Influencer marketing in the context of "Product placement"

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⭐ Core Definition: Influencer marketing

Influencer marketing (also known as influence marketing) is a form of social media marketing involving endorsements and product placement from influencers, individuals and organizations who have a purported expert level of knowledge or social influence in their field. Influencers are people (or something) with the power to affect the buying habits or quantifiable actions of others by uploading some form of original—often sponsored—content to social media platforms like Instagram, YouTube, Snapchat, TikTok or other online channels. Influencer marketing is when a brand enrolls influencers who have an established credibility and audience on social media platforms to discuss or mention the brand in a social media post.

Influencer content may be framed as testimonial advertising, according to the Federal Trade Commission (FTC) in the United States. The FTC started enforcing this on a large scale in 2016, sending letters to several companies and influencers who had failed to disclose sponsored content. Many Instagram influencers started using #ad in response and feared that this would affect their income. However, fans increased their engagement after the disclosure, satisfied they were landing such deals. This success led to some creators creating their own product lines in 2017. Some influencers fake sponsored content to gain credibility and promote themselves. Backlash to sponsored content became more prominent in mid-2018, leading to many influencers to focus instead on authenticity.

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In this Dossier

Influencer marketing in the context of Digital marketing

Digital marketing is the component of marketing that uses the Internet and online-based digital technologies such as desktop computers, mobile phones, and other digital media and platforms to promote products and services.

It has significantly transformed the way brands and businesses utilize technology for marketing since the 1990s and 2000s. As digital platforms became increasingly incorporated into marketing plans and everyday life, and as people increasingly used digital devices instead of visiting physical shops, digital marketing campaigns have become prevalent, employing combinations of methods. Some of these methods include: search engine optimization (SEO), search engine marketing (SEM), content marketing, influencer marketing, content automation, campaign marketing, data-driven marketing, e-commerce marketing, social media marketing, social media optimization, e-mail direct marketing, display advertising, e-books, and optical disks and games. Digital marketing extends to non-Internet channels that provide digital media, such as television, mobile phones (SMS and MMS), callbacks, and on-hold mobile ringtones.

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Influencer marketing in the context of Consumer behaviour

Consumer behaviour is the study of individuals, groups, or organisations and all activities associated with the purchase, use and disposal of goods and services. It encompasses how the consumer's emotions, attitudes, and preferences affect buying behaviour, and how external cues—such as visual prompts, auditory signals, or tactile (haptic) feedback—can shape those responses. Consumer behaviour emerged in the 1940–1950s as a distinct sub-discipline of marketing, but has become an interdisciplinary social science that blends elements from psychology, sociology, social anthropology, anthropology, ethnography, ethnology, marketing, and economics (especially behavioural economics).

The study of consumer behaviour formally investigates individual qualities such as demographics, personality lifestyles, and behavioural variables (like usage rates, usage occasion, loyalty, brand advocacy, and willingness to provide referrals), in an attempt to understand people's wants and consumption patterns. Consumer behaviour also investigates on the influences on the consumer, from social groups such as family, friends, sports, and reference groups, to society in general (brand-influencers, opinion leaders).

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Influencer marketing in the context of Influencer

A social media influencer, also known as an online influencer, or simply influencer, is a person who builds a grassroots online presence through engaging content such as photos, videos, and updates. This is done by using direct audience interaction to establish authenticity, expertise, and appeal, and by standing apart from traditional celebrities by growing that person's platform through social media rather than pre-existing fame. The modern referent of the term is commonly a paid role in which a business entity pays for the social media influence-for-hire activity to promote its products and services, known as influencer marketing. Types of influencers include fashion influencer, travel influencer, and virtual influencer, and they involve content creators and streamers.

Some influencers are associated primarily with specific social media apps such as TikTok, Instagram, or Pinterest; many influencers are also considered internet celebrities. As of 2023, Instagram is the social media platform businesses spend the most advertising money towards marketing with influencers. However, influencers can have an impact on any social media network.

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