The Market for Online Influence

Recent developments in social media have morphed the age-old practice of paying influential individuals for product endorsements into a multibillion dollar industry, extending well beyond celebrity sponsorships. We develop a parsimonious model in which influencers trade off the increased revenue they obtain from paid endorsements with the negative impact that these have on their followers’ engagement and, therefore, on the price influencers receive from marketers. The model provides testable predictions that match suggestive evidence on pricing of paid endorsements, reveals a novel type of inefficiency that emerges in this market, and clarifies the role of search technology and advice transparency in shaping market activity. In particular, we show that recent policies that make paid endorsements more transparent can backfire, whereas an increase in the effectiveness of the search technology that matches followers to influencers has both direct and strategic positive welfare effects. (JEL D83, L82, L86, M31.)

Children’s perception of YouTube videos with product endorsements: An exploratory study

Research on children’s advertising literacy needs to keep pace with the emergence of different forms of marketing communication in the digital era. This paper reports on a qualitative study conducted among 30 children aged 10 to 12 to explore how children perceive and respond to YouTube videos that carry product and brand messages. Interviewees were asked to watch an unboxing YouTube video. Afterwards, they were asked about the purposes of this kind of video, similar videos they watched on YouTube, and the perceived influences of these messages on purchase decisions. Results show that interviewees varied tremendously in their understanding of the selling and persuasive intents of these messages. Some interviewees did not consider these videos to be advertisements because of their narrow way of defining advertising. Interviewees learned about brands for children as well as for adults from YouTube videos with product endorsements. They were aware of the persuasive effects of these videos on their brand knowledge and purchase behaviors. Theoretical and marketing implications of these results are discussed.

Government Agency Product Endorsements and Stock Valuations: A COVID-19 Event Study

During the COVID-19 pandemic, a US government agency (the Environmental Protection Agency) made two announcements recommending the products of 2 different firms in the Household & Personal Products industry. The announcements were official and posted to the EPA’s website on the dates of March 3, 2020 and July 6, 2020. Evidence shows these announcements added value to the firms that were promoted. Also, on a risk-adjusted and head-to-head basis, these announcing firms significantly outperformed the other large firms in the industry around the date of the announcements.

YouTube celebrity endorsement: audience evaluation of source attributes and response to sponsored content. A case study of influencer Verdeliss

This article analyses follower response to the growing number of product endorsements present in YouTube videos published under the username “Verdeliss” by Estefanía Unzu Ripoll, Spain’s most popular YouTube influencer on the topic of maternity and childcare. Results of a self-administered online survey of 949 Verdeliss followers focused on their individual evaluations of source attributes indicate that Unzu Ripoll’s YouTube fans tend to buy products she endorses on the basis of her perceived likeability and expertise, and that the overall influence she exerts on their purchasing decisions is slight. In closing, the authors offer insights into how social media influencers can enhance the effectiveness of their online endorsements and identify tactics brands can employ to ensure that the influencers they collaborate with are optimally suited to promote their products.

Children’s bonding with popular YouTube vloggers and their attitudes toward brand and product endorsements in vlogs: an explorative study

Purpose The purpose of this study has three primary aims. The first is to examine the amount of time children spend per week on viewing vlogs. Second, the authors explored children’s awareness and understanding of the brand or product placement in vlogs. Finally, the authors explored children’s self-perceived susceptibility to the potential persuasive effects of these vlogs. Design/methodology/approach Self-reported measurements were assessed among children (N = 127, 10-13 years of age). Findings Results indicate that the majority of children frequently view vlogs and that their degree of bonding with the vlogger predicted the time spend on viewing vlogs. Children recalled products and brands that were shown in vlogs, which were mostly food and beverages and considered themselves and others affected by endorsements in vlogs. Research limitations/implications Only cross-sectional data were collected; these data cannot be used to analyze behavior over a period of time or draw causal inferences. Practical implications Considering the popularity of vlogs among young people, it is important to acquire more insight into the frequency and amount of time children spend on viewing vlogs and children’s processing of persuasive messages in vlogs. This may lead to a better understanding of underlying processes and prediction of the outcomes of advertising through this form of media content. Current findings raise further questions about the persuasive content of vlogs. Originality/value Because of the popularity of online (social media) channels among youth, companies dedicate a significant proportion of their marketing budget on online influencer marketing. Therefore, it is important to acquire insight into children’s processing of online persuasive messages. To the authors’ knowledge, there is no empirical research on children’s potential bonding with popular vloggers and their awareness and understanding of the brand or product placement in vlogs.

Consumers’ Perception on Multiple Product Endorsements by Celebrity in Instagram Study Case

Internet had made important changes in economic and social life. It provides interaction and a lot of information that create connection for marketers to reach out and touch their customers especially through Social Media. For present, Instagram is the most popular social media sites in Indonesia. Instagram provide an opportunity for one of the marketing strategies by using celebrity endorser to share their visual contents. Unique post and related content can engage consumers in a personal way and affect people on an emotional level. Celebrity Endorsement according to McCracken (1989) is a transfer process of value perception of the endorser to the product and then from product to consumer. The promotion in Instagram happens in simple manner when the celebrities share post in their Instagram feed. Previous study by Tripp (1994) found that multiple product endorsements by celebrities negatively influence consumer perceptions of the endorser and the product. However, in present day, many endorsement activities come from one celebrity endorser with different kind of products posted every day. Multiple product endorsements is imminent and unavoidable otherwise company may need to compensate the celebrity with a huge amount of endorser fee to make one celebrity exclusive only for their product, yet the impact for exclusive endorser has not been proven. This study focuses on Multiple Product Endorsements by Celebrities that happen in Instagram, researcher choose Nikita Willy, Joanna Alexandra and Karin Novilda as the celebrity endorsers. Qualitative approach has been used to explore and generate understanding on consumers’ perspective toward multiple product endorsements by celebrity. Literature review revealed there were lack of study on multiple product endorsements in Instagram. Hence, interviews were done among 10 respondents of active Instagram user during May 2018 to June 2018. It was found most of respondents favor multiple product endorsements as long as the products endorsed match with the endorser image, the type of contents shared by the endorser has impact on the product endorsed and multiple product endorsements by celebrities can benefit other products promote by the endorser. In general, it can be concluded that multiple product endorsements in Instagram is acceptable and may become part of the marketing communication strategy. Keywords: multiple product endorsement, celebrity endorsement

Health by design: teaching cleanliness and assembling hygiene at the nineteenth-century sanitation museum

In 1878, amid a rapidly proliferating social interest in public health and cleanliness, a group of sanitary scientists and reformers founded the Parkes Museum of Hygiene in central London. Dirt and contagion knew no social boundaries, and the Parkes's founders conceived of the museum as a dynamic space for all classes to better themselves and their environments. They promoted sanitary science through a variety of initiatives: exhibits of scientific, medical and architectural paraphernalia; product endorsements; and lectures and certificated courses in practical sanitation, food inspection and tropical hygiene. While the Parkes's programmes reified the era's hierarchies of class and gender, it also pursued a public-health mission that cut across these divisions. Set apart from the great cultural and scientific popular museums that dominated Victorian London, it exhibited a collection with little intrinsic value, and offered an education in hygiene designed to be imported into visitors’ homes and into urban spaces in the metropole and beyond. This essay explores the unique contributions of the Parkes Museum to late nineteenth-century sanitary science and to museum development, even as the growth of public-health policy rendered the museum obsolete.

Health claims and product endorsements on child-oriented beverages in Guatemala

ObjectiveWe sought to describe front-of-package marketing strategies and nutritional quality of child-oriented beverages in Guatemala.DesignWe purchased all child-oriented ready-to-drink fruit drinks, milks and carbonated beverages in three convenience stores and one supermarket in Guatemala City. Front-of-package marketing was defined as the presence of spokes-characters, cartoons, celebrities, or health-related images, words, claims or endorsements on beverage packaging. We used the UK Nutrition Profiling Model (NPM) to classify beverages as healthy or less healthy.SettingGuatemala City, Guatemala.ResultsWe purchased eighty-nine beverages; most were fruit drinks (n52, 58 %), milk (15, 17 %), carbonated beverages (5, 17 %), rice/soya products (5, 6·0 %), water (1, 1 %) and energy drinks (1, 1 %). Two-thirds (57, 64 %) had health claims. Of those with a nutrition facts label (85, 96 %), nearly all (76, 89 %) were classified as less healthy. No association between the presence of health claims and NPM score (P=0·26) was found. Eight beverages had health-related endorsements. However, only one beverage was classified as healthy.ConclusionsIn this sample of beverages in Guatemala City, health claims and health-related endorsements are used to promote beverages with poor nutritional quality. Our data support evidence-based policies to regulate the use of front-of-package health claims and endorsements based on nutritional quality.