Rise of Fashion Influencers

The rise of fashion influencers as a new form of celebrity endorsement has given brands a closer relationship with their audience, as influencers interact with followers daily across multiple channels. Influencers generate revenue through brand co-operations and affiliate links, with their economic value measured by the number of followers, demographics, engagement rate, and fit between influencer and brand. The fashion industry spends around €1bn on sponsored Instagram posts per year. Successful influencers generate an income that enables them to quit their jobs and focus solely on their social media career, but only a minority earn between $10,000-25,000 per campaign and only three earn more than $25,000. Influencer campaigns can increase sales, with the success of affiliate platforms and successful examples such as the #mangogirls campaign indicating that influencer engagement affects sales. However, influencers have been criticised for their lack of transparency on sponsored posts, with the US Federal Trade Commission sending out dozens of warning letters to Instagram influencers in 2017, calling for more transparency in the disclosure of advertising and sponsored posts.