The Monetization of Opinions: Consumer Responses to Covert Endorsement Practices on Instagram
J. Harrison · Journal of Promotional Communications · 2018
The rapid emergence of digital endorsers in recent years has generated a billion-dollar ‘influencer’ industry as brands race to exploit the growing pool of endorsers and reach consumers in a more authentic way, circumventing resistance to traditional advertising. Eager to monetize their channels and audiences, many of these ‘peer’ endorsers are saturating the platforms with brand-sponsored content which often attempts to conceal the commercial source. Although advertising authorities have introduced new disclosure regulations aimed at sponsored digital endorsements, many endorsers still fail to include full disclosure and regulators have issued a fresh call for academic research to address concerns of deception and manipulativeness. At the same time, digital endorsers are beginning to receive negative attention towards their behaviour and there is evidence that consumers are becoming sceptical of their ‘authentic’ lifestyles and ‘genuine’ recommendations. What originated as an authentic way for brands to reach consumers is now at risk of becoming just as staged as its marketing predecessor. While the effects of traditional celebrity endorsements have been extensively researched, there is a lack of academic research surrounding sponsored ‘peer’ endorsers on social networks, notably Instagram. Likewise, there is little research available which examines consumer responses to covert marketing via social media and the consequences of the practice for brands. This study employed a qualitative research approach, conducting eight in-depth interviews to reveal rich new insights on the perceptions and attitudes consumers hold towards sponsored endorsement activity on Instagram, specifically the covert nature of much of the practice. Findings indicate a rising level of consumer distrust and scepticism towards both Instagram endorsers and involved brands, as they see through the inauthenticity of the recommendations pushed at them. Furthermore, the study suggests current practices are manipulating and persuading consumers while unaware.Â