Brands warned over 'dark side' of influencer marketing

Social media influencers might be at the top of many brands’ campaign plans but if left unchecked they pose psychological, health and security risks and need tighter regulation.

That is the stark conclusion of a new study by the University of Portsmouth, which while recognising how influencers have revolutionised marketing, shaping consumer behaviour, brand strategies, and even societal norms, exposes a lesser-known “dark side” side of the culture.

With influencer marketing projected to reach an estimated $480bn by 2027, companies increasingly rely on influencers to promote products and foster consumer trust, but they can also lead to misinformation, endorsement of dangerous products, unrealistic beauty standards, the fostering of a comparison culture, deceptive consumption, and privacy risks.

A 2024 Digital Marketing Institute survey found that 60% of consumers trust influencer recommendations, with nearly half of all purchasing decisions being influenced by these endorsements. However, as influencer culture grows, so do concerns about its unintended consequences.

The paper, published in Psychology and Marketing, warns that the power of influencers is creating a worrying consumer landscape. Unlike traditional celebrities, whose fame is typically rooted in institutional settings – such as acting, music, or sports – influencers gain recognition through social media platforms, often relying on personal branding and consistent engagement with their audiences.

University of Portsmouth professor of marketing and sales Yuksel Ekinci said: “Many influencers act as opinion leaders or experts within their respective areas, frequently reviewing products and leveraging their authority, expertise, or relationships with followers to influence purchasing decisions.

“Some inspire and entertain; others deceive and upset. The deception and damage, and their impact on consumption, need to be carefully regulated.”

This study organises the negative aspects of influencer marketing into six key themes:

Promotion of harmful products. Influencers often endorse unhealthy or dangerous products such as diet pills, detox teas, and alcohol without full disclosure, influencing consumption habits, particularly among younger audiences.

Dissemination of misinformation. Many influencers, despite lacking expertise, spread false information about health, politics, and social issues, leading to widespread disinformation.

Reinforcement of unrealistic beauty standards. By presenting filtered and curated images, influencers contribute to body dissatisfaction, low self-esteem, and harmful beauty practices.

Fostering of comparison culture. Influencer-driven content fuels lifestyle envy and social anxiety, leading to negative self-comparison and diminished well-being.

Deceptive consumption practices. Some influencers engage in unethical behaviours, such as undisclosed sponsorships, promotion of counterfeit goods, and misleading advertisements, undermining consumer trust.

Privacy concerns. The extensive data collection and sharing by influencers raise significant security and regulatory issues, posing risks for both influencers and followers.

The study calls for more stringent oversight, increased transparency, and ethical marketing strategies to mitigate these risks, highlighting a number of strategies for policymakers and marketers alike:

Transparency and ethical compliance: Brands must enforce clear disclosure policies to ensure responsible influencer partnerships.

Regulation and consumer protection: Governments should strengthen policies on influencer marketing to prevent deceptive practices and misinformation.

Mental health awareness: Companies and influencers must prioritise authentic content that promotes well-being rather than unattainable ideals.

Data privacy protections: Stronger safeguards and awareness campaigns are needed to protect users from privacy breaches and data exploitation.

Dr Georgia Buckle, Research Fellow in the School of Accounting, Economics and Finance at the University of Portsmouth, said, “Social media influencers hold immense power over consumer decisions and cultural norms.

“While they provide entertainment, inspiration, and brand engagement, the unchecked influence of some can lead to serious ethical and psychological consequences. Our study highlights the urgency for both academic and industry stakeholders to address these challenges proactively.”

The University of Portsmouth study follows an analysis published last June which showed nearly 9 in 10 TikTok posts offering financial guidance could not only be misleading but could also damage future finances.

The research, from pension advisors Almond Financial, found that creators producing advice-led content on TikTok rarely encouraged viewers to do their own financial research and some gave advice under the guise of selling online courses, e-books, or memberships to exclusive investment advice.

It was claimed that some of the advice given by influencers could even lead to long-lasting financial damage, especially for people opting out of a workplace pension scheme, or adhering to tax advice not fit for their individual circumstances.