The Impact of Influencer Marketing Investment on Investor Behavior in the Digital Era
Introduction:
In the digital age, marketing strategies have evolved rapidly, with influencer marketing emerging as a powerful tool for shaping consumer perceptions—and increasingly, investor sentiment. Influencers, with their large and loyal followings on platforms like YouTube, Instagram, TikTok, and X (formerly Twitter), have become key voices in the promotion of products, brands, and even investment opportunities.
This research explores the growing trend of businesses investing in influencer marketing and its subsequent impact on investor behavior. With the increasing overlap between consumer engagement and stock market activity, this paper analyzes how social media endorsements and influencer-driven narratives can influence retail investor decisions, perceived company valuation, and market trends.
Objectives:
- To examine how influencer marketing influences investor perceptions of a company.
- To analyze whether influencer-driven brand exposure leads to changes in stock performance or trading volume.
- To explore the psychological impact of influencer trust on investment decisions.
- To evaluate whether companies that invest in influencer marketing experience shifts in investor demographics or behavior.
Research Questions:
- How does influencer marketing impact investor confidence and decision-making?
- Are there measurable effects of influencer campaigns on company stock prices or market activity?
- Do retail investors rely on influencer endorsements when making investment choices?
- How does influencer marketing contribute to speculative behavior or "hype investing"?
Significance of the Study:
As the line between marketing and investing blurs in the digital economy, understanding the influence of non-traditional marketing—like influencer campaigns—on investor behavior is critical. This study offers valuable insights for companies, marketers, and investors navigating this new intersection of finance and social media, helping to clarify whether influencer marketing drives long-term investor value or short-term market volatility.
