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Chiara Nußbaum / Jennifer Potthoff IW-Report No. 43 27. November 2024 Influencers - power, marketing and manipulation

The creator economy is a rapidly growing industry that, according to forecasts, will continue to gain influence and increase sales in the coming years. With advertising deals and collaborations, influencers in particular not only generate high sales, but also have power over opinions and influence the consumer behavior of their followers.

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Influencers - power, marketing and manipulation
Chiara Nußbaum / Jennifer Potthoff IW-Report No. 43 27. November 2024

Influencers - power, marketing and manipulation

German Economic Institute (IW) German Economic Institute (IW)

The creator economy is a rapidly growing industry that, according to forecasts, will continue to gain influence and increase sales in the coming years. With advertising deals and collaborations, influencers in particular not only generate high sales, but also have power over opinions and influence the consumer behavior of their followers.

The line between marketing and (opinion) manipulation is often blurred, especially as political actors are also increasingly active on social media platforms and use similar techniques to expand their power, influence public opinion and build proximity to their audience. In Germany, the AfD has been particularly successful in this regard, as it has been able to significantly expand its reach on social media compared to the established parties. On TikTok in particular, the AfD generates a lot of engagement, reaches a predominantly young target group and spreads its political messages particularly effectively.

The success of influencers can be explained by the skillful use of new technologies and the building of trust. In addition, the various social media platforms suggest proximity, personal exchange and direct contact with the audience and followers. From a behavioral economics perspective, the success of influencers is reinforced by effects such as the confirmation bias, the anchor effect and the consistency principle. The high level of trust that young people in particular develop towards influencers offers opportunities, such as education about important social issues, but harbors risks if no distinction is made between opinion, advertising and facts: A lack of transparency and advertising labeling in influencers' content or hyperbolic promises about the effectiveness of a product or political measures can lead to excessive consumption that is harmful to health or the environment, or even radicalize one's own opinion contrary to the facts. In order to limit the risks and make influencer marketing more ethical, digital education needs to be promoted by integrating media skills into school lessons and influencers need to receive regular training on legal and ethical standards. In the political context, other parties in particular should also use the new technologies to build more trust with the younger generation in a competitive environment. Role models - whether in the real or virtual world - have to meet higher moral standards because they have more power. The introduction of codes of conduct and certification systems as well as measures by platform providers against disinformation and misleading advertising can also help to make the influencer marketing world more ethical. Whether this will also succeed in the political environment remains to be seen.

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Influencers - power, marketing and manipulation
Chiara Nußbaum / Jennifer Potthoff IW-Report No. 43 27. November 2024

Influencers - power, marketing and manipulation

German Economic Institute (IW) German Economic Institute (IW)

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