Leung et al. (2022b), Online Influencer Marketing

Question 1

Online influencer marketing

Answer 1

OIM is a marketing strategy where firms select and incentivize online influencers to engage their followers on social media to promote products and enhance firm performance.
- Key Features:
* Firms select and compensate influencers.
* Influencers engage followers authentically.
* Influencers leverage their network, personal brand, and trust.

Question 2

OIM distinctiveness

Answer 2

• Celebrity endorsements: Influencers maintain authenticity.
• Viral marketing: Focus on influencers’ original content.
• Seeding campaigns: Greater creative freedom for influencers.

Question 3

OIM industry growth

Answer 3

• Industry Growth:
• Global spending reached $13.8 billion in 2021.
• Micro-influencers often preferred for cost-efficiency.

Question 4

Social Capital Theory:

Answer 4

• Influencer resources consist of:
• Structural Capital: Network reach and connections.
• Relational Capital: Trust and emotional bonds with followers.
• Cognitive Capital: Shared understanding and meaning between influencers and followers.

=> Values network quality over trust and size alone

Question 5

Benefits of OIM
Targeting Benefits (P1):

Answer 5

• Segment Homogeneity: Influencers naturally attract like-minded followers, increasing precision in targeting.
• Example: Beauty influencers reach cosmetics consumers.
• Segment Dynamism: Followers dynamically follow/unfollow influencers based on evolving interests, helping firms adapt to shifting consumer preferences.

Question 6

Benefits of OIM:
Positioning Benefits (P2):

Answer 6

• Leverages influencers’ personal brand positioning to enhance or complement the firm’s
  positioning.
• Example: Zara’s #iamdenim campaign with Teesh Rosa portrayed accessibility.
• Market Acceptance: Influencers’ positioning survives natural selection.
• Distinctiveness: Unique attributes resonate with niche audiences.
• Feedback Reflectivity: Firms can test and adjust brand positioning based on followers’
  reactions.

Question 7

Benefits of OIM:
Creativity Benefits (P3):

Answer 7

• Influencer-generated content (IGC) is original, relevant, and engaging.
• Example: TikTok influencers created humorous videos for a feminine care brand, garnering
  millions of views.
• Content Originality: Novel interpretations of brand messages.
• Content Relevance: Tailored to followers’ interests, avoiding intrusiveness.

Question 8

Benefits of OIM:
Trust Benefits (P4):

Answer 8

• Influencers establish trust through authenticity and genuine passion for topics.
• Example: Fitness influencer Ewa Chodakowska’s authentic posts inspire trust.
• Communal Bonds: Followers feel personally connected to influencers, unlike transactional
  brand relationships.

Question 9

Benefits of OIM

Answer 9

• Targeting Benefits (p1)
• Positioning Benefits (p2)
• Creativity Benefits (p3)
• Trust Benefits (p4)

Question 10

Threats of OIM

Answer 10

• Content Control Risks (p5)
• Customer Retention Risks (p6)

Question 11

Content Control Risks (P5):

Answer 11

• Firms must relinquish control over how influencers present products, risking inconsistency with
  brand messaging.
• Example: Influencers might unintentionally misrepresent products.

Question 12

Customer Retention Risks (P6):

Answer 12

• Followers’ loyalty is to influencers, not the brand, making it challenging to retain customers
  long-term.

Question 13

OIM Management Strategies

Answer 13

1. Select the Right Influencers:
   * Match influencers’ brand, audience, and content style with marketing goals.
2. Monitor Content Creation:
   * Set clear campaign objectives while allowing creative freedom.
3. Measure Performance:
   * Track metrics like engagement, conversion rates, and ROI.
4. Repurpose Content:
   * Use influencer-generated content in broader marketing efforts to maximize its utility.