The Cost of Influencer Fraud: Are you losing 15% of your budget? be losing a significant
Until now, brands have
tor of Content Strategy at
amount of your budget
been blindly spending
Tagger
to influencer fraud.
their marketing dollars
In our previous article we
It’s no secret that influ-
looked at how the fake
encers with profiles big
follower industry works,
and small are guilty of in-
and the reasons why it
flating their followers and
exists. Here Tagger’s di-
engagement numbers in
rector of content strate-
order to secure coveted
gy, Kelsey Formost, talks
brand partnerships.
about how you could
without knowing how much of their efforts were being shown to fake and inactive accounts. So how much is influencer fraud really costing marketers per year, and more importantly, what can we do to reverse the trend?
A new study by Professor Roberto Cavazos of the Merrik School of Business reports that brands will lose about $1.3 billion this year to influencer fraud. In an industry that’s projected to spend $8.5 billion this year globally, a $1.3 billion lossor just over 15% of the market- is incredibly significant. But the situation isn’t as
tem, and investing in new
The platform on which
dire as you may think:
technology that allows us-
campaigns are running,
brands can protect them-
ers to measure authenticity
the size of an influencer’s
selves from fraud and work
as well as engagement.
following, and the ability to
to reverse the industry trend by learning more about how influencers have been scamming the sys-
38.
There are a few overall factors that affect brands’ monetary loss per contract:
use technology to measure both the authenticity and the activity level of an influencer’s followers.
Airline Marketing Monthly | January 2020
By Kelsey Formost, Direc-
