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Why Brands Should Tread Carefully With Influencer Marketing in 2023

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Why Brands Should Tread Carefully With Influencer Marketing in 2023

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What happens in the world of influencer marketing in 2023?

Source: Tread Carefully With Influencer Marketing (cmswire.com)

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The risks of influencer marketing are discussed in this article, particularly in regard to recent scandals involving well-known individuals like PewDiePie and Kanye West. The primary points are as follows:

Risk of Association: Influencer partnerships may fall apart if the influencers say or do something controversial. This was the case regarding Kanye West's antisemitic remarks, which prompted Adidas and Gap to cut relations with the well-known celebrity.

Cancel Culture: An influencer's activities have the potential to get them in trouble, which is known as "cancel culture," which might have an impact on both the influencer and the companies that they represent. Companies should collaborate with influencers who share their beliefs.

Desire for Implementation: Brands need to move quickly to break their association with problematic influencers during times of crisis. Delays in breaking ties could worsen the damage and their own image.

Use caution when choosing influencers: In order to prevent aligning with people who could damage their reputation, brands should carefully investigate possible influencers and gain insight into their personality and prior actions.

Lasting Considerations: The article highlights the necessity of emphasizing the future integrity of the brand over short-term advantages from influencer collaborations, calling for careful planning in influencer marketing methods.

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Brand Reputation as an Economic Asset

Different brands will invest in influencers to enhance their reputation but with some artists (such as Kanye West or R Kelly) their association can lead to damage within the brand reducing consumer trust and negatively affecting sales.

Risk and Uncertainty

Influencer marketing carries the risk that influencers may act unpredictably, often leading to damaging the brand's public image.

Cost-benefit analysis

Brands assess the potential rewards of influencer marketing versus the risk of reputational damage.

Opportunity Costs

Making the wrong decision with an influencer can result in the loss of a potential gain from working with a more aligned partner.

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This shows that brands are less interested in working with influencers because of the risks involved.

Examples like Kanye West and PewDiePie show how influencer mistakes can damage brand reputation.

This makes brands lower their spending and reduce partnerships, which matches the leftward shift in demand.

Lower price and fewer deals reflect how brands are being more careful in choosing influencers.

The model’s predictions match the article’s message that brands need to tread carefully in 2023.

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Positive Analysis

Research has shown that influencer marketing can increase engagement rates more than traditional advertising.

When working with influencers they are able to reach different audiences based on what their content is like. Influencers often have dedicated followers that trust their recommendations.

Multiple companies report positive return on investment when they work with influencers. This is often measured by engagement, website trafficking, etc.

Often when influencers post about a company or a product they are posting high-quality content that there audience finds relatable. This can enhance the authenticity and perception of the brand.

Normative Analysis

Critics argue that when an influencer promotes an item in exchange for payment, then their credibility of the product decreases.

Influencers can also be used as a form of manipulation to young audiences like teens, because of their susceptibility to marketing tactics

There have been ethical concerns being talked about as well. Multiple consumers argue that influencers should display that the product they are promoting is through paid partnership.

Influencers can also potentially promote unhealthy societal norms that promote unrealistic standards,for example lifestyle and beauty. This can affect the audience's mental health and self-esteem.

As the influencer market grows there is a risk of saturation in the influencer community. This is where the audience becomes desensitized to paid partnerships which decreases the returns of the brand and influencer.

Conclusion

Influencers can be a highly effective marketing tactic when wanting to reach a target audience but it can also yield different results depending on the influencers history. Influencers can be very efficient in spreading a product to a niche community considering they have a large following. Through influencers companies are able to gain profit which then creates a fair opportunity for all the stakeholders of the company. But within a paid partnership we are able to see the top influencers as well as brands with a strong consumer following. We can see that top influencers offrent secure various partnerships with popular brands. As well with brands with a strong following we can see that the benefits of partnering with influencers is that they are able to continue to partner with different influencers as well. On the negative side there are influencers that don't have the similar opportunities which can be difficult to secure a big partnership deal. Similarly, smaller brands can also have issues with trying to get influencers to promote their products because of the cost of getting influencers or regulatory constraints.