[HN Gopher] Influencer cartels manipulate social media
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       Influencer cartels manipulate social media
        
       Author : zolbrek
       Score  : 88 points
       Date   : 2024-06-04 18:51 UTC (4 hours ago)
        
 (HTM) web link (cepr.org)
 (TXT) w3m dump (cepr.org)
        
       | yieldcrv wrote:
       | this is like a decade late to notice this technique, but, yes,
       | that market has matured a bit more since then, but mostly in the
       | size of the budgets
        
         | syndicatedjelly wrote:
         | Was there research a decade ago describing how these cartels
         | work?
        
           | rgrieselhuber wrote:
           | Observations can be made without research.
        
             | jl6 wrote:
             | Indeed, early observations and unproven hypotheses are part
             | of how we decide whether something is worth researching in
             | the first place.
        
       | bcheung wrote:
       | A lot of these social media promotions work by having people with
       | high follower counts blast you out and try to get their followers
       | to follow you.
       | 
       | The problem is that it is not an audience that would normally be
       | interested in or engage in your content naturally. There are
       | often artificial incentives to follow or engage in someone's
       | content. Often there is some kind of prize giveaway from a
       | "celebrity", that you have to follow everyone on a list to
       | qualify. That celebrity then gets paid to blast out the
       | promotion.
       | 
       | Then after the promotion all of a sudden your massive number of
       | new followers aren't engaging with your content anymore. What are
       | the algorithms going to assume now? Naturally that your content
       | is no longer any good.
       | 
       | It's common for influencers to share screenshots of their
       | analytics or publish them on their websites for people looking
       | for influencers. While the numbers might look impressive,
       | unfortunately, due to how the algorithms work -- mainly things
       | like vector embeddings and placing influencers in a some high
       | dimensional space, the algorithms no longer target and recommend
       | your content to an audience that would be interested.
       | 
       | It used to be that brands would look at your follower count and
       | see how many likes / comments you were getting, but even this is
       | faked now. As your engagement (likes / comments as a percentage
       | of your followers) goes down, they are sometimes artificially
       | propped up by purchasing likes and comments. This worsens your
       | engagement and leads to an endless downward cycle.
       | 
       | While someone might survive for a short while as an influencer
       | using these black hat strategies, brands will be unlikely to use
       | you again if they have not seen tangible results.
       | 
       | Also, if you intend to sell a product or have a certain ideal
       | customer avatar you are trying to market to, it makes sense to do
       | as much as you can to get engagement from that (and only that)
       | demographic.
       | 
       | Follower counts might look impressive on the surface but what
       | ultimately matters is whether you see conversions for your
       | business / brand.
        
         | bcheung wrote:
         | Also, I really wish social media platforms provided better
         | tools and didn't have policies that penalized you for deleting
         | followers that are bots or junk followers.
         | 
         | As a Las Vegas photographer that works primarily with models, I
         | often have random profiles blasting out my work. These profiles
         | mostly find sexy content and blast it out in hopes of growing
         | their own profiles. This mostly resulted in my followers being
         | 95% men from outside the US. This does absolutely nothing for
         | increasing my engagement with my actual target audience (female
         | models or would be models in the Las Vegas metro area wanting
         | to book photoshoots).
         | 
         | Unfortunately Instagram penalizes you and has actually removed
         | the search functionality from my follower list because I was
         | using it to delete bots and junk followers. They won't say this
         | officially but their support ignores my requests for why this
         | functionality no longer works.
        
           | nerdponx wrote:
           | Bot accounts prop up their KPIs _and_ they directly provide
           | revenue. They have clear incentives to allow such bots and
           | junk accounts to thrive on their platform.
        
             | bcheung wrote:
             | This makes perfect sense. If people were getting more
             | organic business conversions they wouldn't pay for
             | advertising as much.
        
       | TeMPOraL wrote:
       | Basically, swindlers swindling swindlers. Advertising industry is
       | not some paragon of ethics; it shouldn't be surprised that people
       | who deceive others for a living will use the same techniques
       | within industry as they use on regular people.
        
       | alexhackhack wrote:
       | manipulate and influence are similar. So why are people offended?
       | 
       | Influencers get paid for influencing/manipulating people. You now
       | got the concept. If that upsets you, you are kind of slow.
        
         | quantified wrote:
         | I wonder if you are downvoted for the last two snarky sentences
         | or the entire comment.
         | 
         | The business model is similar to payola. The companies who are
         | marketing via influencers would probably collude to drive up
         | prices to the degree they could, that is why there are so many
         | laws around that area of commerce.
         | 
         | As far as influencers go, it's sort of a weird space. Imagine
         | the popular kids in high school selling Mary Kay or Amway out
         | of their lockers.
        
       | nequo wrote:
       | Figure 1 in this post, showing algorithmically enforced collusion
       | in the cartel, is shocking to me as someone who hasn't spent any
       | time on Instagram.
       | 
       | The authors of the blog post describe their analysis in detail in
       | the "companion paper" on arXiv: https://arxiv.org/abs/2405.10231
        
       | TheAceOfHearts wrote:
       | I sometimes see certain memes related to some corporate content
       | pick up a ton of traction online and can't help but wonder if
       | they're organic or manufactured. Spreading subtle ads through
       | memes is probably still an under-explored area of marketing and
       | it bypasses modern ad-blocking techniques. The way I learned of
       | Invincible was through a couple memes, which eventually lead me
       | to research and watch the series.
       | 
       | To give a concrete example of another trend: a few years back
       | there was this group trend on TikTok of going to the theater
       | dressed up in a suit to watch some animated movie. You would only
       | need to pay a couple of large accounts to engage in this trend,
       | and then others will follow along because they want to fit in.
       | 
       | Another dimension through which content marketing will probably
       | expand in the future is by creating media that encourages people
       | to take sides and engage in discussions, like Giant Monkey vs
       | Giant Reptile, who wins? This trend is very popular within the
       | political landscape, but it could probably be twisted for
       | fictional IPs as well.
        
         | piyuv wrote:
         | Invincible is really cool though
        
           | LudwigNagasena wrote:
           | Not sure whether this comment is organic or manufactured.
        
             | ASalazarMX wrote:
             | It's completely organic, such as mine, where I also express
             | that Invincible is really cool.
        
         | gpspake wrote:
         | I feel bad because I mention it here all the time but "Trust me
         | I'm Lying" is a great book about modern guerilla marketing that
         | gives some concrete examples of the sort of things I'm always
         | skeptical of in "organic" online content. If I were in some
         | corporate or state think tank I'd be spending all day trying to
         | figure out how to get some post about "my wife's shirt" on the
         | front page of Reddit with my product or propaganda in the
         | background.
        
         | localfirst wrote:
         | ex) r/video, Youtube Shorts peddling dropship temu crap
        
         | standardUser wrote:
         | I don't love the increasing difficulty in telling if something
         | is genuine human expression or a marketing technique designed
         | to look like genuine expression. But as dystopian as that
         | murkiness can seem, I still prefer it to peak 90's pre-internet
         | advertising when record-breaking ad spending was primarily used
         | to scream relentless in our faces until we bought stuff or
         | developed a mental illness. Media in that era was far more
         | monolithic and almost entirely ad-driven, and it really felt
         | like the advertisers (and their favorite brands and
         | multinationals) had won all the battles and the war. All that
         | was left was to watch the latest Visa-sponsored TV event,
         | brought you you by Honda, with special considerations from
         | MetLife, all before a word from our sponsors over at Nestle.
         | Even the punk festival was run by a shoe company in the 90s.
         | 
         | Anyway, now I sometimes get ads for stuff that isn't shilled by
         | a multi-billion-dollar multinational and I barely every have to
         | watch an actual advertisement, so my vote goes to new hell over
         | old hell, no question.
        
       | TrackerFF wrote:
       | I've noticed that in my hobby (guitar), all the influencers will
       | release the same equipment reviews at the exact same time. They
       | often refer to each other, and do co-labs. Lots of "my buddy"
       | referrals, so to speak...
       | 
       | As for the first point, that's just how marketing works these
       | days. All the big influencers will get the equipment weeks
       | before, test it out, and make reviews with the clause that they
       | can't say anything about it until the agreed time. It of course
       | feels highly coordinated, and those new releases absolutely
       | dominate the social media, when the release/drop happens.
       | 
       | Then all the smaller influencers will feed off that, and drop
       | their own reviews the next days / weeks, or whenever they get the
       | equipment.
       | 
       | At one point, one starts to think - is it all authentic, or just
       | made-up stuff to increase views, affiliate sales, etc.
       | 
       | (This, of course, pales in comparison to the teen/beauty/etc.
       | influencers, that will band together in a shared house, create PR
       | friendships purely to pump up numbers, etc.)
        
         | candiddevmike wrote:
         | > At one point, one starts to think - is it all authentic, or
         | just made-up stuff to increase views, affiliate sales, etc.
         | 
         | I've always gone the opposite. At what point was any of this
         | authentic?
        
         | knallfrosch wrote:
         | Shipping pre-production test devices is a long-established
         | practise that predates the influencer era by decades.
         | 
         | Critics view movies before their release. Tech products are
         | shipped to tech publications beforehand. Journalists have
         | access to many press releases before they're published and on
         | and on.
         | 
         | The benefits for those involved are clear: Sources get a
         | coordinated press storm. Sources can restrict access to
         | flattering publications. The publications can "instantly"
         | release an in-depth review and beat their competition.
         | 
         | It's "only" all consumers who lose out. A free market might
         | provide independent reviewers with a chance to beat the
         | selected few on quality.
        
         | TacticalCoder wrote:
         | > It of course feels highly coordinated...
         | 
         | It's like mainstream media. If you follow them across several
         | countries you see the exact same pattern: they work on
         | something together but put an embargo on the release. Then when
         | they decide it's time to push the narrative, suddenly all
         | mainstream newspaper write about, say, how masks do not work vs
         | Covid, then one month later they all write at the same time how
         | masks work against Covid, lately it's been a coordinated attack
         | on Dubai (not that there aren't shady things there).
         | 
         | It's not about whether they're right or not: it's the complete
         | and total narrative control and coordination that is hard to
         | stomach.
         | 
         | You know you're being played.
        
       | tamimio wrote:
       | This has existed since the whole 'influencer' phenomenon began,
       | particularly on social media. I recall reading an article in 2014
       | about how Samsung allegedly spread slander against HTC. It's the
       | reason why I don't rely on YouTube for reviews, tutorials, or
       | anything beyond pure entertainment or documentaries. It seems
       | that everyone is compensated in one way or another. In fact,
       | monetization is the reason why social media has devolved into
       | this state.
        
       | knallfrosch wrote:
       | > Influencer cartels can improve consumer welfare if they expand
       | social media engagement to the target audience > Back-of-the-
       | envelope calculations (based on regression analysis) show that if
       | advertisers pay for cartel engagement as if it were natural
       | engagement, they receive only 3-18% of the value with general
       | cartels, and 60-85% with topic cartels.
       | 
       | First, users don't benefit from cartel engagement at all. The
       | authors have forgotten to factor in opportunity costs of 100%. A
       | "85% good" engagement that pushes a 100% engagement from my feed
       | costs me 15%. This is plainly obvious by, well, the need to form
       | a cartel in the first place.
       | 
       | Second, the authors define both good engagement and topic cartels
       | by comment similarity. You can't get any other result other than
       | that topic cartels beat general cartels.
       | 
       | Third, the column uses stuffy language. Write clearly and you
       | spot mistakes such as one and two more easily.
       | 
       | Fourth, as a regular app user I regard everything influencer-
       | shilled as negative welfare - but that's just my opinion.
        
       | autoexec wrote:
       | > If a cartel generates engagement from influencers with other
       | interests (meat lovers), this hurts consumers and advertisers. It
       | hurts consumers because the platform will show them irrelevant
       | content, and advertisers are hurt because their ads are shown to
       | the wrong audience.
       | 
       | Even when the content is relevant it still hurts consumers
       | because ads are manipulation, and supports a system of invasive
       | spying that gets used for things far outside of the scope of
       | advertising, and because it only shows consumers what influencers
       | are paid to push/shill for with zero consideration to other
       | things like the quality of those products/services, and because
       | it only encourages the "filter bubble" problem where the
       | obsession over targeting audiences causes people to be exposed to
       | an artificially narrow subset of what is available.
       | 
       | The best thing for consumers would be if people with online
       | platforms honestly and transparently promoted a highly diverse
       | range of products (including people) that they themselves
       | genuinely like and are interested in.
        
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