Influencer marketing spending is increasing rapidly
In collaboration with the Darmstadt University of Applied Sciences and the University of Mannheim, the researchers surveyed more than 1,000 young people between the ages of 14 and 18 about their social media use and purchasing behavior. The result: around half of them have already bought a product that was promoted by an influencer.
Their social media accounts have now become important advertising platforms. Expenditure by companies in the influencer market has increased massively in recent years – including in Germany. While companies in this country paid around 94 million euros in this area in 2017, last year it was almost 570 million euros, according to Statista Research.
That’s not much compared to the entire German advertising market, which, according to the Central Association of the German Advertising Industry (ZEW), amounts to almost 49 billion euros. But the growth rates are high. For 2028, Statista Research already expects spending of around 906 million euros – an increase of 59 percent. But why is influencer marketing so successful?
Influencers as role models “to maintain social connections”
“Young people are a particularly vulnerable group in the digital space because they spend a lot of time on social media and are less likely to recognize advertising,” the ISI said today when the study was published. They see influencers as role models “who show them what to wear, eat or drink in order to maintain social connections.” Therefore, children and young adults are exposed to a constant risk of critical consumption.
Influencer marketing offers advertisers many advantages, adds Lutz Frühbrodt, professor of business communication at the Würzburg University of Technology. To tagesschau.de He said: “The advertising message here is not thrown out in a can, as is the case with other media. Rather, influencers address very specific target groups directly.”
For example, when it comes to cosmetic products, the influencer in question primarily has an audience that attaches great importance to their appearance and prefers a very particular style of make-up. In addition, users would not perceive much content as advertising, says Frühbrodt. “Because the audience has already established a seemingly personal relationship with the influencer through previous posts or videos, they also place particular trust in that influencer when they ‘recommend’ a product.”
13 to 14 year olds are particularly affected
Over half of those surveyed in the ISI study who have already purchased products advertised by influencers have not spent more than 50 euros on them within the past six months. However, more than a tenth of young people (10.7 percent) stated that they regularly had impulses to buy or constantly had thoughts about a product. 10.3 percent even often feel the urge to own an item that they have seen on their favorite influencers.
According to the study, young people aged 13 to 14 are particularly affected. The respondents stated that they felt very influenced, especially at the beginning of their social media consumption. According to a survey by the search and comparison platform GetApp, the most purchased products promoted by influencers are clothes, food, beauty and wellness products, and sporting goods.
According to the researchers, the platforms on which young people follow influencers differ based on gender, among other things. While female users tend to consume content on Instagram and TikTok, YouTube was more relevant in terms of marketing for male respondents.
Advertising is not always consciously perceived
How users are ultimately influenced is not always the same – it can happen consciously or unconsciously. “The products usually play a larger role, and then it is clearly advertising,” explains expert Frühbrodt. In some cases, however, they only have a secondary role – for example, when a video about a different topic simply zooms in on a product or the name of the manufacturer. “This is what is known as product placement.”
In addition to advertising purposes, this can also be used to finance the content. But both types have one thing in common: unlike a commercial or an advertisement, they cannot simply be skipped or scrolled away. Instead, the advertising is embedded in the overall plot of a piece of content and does not interrupt the program. In contrast to classic marketing, influencer marketing is often intended to act like a well-intentioned tip among acquaintances. It remains to be seen whether this is really the case or something is just being said to make money.
However, as with classic advertising, it must be clearly marked as such – at least if the influencer receives something in return. This is what the “Law to Strengthen Consumer Protection in Competition and Commercial Law” passed in 2021 says. The payment does not always have to be money, says Frühbrodt. “If I advertise a scooter and am allowed to use a scooter from this manufacturer for free for a year, this advertising would also be subject to labeling.”
Inadmissible surreptitious advertising or not?
But if an influencer promotes a product without anything in return – for example because he is interested in collaborating with the producer or because he really likes the product – the whole thing becomes more complicated. Then it depends on the user’s interest in information and the context. For each contribution it must be clarified whether it serves advertising purposes or is primarily purely editorial. However, it is not always clear whether the opinion is uninfluenced and independent. In addition, not every individual case of surreptitious advertising is prosecuted.
Expert Frühbrodt therefore considers the mixing of editorial and advertising content to be “highly questionable”. Especially with regard to younger people, in the long term this will come at the expense of factual, informative journalism. “In my opinion, the advertising regulator has blatantly failed here and has placed commercial interests above the well-being of vulnerable people,” emphasizes Frühbrodt.
According to the ISI authors, the abolition of the basic labeling requirement would “lead to a decline in urgently needed media competence”. They therefore recommend that politicians “examine the legal regulations and prioritize the need for child protection.” In addition, young people’s advertising skills and self-control ability should be strengthened.