YouTube influencers amass followers by filming everything from popping pimples to reviewing lipstick, with businesses watching closely for marketing opportunities. But audience loyalty only goes so far.
When YouTubers post too many paid promotional videos, their reputations start to suffer, as research by Harvard Business School Assistant Professor Shunyuan Zhang has discovered. Airing a sponsored video—versus original, unaffiliated content—costs an influencer 0.2 percent of their subscribers on average within three days following the sponsored post. A back-of-the-envelope calculation suggests that the effect translates to an average of $10,000 over an average six-year-career influencer.
[This article was provided with permission from Harvard Business School Working Knowledge.]