lecture 8 Flashcards
Influencer marketing
a type of social media marketing that uses endorsements and product mentions from influencers
Who are influencers?
someone who has:
Power to affect the purchasing decision of others because of his or her authority, knowledge, position, or relationship with his or her audience
A following in a distinct niche, with whom he or she actively engages
Types of influencers:
How niche they are: products / target audience
How large their reach is: mega, macro, micro, nano
How do an influencers impressions vary with follower counts
less than 10K followers: informative content leds to more impressions
Larger follower base: socializing content leads to more impressions (though less effective on average)
Entertaining content similar effect as informational
why collect data from posts?
machine learning
estimating follower elasticities
Influencer type counterfactuals
S-shaped: “
“special effects” focussed campaign
Only catches on if popular enough influencer posts it
Only catches on if popular enough influencer posts it Concave:
Product demonstration focussed campaign
Niece audiences for this content
influencer type counterfactuals
Linear
self expressed focussed campaign
Broad appeal to all audiences
Optimal influencer selection formula
Assume value/impression and cost per 1K followers
–> optimal number of followers for a campaign
If a campaign focused around social content and socialization what kinf of followers count
influencers with a higher follower count
IF campaign focused around information what kind of follower count
lower follower counts
Because of trust and authenticity
Once we can quantify elasticity of impressions with respect to followers, we can
establish the optimal follower count to target for a new campaign
Conditional on knowing cost per followers and assuming value generated per impressio
What is the effectiveness of influencer marketing on consumer demand
small, positive effects of organic influencer content on demand
Similar in magnitude to OWoM volume and avertising which helps these numbers feel credible
Sponsoring influencers leads to
even smaller positive effects (1/5th of organic)
but does lead to cascades of organic content
ROI for sponsored content is negative for 2/3rds of games
How does sponsorship disclosure impact consumer evaluation of brands and influencers
Revealing a post is sponsored makes consumers trust the post more, particularly when the content is perceived to be sponsored
prevents decrease in likeability of influencers and negative brand evaluations
When consumers think something is sponsored and cant be verified perceptions go down
