Sharing or Selling? Rethinking Influencer Strategy

Sharing or Selling? Rethinking Influencer Strategy   Research conducted by Professor Yijing LI, Professor Fang Flora GU, Professor Fine Fanni LEUNG       Influencer marketing has transformed into a global phenomenon, with expenditures projected to reach US$32.55 billion by 2025. As firms increasingly rely on online personalities to amplify brand visibility and strengthen consumer relationships, a critical question arises: how much sponsored content is too much? New research from Yijing Li, Angela Yi Gao, Flora F. Gu, and Fine F. Leung challenges conventional wisdom, revealing that both low and high frequencies of brand endorsements can drive high consumer engagement.     The Challenge: Authenticity versus Commercialisation Firms often struggle with influencer selection, frequently adhering to the common recommendation to avoid partners with high endorsement rates—the proportion of brand-sponsored posts relative to an influencer’s total social media content. The fear is that excessive advertising alienates followers and undermines an influencer’s credibility. However, real-world observations show that many ‘professional’ influencers maintain robust engagement despite frequent sponsorships. To resolve this discrepancy, the research team investigated how an influencer's endorsement rate affects the effectiveness of their sponsored posts.   Key Finding: The U-Shaped Engagement Curve Using a multi-method approach involving field studies on platforms like Instagram and Douyin alongside controlled experiments, the study identifies a consistent U-shaped relationship between endorsement rates and consumer engagement. The research suggests that consumer response is driven by the interplay of two countervailing psychological forces: Perceived Brand Recognition (The Benefit): As an influencer’s endorsement rate increases, they are seen as being more ‘validated’ by the marketplace. High-frequency endorsements signal strong market demand and commercial value, which can boost an influencer’s legitimacy in the eyes of followers. Perceived Manipulative Intent (The Cost): Conversely, as influencers move away from purely organic content, audiences may become suspicious of their commercial motives, fearing the influencer is merely attempting to profit from them. At low endorsement rates, influencers are valued for their authenticity. At high rates, they are accepted as professional endorsers whose commercial role is a recognized norm. However, influencers in the middle of the spectrum often lack a clear identity, failing to provide either deep emotional connection or specialized shopping guidance, leading to the lowest levels of engagement.   Strategic Moderation: Organic Mentions and Brand Consistency The study further identifies two critical strategies that influencers and marketers can use to navigate this U-shaped dynamic: Organic Product Mentions: When influencers frequently discuss a product type organically (without being paid), subsequent sponsored posts for similar products appear more intrinsically motivated. This "genuine interest" helps mitigate audience suspicion of manipulative intent, flattening the engagement curve. Brand Endorsement Consistency: Repeatedly collaborating with the same brand can signal loyalty. However, it may also limit the influencer’s perceived "market appeal" to other brands, potentially weakening the positive signal of broad industry recognition.   Managerial Implications: Go Big or Stay Small The research offers a clear framework for selection and positioning: Avoid the Middle Ground: Marketers should prioritises influencers with clearly defined identities—either as organic content creators (low endorsement rate) or professional endorsers (high endorsement rate). Intermediate endorsement ranges (typically around 40%–52% depending on the platform) should generally be avoided. Encourage Niche Passion: Influencers aiming for commercial growth should maintain a high level of organic discussion within their niche to build trust before and during their transition to more frequent sponsorships. Diverse Portfolios: To enhance perceived brand recognition, influencers should aim for a diverse portfolio of brand collaborations rather than relying solely on a single partner.   By understanding the dual impact of brand recognition and manipulative intent, firms can make more informed selections that ensure influencer partnerships remain a high-impact marketing tool.   This study, titled "Endorsement Rate in Influencer Marketing", is published in the Journal of Marketing. The work was partially supported by the Research Grants Council of Hong Kong.   For other publications, please visit: https://www.polyu.edu.hk/mm/research/selected-a-papers/