What Is Influencer Marketing? An Industry on the Rise

A group of avid social media users
Listen

$15 billion. It’s the estimated worth of the influencer marketing industry come 2022. If that seems like a lot, it will appear even more extreme when you consider the same industry was worth ‘just’ $8 billion in 2019.

But, what is influencer marketing?

If you follow brands like McDonald’s and Dunkin’, you’ve likely got a good taste for its modern day use-case. Earlier this month, McDonald’s partnered with artist Travis Scott and Dunkin’ with Tik Tok star Charli D’Amelio to create a signature meal and drink named after the two pop-culture icons.

Associate Professor of Marketing Anjali Bal says these contracts and product placements, no matter how simple they are, can build a connection between company and customer in ways not otherwise possible. 

What Is Influencer Marketing?

Bal defines influencer marketing as a type of social media marketing that uses endorsements made by people, organizations, and/or groups seen as influential or experts in a particular area.

“The nature of influencer marketing is that consumers tend to trust information coming from influencers more than traditional marketing and advertisements,” Bal says. “It can also be seen as a modern form of a celebrity endorsement.”

These real-time product placements and demonstrations, most frequently used in conjunction with Instagram, have unsurprisingly correlated with the rise of social media.

“Because of the changes to how we view content, marketing had to adjust,” Bal says, mentioning how streaming services, which have largely replaced cable among younger generations, typically do not advertise in the middle of production. “We are seeing Millennials and Generation Z move to social media as their primary source for information. Companies that want to be relevant to these target markets need to show their products and services where their consumers are.”

Examples of Influencer Marketing, and How Followings Are Built

According to Bal, influencers like Kylie Jenner, Cristiano Ronaldo, and Selena Gomez successfully market products to their audiences through their likability, memorability, adaptability, and meaningfulness.

These soft advertisements include everything from serums, to cologne, to ice cream.

“When the consumer is soliciting information themselves, they are more likely to be influenced by it.”

Anajli Bal, Associate Professor of Marketing

“If the individual is likable, they get people in the door,” Bal said. “But, all of these things work together to both build and then maintain a following.

“When the consumer is soliciting information themselves, they are more likely to be influenced by it,” she added. “A traditional ad can be seen as interrupting what I really want to do, whereas the influencer product placement is often seen as less aggressive.”

Posted in Insights

More from Insights »

Latest Stories

Collage of four photos depicting Babson teams celebrating
Keeping Score: A Look at Babson Athletics’ Success by the Numbers From national and conference championships to academic achievements, Babson’s student-athletes continue to post impressive statistics. Here is a look at the numbers behind Babson Athletics’ successes.
By
Eric Beato
Editor / Writer
Eric Beato
Eric Beato is the Editor of Babson Thought & Action and Babson Magazine. A native of Chicago and a graduate of the University of Missouri School of Journalism, Eric has worked as an editor and writer at newspapers across the country, including the Chicago Sun-Times and Boston Herald. Eric joined Babson College in 2019 after working as the communications director for a private educational travel company and as the managing editor of six regional sports publications.
July 2, 2025

Posted in Community

A clear tip jar with cash sits on a counter
What Ending Taxes on Tips Could Mean for Workers and Tippers Babson thought leaders on tax policy explain how a federal proposal that includes eliminating taxes on tips might reshape the tipping economy.
By
Hillary Chabot
Writer
Hillary Chabot
Hillary Chabot is a writer for Babson Thought & Action and Babson Magazine. An award-winning journalist, she is known for her insightful reporting and dedication to detailed storytelling. With a career spanning over two decades, she has covered a wide range of topics, from presidential campaigns and government policy to neighborhood issues and investigative series. As a reporter for The Boston Herald, Hillary earned a reputation for tenacity and integrity. Her work at Babson College fuels her passions—to learn something new every day and conduct thoughtful, empathic interviews. She’s thrilled to be at Babson College, where students, faculty, staff members and classes provide compelling copy daily.
July 1, 2025

Posted in Insights

Members of the Babson community behind a Pride banner at the parade
Passion and Pride: How the Office of Belonging and Inclusion Supports the LGBTQ+ Community Babson’s participation in the Boston Pride Parade caps a busy and productive year of support for the LGBTQ+ community by the Office of Belonging and Inclusion, as it advances the College’s commitment to Inclusive Excellence.
By
Hillary Chabot
Writer
Hillary Chabot
Hillary Chabot is a writer for Babson Thought & Action and Babson Magazine. An award-winning journalist, she is known for her insightful reporting and dedication to detailed storytelling. With a career spanning over two decades, she has covered a wide range of topics, from presidential campaigns and government policy to neighborhood issues and investigative series. As a reporter for The Boston Herald, Hillary earned a reputation for tenacity and integrity. Her work at Babson College fuels her passions—to learn something new every day and conduct thoughtful, empathic interviews. She’s thrilled to be at Babson College, where students, faculty, staff members and classes provide compelling copy daily.
June 27, 2025

Posted in Community