their massive social media growth trajectory, they have produced content for brands such as
Puma, Sugar Bear Hair, FitTea, Jet Lux among others.160 Even so, they are hardly a gold
standard when it comes to disclosure. Five months after the FTC sent out letters outlining
disclosure guidelines in 2017, Truth in Advertising reported that more than 200 posts from the
Kardashian and Jenner family “flaunt the FTC’s guidelines.”161 In the selected posts,

158 Lukovitz, Karlene. “FTC Complaint Accuses YouTube 'Kidfluencer' Channel of Deceptive Advertising.”
MediaPost, September 5, 2019. https://www.mediapost.com/publications/article/340306/ftc-complaint-accuses-
youtube-kidfluencer-
channe.html?MessageRunDetailID=694925930&PostID=7749223&utm_medium=email&utm_source=rasa_io.

159 Ibid.

160 Kilkenny, Katie. “The Kardashians Still Aren't Disclosing Paid Ads on Instagram.” Pacific Standard, September
26, 2017. https://psmag.com/news/the-kardashians-keep-flaunting-ad-disclosure-regulations.

161 Truth in Advertising. “Kardashians Find New Ways to Skirt #Ad on Social Media.” Truth in Advertising,
September 25, 2017. https://www.truthinadvertising.org/kardashians-find-new-ways-skirt-ad-sponsored-social-
media-posts/.

49
Kardashians and Jenners “used vague language that the FTC disavows,” included disclosure
statements days or hours after the post went up or neglected to put any disclosure at all.162 The
FTC sent a letter to Popeyes regarding an Instagram photo of Kourtney Kardashian eating fried
chicken wings on a private jet without any disclosure on the post but did not actually impose any
consequences.163 Truth in Advertising sent a formal letter to the Kardashians’ legal team because
the FTC had been slow to act against these kinds of violations.164 If the Kardashians and Jenners
are regarded as some of the most prominent influencers, what kind of message is being sent to
influencers and brands if the Kardashians repeatedly manage to avoid penalty? Although the
influencer marketing industry has largely been a self-regulating one thus far, I believe that these
high-profile violations of disclosure guidelines by influencers demonstrate the need for more
official enforcement.
And the problems don’t end there. The lack of disclosure has also expanded to other
types of ads beyond product marketing. A 2020 Buzzfeed article discusses the newfound
prevalence of influencers partnering with and promoting presidential candidates on their social
media accounts—a new type of political advertising that is surfacing.165 The article notes the
various, rather inconspicuous ways that influencers will often “disclose.” “Sometimes an
influencer will simply tag a brand in the photo (does this mean they were paid to post? Or given
a free gift? Or just like the brand?). Sometimes they’ll write flowery language about ‘partnering’

162 Ibid.

163 Kilkenny, Katie. “The Kardashians Still Aren't Disclosing Paid Ads on Instagram

164 Ibid.

165 Notopoulos, Katie. “Instagram Influencer Marketing Is Already A Nightmare. Political Ads Will Make It a
Shitshow.” BuzzFeed News. BuzzFeed News, February 14, 2020.
https://www.buzzfeednews.com/article/katienotopoulos/instagram-influencer-marketing-is-already-a-nightmare.

50
with a brand or give out a discount code with their name on it. Or maybe they’ll just say, ‘thanks
@BRAND.’ Or maybe nothing at all!!!”166 Even with these consistent violations, “enforcement
has been pretty hands-off,” as “no influencer, not even a Kardashian, has ever faced official
action of penalty from the FTC.”167 As new forms of influencer marketing emerge, I believe
there needs to be more measures in place to stop and prevent the deceptive practices and
encourage proper disclosure, especially when the ads aren’t just promoting beauty or fashion
products anymore.
It’s evident that disclosure continues to be an issue that affects the way that influencers
and brands operate. Influencers and content creators occupy the space between advertisements
and the type of personal, organic content that is typically shared on social media. The integration
of these two aspects complicates the space, which makes it trickier to regulate on an ongoing
basis. But because the lack of proper disclosure statements has become so commonplace, it
seems that not complying has become the norm, and in my opinion, this is deeply problematic.
The proliferation of an unmet standard does not mean the standards should be brushed aside.
Until the FTC implements consequences and enforces the disclosure regulations, it will be
difficult to eliminate complications with disclosure across the board. However, there may be
ways that brands, influencers and consumers can build and advocate for a more honest and
transparent influencer marketing industry—ultimately by looking beyond the practice’s
materialistic aspects.

166 Ibid.

167 Ibid.
51
Part VII: Getting Past the Facade
For the longest time, the field of public relations was dependent on relationships with
journalists. It’s a known idea that public relations professionals must possess the skills necessary
to foster relationships with those who have the power to impact earned media. However, the
modern media landscape is no longer ruled by journalists alone, as influencers have gained
stature and a voice. A relationship-based model of working with influencers can help brands
form key mutually beneficial and authentic partnerships.
Likewise, influencers should intentionally prioritize transparency with their audiences to
gain their trust over time and form more interactive relationships with them. Influencer content
can often appear like a facade—one that has almost become synonymous with ad content. Yet,
consumers don’t want to feel duped, and they don’t want to feel like they are mere eyeballs for
ads; they follow influencers because they want it to fulfill a more “personalized friendship.”168 In
the midst of the oversaturation of content, audiences gravitate toward influencers who align with
their values and produce content that is meaningful to them. Overall, the influencer marketing
industry needs to shift toward a relationships-focused model with less emphasis on ephemeral ad
dollars.
This section will provide guidance for brands, influencers and consumers on how they
can contribute to a more values-based, sustainable model of influencer marketing, which may be
achieved through more long-term engagements, more proactive transparency and the
incorporation of a clear mission or purpose.

168 Whittell, Scarlett. “The Power of Influencer Marketing: Building Customer Trust in 2019.” The Drum. The
Drum, December 20, 2018. https://www.thedrum.com/opinion/2018/12/19/the-power-influencer-marketing-
building-customer-trust-2019.

52
Focusing on Relationships
Evan Asano of Mediakix says brands should build relationships with influencers who
familiarize their audiences through multiple pieces of content. “Whereas one-off campaigns pose
great difficulty in developing a sustainable influencer strategy, long-term influencer partnerships
achieve the opposite. The more brands continue to treat influencer marketing as a viable
marketing channel, the more they’ll prioritize managing rosters of trusted influencers with long-
lasting effects,” he explains.169
Similarly, Tyler Stevens, founder of Kinwoven and manager of influencer
LiveYourStyle, says, “As someone who’s managing an influencer business, we always
appreciate more long-term engagements. And we’ll likely do it for less money per engagement.
It’s something that we can share with our audiences progressively rather than through just one
video or post and that being the last time they’ll ever hear about it.”170
Long-term engagements are favorable because they offer more security for both brands
and influencers. They usually encompass more stable agreement terms and bring more prolonged
brand awareness to the influencers’ audiences. Even though they may pose some complications
when it comes to exclusivity, and it may take more up-front work to research influencers, long-
term engagements can be worth the investment, if there are stable agreement terms and clearly
defined expectations between both parties. In fact, long-term partnerships can lead to a more
efficient allocation of the brand’s marketing budget and a prolonged brand awareness. They can
also appear more authentic to consumers, as influencers are continuing to hold faith to certain
brands, and this becomes more and more visible in their content over time.

169 Asano, Evan. Interview by author.

170 Stevens, Tyler. Interview by author.
53
Although a possible downside to long-term engagements is that the audiences of the
promotion remain more or less the same, I believe this consistency may be valuable, especially
in developing positive attitudes and awareness over longer periods of time. Long-term
relationships with influencers may prove to be more sustainable than the quick-hit approach that
comes from one-off posts, and consistent, close relationships with key influencers could also
lessen the chances for brands to run into problems caused by influencer fraud.
Forbes describes how long-term partnerships also allow brands and influencers to run
A/B testing on their content to see which types of approaches, images and messages perform best
over time with a specific influencer’s audience. When partnering over a longer period of time,
brands can test and track what type of content appeals most to an influencer’s audience, when
other elements generally remain consistent.”171 Depending on what type of posts or content
garners the most desirable results, the brand can focus on creating that type of content with that
influencer as the partnership progresses. For short-term campaigns, a brand can test multiple
influencers on one or two posts but may not be able to take a more in-depth approach of studying
which forms of content perform best over time and what certain audiences like to see from the
specific influencers they follow.
Additionally, long-term engagements also aren’t limited to social media content. Digiday
reported that influencers are now becoming “brand spokespeople” and are requested to be
present at events.172 Nowadays, in-person engagements are becoming an integrated part of long-
term influencer strategy. For example, beauty mega-influencer Jeffree Star, who reported over

171 Wissman, Barrett. “Long-Term Partnerships: The Next Wave of Influencer Marketing.”

172 Liffreing, Ilyse. “Influencers Are Getting Long-Term Contracts That Treat Them More like Traditional Talent.”
Digiday, March 29, 2018. https://digiday.com/marketing/influencers-getting-long-term-contracts-treat-like-
traditional-talent/.

54
$18 million in yearly earnings in 2019,173 has become the face of cosmetics brand Morphe over a
multi-year partnership and hosted a meet-and-greet at the store’s first retail location at its
opening event in 2018.174 This not only garnered a growth in awareness for Jeffree Star as a
personality but helped Morphe build positive awareness to Jeffree Star’s audiences over time and
in a more intimate manner. Star also created and published video content to further amplify the
publicity, which helped extend the hype beyond just the event.
When working with influencers, specifically through long-term relationships, it’s crucial
that brands give influencers a say and a voice over their unique content. Brands are often wary of
working with influencers because they lose control over the messaging, and that hesitance is
warranted, as influencers can involve themselves in rather messy situations and scandals, which
is evident for controversial figures like YouTuber Logan Paul. Partnerships with influencers
undoubtedly come with a certain level of uncertainty and risk; yet, brands should refrain from
asserting too much control over the content that influencers want to create.
Robert Kozinets from USC Annenberg says that sometimes, brands restrict influencers to
the point where the influencers’ voices are lost.175 Brands may not want to give up control, and
many continue to script influencers. Kozinets suggests that brands let influencers express
creativity over their content.176 In most cases, influencers know their audiences best and
understand what type of content they want to see. Hence, brands should generally be more open-
minded in allowing influencers to speak to their audiences in their own authentic fashion. If the

173 Kelly, Cara. “Fyre Festival to Fashion Week, How Do Instagram Influencers Make so Much Money?”

174 WE SHUT DOWN THE ENTIRE MALL!! THE JEFFREE STAR VLOG DIARIES. YouTube, 2018.
https://www.youtube.com/watch?v=Zg14Vl4PvO0.

175 Kozinets, Robert. Interview by author.

176 Ibid.

55
brand is hesitant in doing so, then I believe that may be a sign that the partnership needs to be
reconsidered. Brands should work with influencers who put out content that aligns with the
brand’s values and image, and marketers should aim to form partnerships with influencers if they
feel confident in that figure’s abilities to convey the message in an effective and engaging
manner without a full script.
Furthermore, brands should absolutely make sure that influencers include the proper
disclosure statements. They should hold influencers accountable and remind them to put
relevant, qualifying information in their content in a “clear and conspicuous” manner, as laid out
by the FTC.177 Brand-specific hashtags aren’t enough.178 Influencers will likely benefit from
reminders to also clarify and disclose based on the FTC’s guidelines, and reminding them of
these ethical standards can help form stronger relationships between the two entities. Brands can
play an immense role in reversing the lack of disclosure, but influencers, too, hold the
responsibility to their audiences to exercise transparency and honesty.

Honesty First
In a study in which researchers interviewed young female Instagram users, it was found
that generally, audiences value the opinions of bloggers and “Instagrammers” over those of
traditional celebrities. 179 As mentioned earlier, Instagram influencers actually have more of a
tangible impact in driving purchase intentions, and this is precisely because influencers have

177 Federal Trade Commission. United States. .com Disclosures: how to make effective disclosures in digital
advertising (2013).

178 Ibid.

179 Djafarova, Elmira, and Chloe Rushworth. “Exploring the Credibility of Online Celebrities Instagram Profiles in
Influencing the Purchase Decisions of Young Female Users.” Computers in Human Behavior68 (2017): 1–7.
https://doi.org/10.1016/j.chb.2016.11.009.

56
relationships with their audiences that are based heavily on trust. Therefore, in my opinion, they
owe it to their followers and viewers to consistently be transparent and honest. Although the FTC
has yet to impose repercussions for violating their guidelines, influencers should take
responsibility and be more proactive in educating themselves on the guidelines and following
them closely.
Platforms like Instagram now have capabilities that make it easy for influencers to
disclose. Instagram has sponsor tags that can be added to posts, which allow influencers to list
“Paid sponsorship with brand-name” right under their username.180 Instagram requires
influencers to use the specific business partnership tag, which demonstrates that Instagram is
enforcing even stricter requirements than the FTC’s “#ad” on their platform.181 Despite the ease
of using Instagram’s branded content tool, it remains widely unused, as influencers may feel that
transparency will hurt their engagement.182
Aside from moral reasons, influencers should aim to disclose in order to construct more
intimate relationships with their audience. Just as brands form long-term relationships with
influencers, I believe influencers should be doing the same with their followers, and genuine
relationships can’t be built through deceit. Because today’s consumers tend to assume that all
influencer content is sponsored, proper disclosure will do more good than harm. In the age of
social media, where content can often seem like a facade, influencers should embrace this need
for transparency and make active efforts to implement it in any of their content—whether it’s an
ad or not. Influencers shouldn’t just disclose when something is sponsored but should also try to

180 Moravec, Christina. “Why Are Instagram Influencers Reluctant to Disclose Endorsements?” Convince &
Convert, December 12, 2017. https://www.convinceandconvert.com/social-media-case-studies/instagram-
influencers-reluctant-to-disclose-endorsements/.

181 Ibid.

182 Ibid.
57
indicate when something is not, just to further distinguish what is a genuine recommendation and
make it crystal clear to their audiences. In my opinion, if an influencer disclosed to this extent,
that would demonstrate that he or she clearly puts audiences first and prioritizes the perspective
of audiences over self-serving sponsorships or brand deals. This honest approach could help an
influencer stand out in the midst of a saturated, crowded space.
In addition to incorporating more transparency into their posts, there are additional ways
that influencers can work to form deeper, more meaningful relationships with their audiences.

Mission-Oriented Influencing
Melody Cheng of AsianBossGirl has worked in the social space quite extensively. She
currently runs the social accounts and growth of her podcast and is also the head of community
for a popular YouTube channel and video company, Jubilee Media. Similar to Tyler Stevens’
recommendations for organic growth, she too encourages influencers to give back to their
audiences, but not just through products and giveaways. She believes they need to embody a
clear message, purpose and mission that resonates with audiences and makes them feel
compelled to follow and engage with the content.183 “Lots of influencers out there are really
pretty and good-looking people, but sometimes, I have no idea what their purpose is. You’re
gorgeous, but what are you advocating for and how is your voice adding something valuable to
the online communities?” 184
Cheng wants influencers to think more about who they are really trying to influence. “For
us, we feel like we are an important voice for Asian Americans, and we know we have some

183 Cheng, Melody. Interview by author.

184 Ibid.

58
kind of obligation. We feel a sense of social responsibility, and I think many influencers have yet
to realize that they are touching people’s lives,” she explains.185 The AsianBossGirl podcast has
a clear and powerful purpose. The three hosts, all Asian American women, aim to bring forth the
underrepresented perspective of Asian women to mainstream media and discuss important topics
like work-life balance, families and romantic relationships.186 Influencers should think about
how they are adding value to society and the lives of their followers and should ultimately strive
to inspire others with their content. It can be especially enlightening for audiences if the
influencer can incorporate aspects of his or her own identity to a larger overarching purpose, as
Cheng and her fellow co-hosts aim to do.
Furthermore, influencers should aim to create and release content that reflects their
unique strengths and passions, which means they should be rather picky about brand deals. Just
as brands should research influencers that reflect their brand values, influencers should partner
with brands that they believe in and they can fully endorse without reservations. An influencer’s
voice is what makes them unique and attractive to audiences; yet many boast profiles and feeds
that are clouded with a majority of sponsored content. People don’t follow influencers for a
constant stream of ads. Cheng says, “I get it; for many influencers, sponsorships are their lifeline.
But that does not mean that money alone should dictate what types of ad content they post.”187
For AsianBossGirl, the podcast hosts are incredibly cognizant of what kind of sponsored
content they include on their social pages and the podcast episodes. For each brand that reaches
out with a sponsorship opportunity, the hosts consider what the listeners will like and benefit

185 Ibid.

186 AsianBossGirl. “About.” AsianBossG;r), n.d. https://www.asianbossgirl.com/about.

187 Cheng, Melody. Interview by author.

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from. “It really helps that we connect directly with our audiences and get so much feedback from
our listeners. That helps us think about which brand deals will actually appeal to them. If it feels
off-brand and morally wrong, we would never go forward with the sponsorship,” Cheng adds.188
Clearly, Cheng and her co-hosts prioritize the relationships they have with their audiences, even
when considering the brands they are willing to partner with. Ultimately, an influencer’s
sponsored content should only include brands and products that 1) the influencer has tried and
can genuinely endorse and 2) would be beneficial and interesting to his or her specific audiences.
Penguin Random House launched an interesting partnership in 2018 with top Asian
American influencers, working with them to curate and publish a list of top books by Asian
American authors. The list appeared on the publishing company’s blog and encouraged
influencers to share their favorites with their audiences.189 This type of partnership and approach
has a clear and empowering purpose of highlighting Asian American creatives and has an
overarching emphasis on a specific community’s perspective. Influencers should try to push for
and engage in more of these mission-driven partnerships; it should not be all about the
compensation.
Freddy Tran Nager from USC Annenberg elaborates on this topic and says, “True
influence comes from personality but more importantly, a perspective. What are you fighting
for? What is your stance, and what are you trying to convey? Influencers need to start developing
a message. They need to go past just being a person that people like to look at.”190 I believe that
influencers are indeed powerful people, but many don’t know how to use their influence, as they

188 Ibid.

189 “Recommendations from Your Favorite Asian American Influencers: Penguin Random House.” Penguin
Random House, May 17, 2019. https://www.penguinrandomhouse.com/the-read-down/recommendations-aapi.

190 Nager, Freddy Tran. Interview by author.

60
continue to prioritize the sponsorships and the fame. Instead, influencers today should focus on
constructing a purposeful mission and should work to put it at the center of all the partnerships
that they engage in and all the content they release. This, in turn, will help them differentiate
from other influencers and will allow audiences to connect with them on a more unique,
specialized subject matter.

The Hunt for Meaningful Content
It’s been mentioned multiple times that consumers are indeed getting savvier and are able
to sniff inauthenticity from brands and influencers. Consumers and social media users can see
through the fluff. And because they can speak back and communicate directly with influencers
and brands through social media, their voices are certainly valuable.
The authenticity and genuineness of influencer marketing are surely being tested due to
growth of unethical practices. Yet, the influencer industry continues to grow, and this is largely
due to consumers’ eyeballs and their purchases. In fact, the 2019 Influencer Marketing Survey by
Rakuten Marketing reported that 88 percent of social media users claimed to have bought
something based on the recommendation of an influencer.191
In the age of content saturation, consumers and audiences should really think about which
influencers appeal to them and why. Just as influencers should incorporate a mission into their
work, consumers should be more cognizant of the influencers that they follow and should make
efforts to follow those that post content that inspires and resonates with them deeply. If
audiences think twice about the influencers they choose to support and intentionally gravitate
toward those with substantial and mission-driven content, it may help to weed out influencers

191 Rakuten Marketing, 2019 Influencer Marketing Global Survey Report. https://rakutenadvertising.com/en-
uk/resources/influencer-marketing-global-survey-report/
61
who are in it for the wrong reasons. The influencer industry has a low barrier to entry, which has
consequently paved the way for bad apples who engage in fraudulent, self-serving practices.
However, I believe that consumers and audiences can become a sort of screening process, by
providing true engagement and a broader platform to influencers that do their due diligence and
are focused on forming genuine relationships with their audiences.
USC Annenberg’s Eunjin Anna Kim believes that it is up to consumers to be more aware
of disclosure practices and says consumers remain skeptical of the messages being presented to
them by influencers.192 There is no certainty regarding what posts are sponsored and what aren’t
if they don’t follow proper disclosure protocol. Although the FTC’s guidelines are directed
toward influencers and brands, consumers can benefit from learning about them as well. Being
more aware of what the guidelines are may help them to better decipher what ads from
influencers they are seeing on their Instagram feeds. Consumers can gain more control of their
purchase decisions by educating themselves and may even begin to serve as watchdogs in the
largely undisciplined space.
Consumers should also remain vigilant about the products they choose to buy. Food
influencer Cindy Yang says, “If I’m not sure if someone is being completely genuine, I’ll make
sure to look up the product or brand online and do my own research. Is it being backed up by
other people?”193 Especially since it may be unclear what content is a genuine recommendation
verses a paid ad, consumers should go out of their way to research the products they are
interested in purchasing. Although influencers are rather omnipresent on social media channels
and their endorsements hold significance, they should not be the only sources of endorsement

192 Kim, Eunjin Anna. Interview by author.

193 Yang, Cindy. Interview by author.

62
that consumers seek out, especially because influencers cannot be completely objective toward a
product or brand if they are being sponsored.
Online reviews can serve as a great resource for consumers to read about other people’s
experiences with products, and consumers should make note to search for reviews that are
comprehensive and come from reviewers who have used the product and those who present
supporting evidence about the product itself.194 Influencers can help bring certain brands and
products to the attention of their followers, but consumers should then take it a step further to
verify that influencers’ claims are backed up by other sources and testimonials.
However, to think that reviews are 100 percent foolproof would also be a flawed
judgment. USC Annenberg’s Freddy Tran Nager discusses the “dark side” of influencer
marketing. According to Tran, some brands are paying influencers to “trash their competitors.”
He says, “When reviewers were part of institutions, like the LA Times, there was more of a
vetting process. But now, it’s a lot more cluttered.” In 2018, members of the beauty community
reported that companies are paying influencers extra to “bad mouth those companies’
competitors.”195 One influencer management company requested $75,000 to $85,000 for a
“dedicated negative review of a competitor’s product.”196 Similarly, many companies pay for
fake reviews. Saoud Khalifah, the CEO of Fakespot, an online software that filters through and
detects fake reviews, describes the proliferation of these “bogus reviews” as a “pandemic.”197 He

194 Li, Jin, and Lingjing Zhan. “Online Persuasion: How the Written Word Drives WOM.”

195 Farokhmanesh, Megan. “Beauty Influencers Are Allegedly Making Extra Money for Negative Reviews.” The
Verge. The Verge, August 29, 2018. https://www.theverge.com/2018/8/29/17796622/beauty-influencers-bad-
negative-reviews-monetization-instagram-youtube.

196 Ibid.

197 Elliott, Christopher. “This Is Why You Should Not Trust Online Reviews.” Forbes. Forbes Magazine, November
22, 2018. https://www.forbes.com/sites/christopherelliott/2018/11/21/why-you-should-not-trust-online-
reviews/#26e8761d22
63
notes that “companies constantly plant positive reviews of their own products and sully
competitors’ products with negative reviews” and reports that 70 percent of reviews on Amazon
aren’t real.198
Clearly, the online review space is quite complicated as well. As these types of
troublesome practices continue, consumers and audiences need to make efforts to be hyper-
aware. They should seek out different avenues to learn about products and brands without
relying too much on specific individuals or one platform. In the midst of a rather messy digital
ecommerce space, consumers need to be more proactive in making educated purchases.
The lack of disclosure is a widespread issue that will undoubtedly need to be tackled by
the FTC in a clear, authoritative manner in the future. However, brands, influencers and
consumers also hold a responsibility to contribute to a more sound and honest influencer
marketing practice and to reduce the prevalence of deceitful practices. This section outlined the
possible ways that entities could strengthen the industry—by focusing on long-term, meaningful
relationships and by creating and supporting content that is driven by a clear mission and
purpose. The social media influencer marketing practice, as it currently exists, is far from
perfect. Yet, it is still a relatively new phenomenon. As the industry progresses and expands,
more clarity and integrity can help it sustain value.

Part VIII: Conclusion
According to Avinash Kaushik’s Marketing Analytics Intersect Newsletter, brands have
been incredibly quick to jump on the influencer marketing trend due to “FOMO,” or the fear of

198 Ibid.

64
missing out.199 Because influencer marketing has been presented as a new trend that seems to be
working, brands and agencies have been quick to jump on the trend without really considering
how emerging ethical issues could potentially undermine the practice.
In this paper, I examined two prominent ethical issues within the practice—influencer
fraud, the practice of buying followers and faking engagement, and the lack of proper disclosure,
despite the FTC’s regulations and reminders. These issues may make marketers wary of
incorporating influencer partnerships into their strategies; however, influencer marketing can still
play a rather significant and impactful role. It’s distinct from other forms of marketing, as it lies
at the intersections of word-of-mouth, celebrity endorsements and a democratized social media
landscape and integrates the benefits of the three to alleviate negative dispositions that audiences
have toward blatant ad content. Like any other business element, influencer marketing needs to
be thoughtfully executed as a part of the organization’s big picture goals and overarching
strategies.
Additionally, this thesis has laid out suggestions on how marketers and influencers can
help reclaim authenticity as they continue to navigate the space. Instances of fraud may be
mitigated by shifting the focus from follower numbers to more qualitative, community-based
attributes, which smaller-scale influencers can offer. Influencers should implement more organic
growth strategies, which will help attract more engaged audiences over time. As for deceptive
practices and issues with disclosure, the FTC, legal entities and social media platforms may need
to enforce regulations more strictly in for a clear-cut solution. However, in the meantime, brands
and influencers can refocus their priorities by embracing long-term relationships, honesty and a

199 Kaushik, Avinash. “Influencer Marketing Rocks!,”

65
clear mission. Consumers, too, can play an active role by holding influencers and brands
accountable and supporting those that publish meaningful content.
For brands, agencies and marketers that choose to ride the influencer marketing wave, I
believe they should be looking at influencer marketing as a more creative process, just as
Glossier and Daniel Wellington have incorporated unique and innovative approaches that have
elevated their brands in all aspects of the purchase funnel. Consumers are bound to grow tired of
the uniform types of posts on social media that come off as rather ingenuine and unnatural.
Ultimately, influencer marketing is about relationships. Brands should aim to form long-
lasting relationships with influencers, and influencers should prioritize forming purposeful and
engaging relationships with their audiences. Marketing and public relations professionals should
possess a sense of responsibility in managing relationships with influencers, and likewise,
influencers should evaluate their own ethical standards and focus their priorities on forming
long-term and personable relationships with their audiences that’s built on trust.
The 2020 Youth Issue of MIT Technology Review highlighted the growth of the
influencer profession, especially among kids. According to the magazine, “For every mega-
famous YouTube superstar, there are millions struggling for a taste of the big time.”200 Lego’s
survey of 3,000 children this past summer found that the “most coveted” profession in the U.S.
and U.K. is “vlogger/YouTuber”.201 Children don’t just look up to these influencers, or “internet
Gods,” but they also hope to become one of them. This only insinuates more reason for concern
over ethical issues like fraud and the lack of disclosure. The actions of influencers have wider
social ramifications, as children and aspiring influencers learn from their habits, and today’s

200 Tait, Amelia. “So You Want to Be a Kidfluencer?” MIT Technology Review. Jan-Feb, 2020. 38.

201 Ibid, 40.
66
influencers are now role models for many children who want to follow in their footsteps. In order
to build a sustainable and credible industry, influencers need to set an example by prioritizing the
integrity of the practices they engage in. Although this thesis has pointed out some of current
ethical issues, more mindful practices are needed to build an informed and accountable industry
in the coming years.
It’s likely that there will be more solidified enforcements and consequences put in place
for those who engage in unethical practices. Now that new platforms like TikTok have surfaced
and have begun to dominate the influencer marketing space, there is a need for stricter standards
for both marketers and influencers, especially when it comes to targeting younger audiences and
children. No matter what new technologies or platforms emerge, relationships and a long-term
focus should remain top of mind for both entities. The future of influencer marketing continues
to look promising, but in order to solidify strong relationships and ethical standards, there must
be an increasing emphasis on transparency and trust moving forward. It’s only right that all
parties—brands, influencers and consumers—ultimately feel empowered by influencer
marketing.

67
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Asset Metadata

Creator Park, Cathy (author)

Core Title The search for authenticity in influencer marketing

School Annenberg School for Communication

Degree Master of Arts

Degree Program Strategic Public Relations

Publication Date 04/21/2020

Defense Date 04/21/2020

Publisher University of Southern California (original), University of Southern California. Libraries (digital)

Tag advertising,authenticity,branded content,brands,digital marketing,disclosure,ethics,fame,Federal Trade Commission,Followers,fraud,FTC guidelines,influencer,influencer fraud,influencer industry,influencer marketing,influencer regulations,Marketing,micro-influencers,nano-influencers,OAI-PMH Harvest,PR,Public Relations,social media,social media advertising,sponsored content,transparency,word of mouth

Language English

Contributor Electronically uploaded by the author (provenance)

Advisor Tenderich, Burghardt (committee chair), Cook, Fred (committee member), Kozinets, Robert (committee member)

Creator Email cathygpark@gmail.com,cathypar@usc.edu

Permanent Link (DOI) https://doi.org/10.25549/usctheses-c89-284391

Unique identifier UC11675294

Identifier etd-ParkCathy-8286.pdf (filename),usctheses-c89-284391 (legacy record id)

Legacy Identifier etd-ParkCathy-8286.pdf

Dmrecord 284391

Document Type Thesis

Rights Park, Cathy

Type texts

Source University of Southern California (contributing entity), University of Southern California Dissertations and Theses (collection)

Access Conditions The author retains rights to his/her dissertation, thesis or other graduate work according to U.S. copyright law. Electronic access is being provided by the USC Libraries in agreement with the a...

Repository Name University of Southern California Digital Library

Repository Location USC Digital Library, University of Southern California, University Park Campus MC 2810, 3434 South Grand Avenue, 2nd Floor, Los Angeles, California 90089-2810, USA