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The Business of Fashion on Instagram

The Business of Fashion on Instagram

An essential daily resource for fashion creatives, executives and entrepreneurs all over the world.

50 percent of engagement on sponsored content is probably fake, with influencer fraud now a billion-dollar problem. Whether it s buying followers or hiring  click farms  to like or comment on posts, this problem will cost advertisers 1.3 billion in 2019, according to a study by the cybersecurity company Cheq and the University of Baltimore. That figure is projected to grow to 1.5 billion next year. It s an intractable problem that has swelled along with the wider #influencer economy, despite the best efforts of #socialmedia platforms, brands and cybersecurity experts. Marketers this year will spend 8.5 billion on influencers, according to Mediakix, which forecasts that spending to hit 10 billion next year. Stories about influencers who buy #followers and automate their online presence in order to inflate their social media numbers cause scepticism amongst consumers who look to influencers for shopping suggestions. It also erodes the confidence of brands that believe they are getting what they ve paid for.

The tactic of buying followers isn't just common   it's also incredibly easy. Although #Instagram has claimed it purged many fake accounts from the platform, and continues to do so, the industry for buying fake followers is thriving. But as Roberto Cavazos, a University of Baltimore professor and economist who was commissioned by Cheq to write the report noted, the issue hasn't changed and influencer fraud will likely continue to grow as the market becomes more complicated with the rise of micro-influencers and nano-influencers, who brands hire by the dozen to promote products to niche audiences. What can brands, advertisers and the social media platforms themselves do to tackle the issue? Weigh in below and read the full story at businessoffashion.com [Link in bio]  : @shutterstock
50 percent of engagement on sponsored content is probably fake, with influencer fraud now a billion-dollar problem. Whether it s buying followers or hiring click farms to like or comment on posts, this problem will cost advertisers 1.3 billion in 2019, according to a study by the cybersecurity company Cheq and the University of Baltimore. That figure is projected to grow to 1.5 billion next year. It s an intractable problem that has swelled along with the wider #influencer economy, despite the best efforts of #socialmedia platforms, brands and cybersecurity experts. Marketers this year will spend 8.5 billion on influencers, according to Mediakix, which forecasts that spending to hit 10 billion next year. Stories about influencers who buy #followers and automate their online presence in order to inflate their social media numbers cause scepticism amongst consumers who look to influencers for shopping suggestions. It also erodes the confidence of brands that believe they are getting what they ve paid for. The tactic of buying followers isn't just common it's also incredibly easy. Although #Instagram has claimed it purged many fake accounts from the platform, and continues to do so, the industry for buying fake followers is thriving. But as Roberto Cavazos, a University of Baltimore professor and economist who was commissioned by Cheq to write the report noted, the issue hasn't changed and influencer fraud will likely continue to grow as the market becomes more complicated with the rise of micro-influencers and nano-influencers, who brands hire by the dozen to promote products to niche audiences. What can brands, advertisers and the social media platforms themselves do to tackle the issue? Weigh in below and read the full story at businessoffashion.com [Link in bio] : @shutterstock

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