How to Prevent Influencer Marketing Fraud

Influencer Marketing fraud occurs when a business pays for a promotion and the results or promotion itself are affected by disingenuous actions. A consequence of the rise in use of Influencer Marketing is the risk of falling victim to fraud. Influencers can take various actions to deceive brands. These actions include buying followers, buying engagement such as likes and comments and efforts to inflate their ability to influence.

Why Fraud Exists

Businesses have been slow to react to the risk of fraud and many have fallen become victims. It is easy to work with influencers, they are paid for content and post it. It’s simple. However, a consequence of this is a lack of compliance and due diligence resulting in Influencer Marketing fraud.

The Audience is What Matters

There is currently no way to quantify the value of an influencer with an audience of 1 million vs an audience of 10,000. Because of this, an assumption is made that 1 million is more valuable. This results in a lack of focusing on what matters, and that is, how relevant is the audience. This lack of focus fuels Influencer Marketing fraud as brands are focused on the wrong things when investing.

The influencer with an audience of 1 million may have zero relevant persons to a brand. The influencer with an audience of 10,000 may have 9,000 relevant persons to a brand. The challenge is, without a means to testing audience relevance, brands are exposed to Influencer Marketing fraud or the need to purchase tools to assess fraud which can be costly.

A Solution to Influencer Marketing Fraud

The recommendation in the video is to implement a paid on results Influencer Marketing model. This model mitigates against fraud by only paying on results. If an audience is relevant, it will convert and the brand can invest in that influencer. However, if the audience isn’t relevant or if the audience is fraudulent, there is no commercial risk as Influencer Marketing fraud relies on advanced payment to work.


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