New Research Shows How Brand Deals Can Hurt Influencer Reputation and Reduce Audience Engagement
New INFORMS Management Science Study Key Takeaways:
- Sponsored Content Can Damage Reputation: Posting a sponsored video leads to a 0.19% drop in subscriber count compared to an equivalent organic video.
- Bigger Influencers Face Bigger Risks: More popular influencers experience a stronger negative reaction to sponsored posts.
- Content Fit and Brand Popularity Matter: Sponsored content that aligns with an influencer’s usual style – or promotes a lesser-known brand – reduces the negative impact on influencer reputation.
BALTIMORE, MD, February 25, 2025 – In an era in which influencer marketing dominates digital platforms, a groundbreaking study in the INFORMS journal Management Science unveils a surprising reality: sponsored content can harm an influencer’s reputation and reduce audience engagement.
Analyzing thousands of YouTube videos from top beauty and style influencers, researchers uncovered what they call a “reputation-burning effect” – a measurable decline in subscriber count following sponsored posts.
Compared to equivalent organic, unsponsored content, posting a sponsored video leads to an average 0.19% decrease in an influencer’s subscriber count. Although that percentage may seem small, for influencers with millions of followers, even minor losses can have significant financial and reputational consequences.
This effect was particularly pronounced for larger influencers, suggesting that the more popular the creator, the higher the stakes.
“If consumers don’t perceive influencers as trustworthy and authentic, much of their marketing efforts may not lead to the desired outcomes,” says Mengjie (Magie) Cheng, co-author and doctoral student at Harvard University.
The study, “Reputation Burning: Analyzing the Impact of Brand Sponsorship on Social Influencers,” also identified strategies that can mitigate the negative impact of sponsorships:
- Content Alignment Matters: Sponsored content that closely matches an influencer’s typical style is more accepted by audiences.
- Smaller Brands Have an Advantage: Promotions for lesser-known brands tend to result in less audience backlash compared to high-profile brand deals.
For brands, the research challenges the assumption that bigger audiences mean better marketing results.
“Our work highlights that bigger isn’t always better when it comes to choosing influencers,” says Shunyuan Zhang, co-author and professor at Harvard University. “Brands need to think beyond follower counts and consider audience trust and alignment with the influencer’s content.”
The findings also suggest a role for social media platforms. By encouraging influencers to balance sponsored and organic content, platforms can help maintain audience trust, reduce disengagement and sustain long-term engagement.
As influencer marketing continues to evolve, this study raises critical questions about its long-term sustainability. How can influencers maintain authenticity while securing brand deals? How can brands structure partnerships that drive sales without eroding audience trust? Navigating this balance will be essential for influencers, brands and social media platforms.
About INFORMS and Management Science
INFORMS is the world’s largest association for professionals and students in operations research, AI, analytics, data science and related disciplines, serving as a global authority in advancing cutting-edge practices and fostering an interdisciplinary community of innovation. Management Science, a leading peer-reviewed journal published by INFORMS, publishes quantitative research on management practices across organizations. INFORMS empowers its community to improve organizational performance and drive data-driven decision-making through its journals, conferences and resources. Learn more at www.informs.org or @informs.
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Ashley Smith
Public Affairs Coordinator
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Catonsville, MD
[email protected]
443-757-3578