Many influencers, including MrBeast (left), and SSSniperWolf, show products in their videos. via YouTube (YouTubers); Shutterstock.com (all other images)

Your Favorite YouTube Star Is Trying to Sell You Something

Influencers and companies are teaming up to market products to young people. Here’s what you need to know.  

During a recent YouTube video, 26-year-old lifestyle influencer Katy Bellotte modeled her new wardrobe with delight to her 470,000 subscribers.

“Guys, I’m speechless,” she said, gushing over the clothing brand she was wearing and proceeding to try on multiple looks before moving on to talk about her plans for the evening.

Bellotte is one of many influencers who get paid by companies to show off their merchandise. You’ve probably seen plenty of YouTube videos or social media posts raving about a particular product. Although you might be watching to be entertained or to learn something, the YouTuber didn’t create this video just to amuse you. Often, they’re trying to get you to buy the products featured, and advertisers are paying the influencer to do it.

Surprised? Many influencers with large followings on social media earn money by marketing companies’ products through their videos and posts. Their content helps companies influence the spending habits of millions of people, including teenagers.

While such partnerships benefit advertisers and influencers, they may not always be in the viewers’ best interest, experts say.

“These things are very deliberate, and people are making a lot of money off of them,” says Christine Elgersma of Common Sense Media, a nonprofit focused on media and kids.

During a recent YouTube video, Katy Bellotte modeled her new wardrobe with delight.

“Guys, I’m speechless,” she said, gushing over the clothing brand she was wearing. She then began trying on several looks before moving on to talk about her plans for the evening.

Bellotte, a 26-year-old lifestyle influencer, has 470,000 subscribers. She is one of many influencers who get paid by companies to show off their products. You’ve probably seen plenty of YouTube videos or social media posts raving about a specific product. You might be watching to be entertained or to learn something. But the YouTubers didn’t create these videos just to amuse you. Often, they’re trying to get you to buy the products featured, and advertisers are paying the influencers to do it.

Surprised? Many influencers have large followings on social media. Those who do can earn money by marketing companies’ products. Their content helps companies influence the spending habits of millions of people, including teenagers.

Such partnerships benefit advertisers and influencers. Still, they may not always be in the viewers’ best interest, experts say.

“These things are very deliberate, and people are making a lot of money off of them,” says Christine Elgersma of Common Sense Media, a nonprofit focused on media and kids.

via YouTube

Influencer ZHC

How Influencers Get Paid

Some ads on social media are easy to spot. On YouTube, for example, commercials pop up at the start, middle, and end of many videos. Creators with enough subscribers and views can get paid for those ads—but reportedly only about 2 cents per ad view.

That’s why influencers also seek out brand sponsorships. Companies give creators with many fans free merchandise in exchange for promoting the company’s products in their posts and videos. As a result, a family channel might always unbox a certain brand of toys, or a food influencer might suggest ingredients made by a particular company.

Some ads on social media are easy to spot. For example, commercials on YouTube pop up at the start, middle, and end of many videos. Creators with enough subscribers and views can get paid for those ads. However, they reportedly make only about 2 cents per ad view.

That’s why influencers also seek out brand sponsorships. Companies give creators with many fans free merchandise as part of a deal. In turn, the content creators must promote the company’s products in their posts and videos. As a result, a family channel might always unbox a certain brand of toys, or a food influencer might suggest ingredients made by a particular company.

‘Word of mouth is the best form of marketing ever.’

When creators reach about 200,000 subscribers, companies typically start paying them for such promotions, explains Joe Gagliese of Viral Nation, an influencer marketing agency. The more engaged fans are—regularly sharing and commenting on the influencer’s content—the more money the creator can earn, he says.

Many of these influencers may genuinely like the brands they work with.

“Of course I only want to be sponsored by brands and endorse products that I use and like,” Bellotte told Business Insider, “but then even if I like the product, if the brand itself doesn’t have a strong foundation and doesn’t have the values that I look for, I don’t work with them.”

When creators reach about 200,000 subscribers, companies typically start paying them for such promotions, explains Joe Gagliese of Viral Nation, an influencer marketing agency. And how much fans share and comment on the influencer’s content is important. The more engaged fans are, the more money the creator can earn, he says.

Many of these influencers may genuinely like the brands they work with.

“Of course I only want to be sponsored by brands and endorse products that I use and like,” Bellotte told Business Insider, “but then even if I like the product, if the brand itself doesn’t have a strong foundation and doesn’t have the values that I look for, I don’t work with them.”

Hidden Ads

The problem is that many influencers don’t broadcast their sponsorship deals. Instead, they disguise the ads in their normal content—a technique called product placement.

An influencer who does trick shots might use just one brand of sports equipment. Another might center challenge videos around a specific product—painting it, destroying it, or giving it away. And some product placements can be as simple as a gamer always wearing a certain logo or sipping a specific sports drink whenever they’re on camera.

“I think kids are pretty used to seeing traditional commercials, but if you have a person that they look up to and trust and watch very regularly endorse something, it’s really powerful,” Elgersma says. “It’s easy to make something not look like a commercial.”

Seeing your favorite influencer using or wearing a product can make you more likely to buy it yourself, experts say. One research firm found that 56 percent of 13- to 38-year-olds have purchased a product after seeing a social media post about it from someone they follow.

“Word of mouth is the best form of marketing ever,” Gagliese says.

The problem is that many influencers don’t make their sponsorship deals public. Instead, they hide the ads in their normal content. This tactic is called product placement.

An influencer who does trick shots might only use one brand of sports equipment. Another might center challenge videos around a specific product. They might paint it, destroy it, or give it away. Some product placements can be quite simple. For example, a gamer might always wear a certain logo or sip a certain sports drink whenever they’re on camera.

“I think kids are pretty used to seeing traditional commercials, but if you have a person that they look up to and trust and watch very regularly endorse something, it’s really powerful,” Elgersma says. “It’s easy to make something not look like a commercial.”

Seeing your favorite influencer using or wearing a product can make you more likely to buy it yourself, experts say. One research firm found that 56 percent of 13- to 38-year-olds have gotten a product after seeing a social media post about it from someone they follow.

“Word of mouth is the best form of marketing ever,” Gagliese says. “Influencers are just word of mouth magnified.”

Spotting the Sales Pitch

So how can you tell if creators really love a product or if they’re just getting paid to promote it? One big tip-off that influencers are making money is that the product appears prominently—such as in the title image of a video—or the product, its packaging, or the company logo pops up multiple times in the post.

Ask yourself: Why might the influencer be promoting this product? What claims are they making about it?

And get feedback before you buy. Ask friends and family for opinions or check out reviews from people who haven’t been paid or given the product for free.

If your favorite creators are pushing products, it doesn’t mean you have to stop watching them. Just watch with a critical eye. If you’re able to recognize how companies are sneakily trying to sell you something, you’ll have a choice about how to respond, Elgersma says.

That way, she adds, “you’re able to make an informed decision, rather than being a passive pawn in all of the tactics that are being used.”

So how can you tell if creators really love a product or if they’re just getting paid to promote it? You can figure out if influencers are making money by looking at how the product appears. The product might have a leading placement, such as in the title image of a video. The product, its packaging, or the company logo might also pop up multiple times in the post. These signs are huge tip-offs.

Ask yourself: Why might the influencer be promoting this product? What claims are they making about it?

Get feedback before you buy. Ask friends and family for opinions. And check out reviews from people who haven’t been paid or given the product for free.

If your favorite creators are pushing products, it doesn’t mean you have to stop watching them. Just watch with a critical eye. If you’re able to recognize how companies are sneakily trying to sell you something, you’ll have a choice about how to respond, Elgersma says.

That way, she adds, “you’re able to make an informed decision, rather than being a passive pawn in all of the tactics that are being used.”

Other Ways Creators Ca$h In

Shutterstock.com

SELLING MERCH Many influencers sell custom T-shirts, hoodies, decals,
and more. They promote their merchandise by wearing it on-screen.

SHARING LINKS Creators may recommend a product and provide a sponsored link for you to purchase it. They receive a percentage of the sale when someone buys the product through the link.

SHOWING ADS Some YouTubers with 1,000 subscribers or more receive a small payment for each pop-up commercial that people watch at the start of and during their videos.

SELLING MERCH Many influencers sell custom T-shirts, hoodies, decals,
and more. They promote their merchandise by wearing it on-screen.

SHARING LINKS Creators may recommend a product and provide a sponsored link for you to purchase it. They receive a percentage of the sale when someone buys the product through the link.

SHOWING ADS Some YouTubers with 1,000 subscribers or more receive a small payment for each pop-up commercial that people watch at the start of and during their videos.

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