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Search & social · also called creator marketing

Influencer marketing

Influencer marketing is paying or partnering with social media creators to promote products to their followers through posts, videos or livestreams, which must be disclosed as advertising.

The short answer, from the AdTech Sumo glossary

Influencer marketing borrows trust. Instead of running an ad, a brand pays a creator on YouTube, Instagram, TikTok or another platform to feature its product in their own style. Deals range from free products for micro-influencers with a few thousand followers to multi-million-dollar partnerships with celebrities. Pricing can be flat fees, per post, per view, or affiliate commissions on sales.

Platforms support "branded content" tools that label paid partnerships, and brands can boost creator posts as paid social ads. Measurement uses reach, engagement, promo codes, affiliate links and increasingly brand lift studies.

Two big risks are disclosure and fraud. Regulators including the US FTC (through its Endorsement Guides) and India's advertising self-regulator ASCI require clear disclosure of paid relationships. And follower counts and engagement can be inflated with fake accounts, bought likes and engagement pods, so brands audit audiences before paying.

Think of it like this

Influencer marketing is like a friend recommending a restaurant, except the restaurant paid the friend, so the law says they have to tell you.

An example

A Korean cosmetics brand pays 20 creators in Indonesia US$1,500 each for a TikTok video; the videos gain 4 million views and a discount code records 3,000 sales.

Related terms

Sources: FTC: Endorsement Guides