"Sponsornomics" – Examining the Impact of Influencer Marketing on Consumer's Purchasing Intentions

Abstract

Over the past decade, the rise of social media platforms has caused a prominent market opportunity for brands to offer endorsements or sponsorships through the medium of influencer marketing with some of the biggest creators in the world. Not only has this new form of advertising vastly shaped the current economy for industries ranging from technology, beauty, and fashion, but has also established these influencers as thought and opinion leaders. The development of a parasocial relationship in which an audience feels a genuine connection with their favorite online creators has led to a surge in brands leveraging social media influencers as a method of converting sales. This paper examines the causal effects of influencer characteristics on purchasing intentions using a questionnaire and analyzing regressions on these variables.