“The Bubble Is Starting To Burst” For Online Social Media Influencers | Zero Hedge
One of the first brands to ever use social media influencers for advertising, Ipsy, is again leading the way – but this time, in pulling back from social media, according to the Wall Street Journal.
Brands like Ipsy are left questioning whether or not the advertising is worth it, since they have no way to measure sales or verify how many people see ads. Influencer advertising and sponsored content, meanwhile, has become the equivalent of a 30 second TV spot, with big name stars getting as much as $100,000 or more for a single ad.
But now there is an air of deceit over the marketplace, as many influencers have inflated their follower counts by buying fake followers by the thousands. Influencers have also damaged their credibility with their followers by promoting products that they don’t use.
JaLynn Evans, a 19-year-old student at Virginia Commonwealth University said:
“All these paid posts make you question whether influencers are genuine or just doing it for the money.”
We hate the disappoint you, JaLynn, but you’re probably not going to like the answer…
This loss of trust has undermined the power of influencers. Marcelo Camberos, Ipsy’s chief executive said: “Have they peaked? I don’t know.”