The Positive and Negative Effects of Influencer Marketing on Consumers

Pétur Árni Ágústsson

Student thesis: Master thesis

Abstract

Influencer marketing is growing alongside the increased popularity of social media and is becoming a more important component of companies’ digital marketing strategies. This thesis explores the positive and negative effect of influencer marketing on Icelandic consumers.
Influencer marketing is similar to celebrity endorsement, but they provide different benefits and studies differ on which approach is more effective to reach consumers. The results of this thesis are based on qualitative approach where five semi-structured interviews with Icelandic millennials were conducted. The aim is to provide a deeper understanding of the individual opinions and experiences of consumers concerning influencer marketing. The analysis shows that influencer marketing has many positive and negative benefits. Influencer marketing has a positive effect on consumer engagement, brand awareness, word-of-mouth and consumer’s buying decision process. For influencer marketing to be effective, product match-up must be clear. When product match-up is poor, negative effects starts to appear. Another negative effect concerning influencer marketing is covert advertising.
As long as brands carefully select an honest and credible influencer that matches their product, the negative effects can be minimized.

EducationsMSc in Brand and Communications Management, (Graduate Programme) Final Thesis
LanguageEnglish
Publication date2019
Number of pages95
SupervisorsEdlira Shehu