Influencers: Why it works
Save money, influence more
Welcome back! This is part 2 of our American consumerism series. If you recall the last post, we talked about American consumerism throughout the years and touched briefly on current product trends of some companies but I want to discuss influencers and the sheer power they have on the American market. As always, feel free to click the hyperlinks to check out my research and learn more!
It's no secret that influencers have a powerful effect on people. They're influencers, their job is literally to influence people. According to Influur.com, influencers can be traced back to ancient civilizations, usually kings and pharoahs. This continued throughout history with celebrity endorsements (...because, the Juicy Couture track suit really was not that cute. I'm looking at Paris Hilton, however, comfort can be king at times). With the rise of social media, a new kind of celebrity emerged, creating a new form of endorsement: influencers. I wanted to talk about Youtube and growing up when Youtube was getting big and how that was how I started being influenced by influencers. However, we have been getting influenced by those in limelight for years. I remember being a child and waiting for the Toys-R-Us catalog to come out to find the toy I saw in the commercial with my favorite cartoon character, we are all influenced by familiar faces but why does it work so well?
Americans have become increasingly conscientious with how they spend their money, and reasonably so. I know I try as hard as I can to save as much money as possible. But it's not just that, Americans want to spend their money at places that align the company values with their personal values. They want to see the product in everyday life and a huge part of marketing a product is painting the picture of how a particular product fits into everyday life.
However, it is much easier for consumers to view themselves using a product when they see a public figure that they like using the product. This is where celebrity endorsements come into play. Nike is a great brand, they make great products. But they are not popular because of their products alone, Nike is a great brands because famous basketball players wear their sneakers and tennis players wear their clothes and olympic gymansts wear their leotards. Everyone wants a piece of greatness, so seeing celebrities being great, we want to be just like them. Therefore, we need the best equipment for our performance, so we buy Nike shoes so we can run faster, and Nike clothes so we can become stronger, and Nike leotards so we are more aerodynamic.
However, consumers cannot view themselves on the olympic balance beam or on the basketball court playing the Celtics. It's what we dream of, but not where we are. This is where influencers differentiate themselves from the celebrities. Influencers are not as famous, make less money, and often work from home. So, when we see them using a product it gives us a taste of reality. When we see a Tik Tok star using a Scrub Daddy spongue to clean their kitchen, we see the aesthetic and glamour of cleaning our kitchen. So, we throw out our old dish rag and go buy a Scrub Daddy. Then, we go clean the kitchen, and see it's much easier to scrub our dishes. It feels more glamourous because we're using the fancy product just like we saw on Tik Tok. I think that often times influencer marketing can be more powerful than any other form of marketing. It targets the audience in just the right way that drives us to go buy the new thing.
Another aspect of influencer marketing that makes it so effective is that when we watch our favorite Tik Tok star, we feel like we are getting an inside glimpse into their life. They talk to us like humans about their personal life and we see all the aspects of their personal life that we wouldn't see with a celebrity. I don't know what the inside of Beyonce's house looks like, but I have seen Charli D'amelio dance in her bathroom mirror tons of times. We take advice from people we know and trust. My mom uses Gain laundry detergent, I use Gain laundry detergent because it works well and smells like home. Even though we do not know famous Tik Tok stars personally, it sure feels like it when they post everyday about what they're up to. We trust their judgement, we want to use what they use. So, their endorsement is so much more powerful than any other endorsement becuase there is almost a level of trust that we don't have with celebrities.
Social media marketing is so important in today's day and age is so important because your reach can be so much larger. With the use of influencers, reach can be so much larger than just using the company's social media on its own. This is why influencers are more powerful than you think. They are the trendsetters and everyone wants in on that.
So, why do influencers impact consumerism so heavily? To make this clear and concise: influencers get paid to use products that they recieve for free. Companies send their products to influencers for free to test and then promote those products to their audience. Not only do they get paid to promote the product, they get the product for free. It's a pretty sweet gig. I love free stuff and there are ways to recieve free products from companies but you have requirements you must meet to become an influencer that promotes products. Most companies have a follower requirement that someone must meet before they can become a brand promoter. Usually it's over 1,000 followers. Moburst.com goes into detail about what tier of influener someone is based on their follower count. 1,000-10,000 followers is classified as a "nano-influencer". The goal is to become a brand influencer and grow your following to gain more partnerships with businesses. However, to keep the title of "brand influencer", the 1,000 follower count must be maintained. It's almost like a strategic game, but why does it feel like a pyramid scheme? Just that maintance of followers but trying to grow, feels icky. Maybe not, I'm not here to spread a conspiracy, just thinking out loud.
Anyways, when you watch an "organizing" or "restocking" video on Tik Tok, and the influencer has 10 different brands of concealer or a fridge full of every soda brand and flavor under the sun, it's not because they bought it all, it's because they could be in partnership with a brand that sends them a monthly package of products for them to test out or include in videos. This allows them to maintain their sponsorship and make tons of money. It also allows them to not have to buy as many personal products becuase they are supplied with their products through their sponsorship. Think about it this way:
According to the U.S. Bureau of Labor Statistics, as of September 25, 2024, the average consumer spent $77,280 accross all categories in 2023. So, let's say we watch a female lifetime/beauty influencer who spends exactly $77,280 per year on various products and categories (necestities such as housing, transportation, food are included in this). In this example, our influencer has multiple partnerships she is promoting, no children, and is single. In this example, the partnerships last for one year. So, let's say our influencer has a partnership with a company that sells hair care products. They give her all the new hair care products they want her to promote the new product. She doesn't have to spend any money on hair care products all year. Annual spending on hair care is $85.53, taking her annual spending down to $77,194.47. Let's say the same thing happens with a skin care brand ($322.88/yr.), a makeup brand ($1,754/yr.), a perfume brand ($211.82/yr.), a shoe brand ($240/yr.), and a clothing brand ($1,434/yr.). Again, these numbers are not exact but they're going to be effective for this example. With the help of these partnerships, the influencer's new annual spending is $73,231.77, a $4,048.23 decrease. But, there are tons of different brands, so we could add in food and beverage brands from grocery spending, discounts from brands to decrease other areas of spending, it goes on and on. I didn't even add in the revenue these influencers get along with the free products. This is how influencers are able to make their living doing their influencing alone and it's also why you don't necessarily need the products the influencers are trying to sell.
Living in a time of social media is very strange. When you use social media, you have to use it with this knowledge: social media platforms are in a constant battle for your undivided attention. Even though there is content on these platforms that are distinctly advertisements and partnerships that are obviously partnerships, but some of these advertisements are not obvious at all due to trends and product placement, which leads me to the end of this very long post. Influencers are so unique and they hold so much power in the marketing world. However, it was really eye-opening to see how much money you really can save as an influencer. There are companies that help you with getting PR packages from companies. I have tried to sign up for them because, everyone loves to save some money but I wasn't able to finish due to moving back and forth from college. If anyone has used them, let me know if they work. I'll be back soon with more on modern consumerism, but until then, best wishes.
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