How Influencers Are Changing the Way We Shop Online

These factors gave online content creators the ability to influence their followers when they recommended products, hence the term “influencers.”

Marketers began to realize the potential influencers had and started sending them free products in exchange for a blog post or review. Savvy influencers charged for this service, known as a sponsored post.

Posts like these were better received than ads directly from brands, which were often ignored by users who could spot advertisements instantly.

At this relatively early stage, follower count was still seen as the most important metric. Marketers looked for influencers with the biggest audiences to get their ads in front of as many people as possible.

It wasn’t until later that this began to change and marketers started looking at what we would now call engagement rate —the responsiveness of an influencer’s following. New software helped to provide data about influencers’ accounts and their audiences, allowing marketers to target their campaigns with more precision. Afterward, they could measure how engaged an influencer’s audience was.

Many marketers found that engagement was higher (and their campaign more cost-effective) when they worked with multiple influencers with 5-figure followings than 1 influencer who had a 6-figure following. It’s this approach that really marked the start of influencer marketing as we know it today.

Generally, influencers can be split into the following groups:

Some of the top influencer niches include:

Beauty

With cosmetics, skincare, bodycare and hair care all being so visual, it’s no surprise beauty is one of the biggest influencer niches out there, reportedly worth $534.00 billion in 2022 and predicted to grow by 5.86% by 2026.

Beauty influencers review products, share tutorials, and may even delve into more personal subjects like self esteem and acne. There are even niches within the niche, from sustainability and animal-friendly products to super-glam looks and high-end products. The most popular beauty influencers give their honest opinions and are trusted by followers for their authenticity.

Fashion

The fashion industry is worth $990 billion in 2022. And there’s no doubt fashion influencers have caused change within it, to the point where those at the top might be asked to create a collection with a brand or sit in the front row at a show.

It’s easy to generalize fashion, but influencers within this industry will have their own niches – perhaps they focus exclusively on high-end pieces, or their audience is plus-size women.

Lifestyle

A lifestyle influencer shares elements of their life in a considered way. The broadness of this category means there are all sorts of niches within it; after all, there are many ways to live. The lifestyle industry is expected to be worth $10.62 billion by the end of 2022.

Celebrities

Not all influencers could be considered celebrities, even if they are very well known in their respective fields, although some do grow their platforms enough. And while all celebrities could perhaps be considered influencers to an extent, some lean into this more than others. Household names such as Kim Kardashian, Dwayne "The Rock" Johnson, and Reese Witherspoon, for example, use their social media platforms to promote products (like Kardashian’s promotion of various wellness and beauty products), share information about their lives (like Johnson’s cheat meals), and promote their businesses (like Witherspoon’s book club and clothing line).

Travel

Travelling is hugely popular, predicted to contribute $8.6 trillion to the global economy in 2022 alone, so it makes sense that people would want to hear about real-life experiences rather than only being able to read marketing spiel. And that’s where travel influencers come in. They give us insight into destinations all over the world, offering recommendations, advice, and reviews of accommodation and attractions, along with beautifully shot photos and videos. As with lifestyle, there are many niches within the niche, from luxury travel to backpacking.

On a less positive note, travel influencers have led to a rise in people choosing their holiday destinations based on how "Instagrammable" they are. Some of the most Instagrammed places in the world include the Eiffel Tower in Paris, France; the Bund in Shanghai, China; the Burj Khalifa in Dubai, United Arab Emirates; Sydney Opera House in Sydney, Australia; and Pyramid de Teotihuacan in Mexico City, Mexico.

Health and fitness

As most social media platforms are so visual, health and fitness influencers can easily demonstrate the results of their training, nutrition, and other wellness habits, thus marketing their services. The health and fitness industry was worth $54.2 billion in 2021, so there’s clearly a demand from audiences. Influencers might focus on a specific element of health and fitness, such as cardio, strength training, nutrition, or yoga, or take a more rounded approach.

Sports

With numerous sports events taking place around the globe, it makes sense that fans would come together to discuss them, and some have set themselves apart as they become influencers within their field of interest or expertise. The players and athletes may also become influencers themselves, promoting their sponsorship and connecting with fans. The industry’s worth is expected to grow to $501.43 billion in 2022.

Gaming

The gaming industry is one that endures and changes to reflect the times, with its current worth estimated to be around $300 billion. With the invention of social media, gamers are able to review new games and consoles, and even stream themselves playing the games live, or commentating on other players’ efforts.

Business

Often found on LinkedIn, business influencers speak about all aspects of the working world, from making money to creating a good culture in the workplace. And the growing popularity in this niche shows in its worth, with its value set to be around $16.4 billion by the end of 2022.

Family and parenting

Lots of people become parents and this is reflected in the worth of the baby products industry, which is valued at around $214.3 billion. But most people worry about whether they’re doing it right when their children are born, and even during pregnancy. Family and parenting influencers alleviate some of that stress by sharing practical advice, recommendations, and their own stories.

Animals

Appealing to pet owners and just about anyone who loves animals, these influencers dedicate their accounts to their pets, sharing sweet and entertaining photos and videos, as well as advice for owners and recommendations for products like food, toys, and bedding. Niches often fall within animal breeds, from more common pets like dogs and cats to more unusual pets like chickens and rats. Globally, the pet care industry is worth around $261 billion and is predicted to grow to $350 billion by 2027.

And we’re more critical of the impact brands are having on the world, too.

What To Be Wary Of

There’s been a shift as influencer marketing has grown. Two of the factors which made influencers so appealing to begin with — trust and relatability — have been tested:

These changes have created a disconnect between influencers and their audiences. People are more skeptical and less trusting than they used to be, but that doesn’t mean the power of influencers has been diminished ...

It simply means perceived authenticity is more important than ever before. Consumer expectations are higher; no one likes feeling that they’ve been misled.

Advertising Rules

With the influencer marketing industry growing so quickly, advertising regulators have found it difficult to keep up, although that seems to have changed over the last few years.

In the U.S., influencer marketing is governed by the Federal Trade Commission (FTC). Any claims made in advertisements “must be truthful, cannot be deceptive or unfair, and must be evidence-based.” Influencers and the brands they work with must clearly disclose their partnerships, including monetary exchanges, gifted products, discounted products, or any other benefits that may encourage the influencer to promote the brand. The FTC has a guide called “Disclosures 101 for Social Media Influencers” which gives examples of when and how an influencer should disclose a brand endorsement.

An influencer is endorsing a product, service, or brand any time they:

• Post a photo of it
• Tag the brand
• Mention the product in a photo caption, even if the photo doesn’t feature the product or tag the brand
• Like, pin, or otherwise show it to their followers

However, they only need to disclose an endorsement when there’s a material connection between them and the brand. Truth in Advertising explains that material connections can include monetary payment, gift cards, employee or business relationships, friendships, or family relationships, amongst others.

What To Look For in an Influencer’s Shoppable Posts

• Have they clearly identified the post as an ad? Or have they hidden the disclosure amongst hashtags or links?
• Have they used the social media platform’s tools for disclosing endorsements and added other information, too?
• Is the brand they’re working with one they’ve used before and posted about of their own volition?
• Does the brand fit with the influencer’s values?
• Have they thoroughly tested the product or service they’re promoting?

Debt and Fear of Missing Out (FOMO)

The internet in general has led to what’s been coined as the fear of missing out, known colloquially as FOMO. It’s understandable – if you can see what friends, acquaintances and even strangers do, own, and wear simply by looking at your device, you’re more likely to wonder whether you measure up. It’s easier to compare yourself, which can lead to feelings of inadequacy if you’re not in a good frame of mind. Alternatively, you may become excited about what someone has shared. Either of these feelings can lead to you buying a product or experience an influencer has posted about, especially if they’re someone you admire.

Unfortunately, the desire to keep up with influencers and boost their own social media profiles can drive people into debt. A poll by BBC Radio 5 Live and the Huffington Post found that 39% of 20 to 29-year-olds agreed targeted advertisements on social media caused them to part with money they might not have spent otherwise.

Social media can become a financial problem when it turns into a spending competition,” says personal finance expert Salman Haqqi . “You must remember that lots of social media influencers are paid by brands or receive things like holidays or products for free, so they don’t actually pay for their lifestyle themselves."

Final Thoughts

It's clear that influencers are here to stay, even with the increase in regulations and audiences’ appetite for authenticity. Brush up on your knowledge of influencer marketing and you’ll be able to shop on social media with confidence.