The Power of Branding: Unmasking the Power and Peril of Digital Influence
Branding Case Studies: The Good, The Bad and the Ugly of Social Media
There is an adapt saying about social media — everything is on display, yet nothing is as it seems.
Welcome to an episode of Black Mirror — an era where our modern society is dominated by online likes, shares, and viral content… where human perception of what is trendy, desirable, or even ‘what is the real truth?’ has undergone a seismic shift.
The rise of social media has indeed come a long way, transforming from simple platforms of connection into incredibly powerful tools that can shape public opinion, drive business success or failure, and even influence global politics. But just how profoundly has this digital connected revolution reshaped our decision-making process?
The Evolution of Social Proof in the Digital Age
In marketing, when people shop, they most likely will look for reviews, recommendations and feedback from others who have used a product before making their decision. This action is loosely defined as social proof — a psychological phenomenon where consumers will adapt their behaviour according to what other people are doing.
Long queue at a restaurant.
The food must be delicious right?
№1 Dentist recommended toothpaste brand.
The experts endorsed the brand, it must be great for my teeth, right?
This hairdryer has a ton of 4-star reviews.
I guessed it must be an excellent product, right?
You get the idea.
Today, social proof can be amplified to unprecedented levels by ‘Likes’, ‘Shares’, and ‘Follower Counts’ — this has dramatically altered how consumers perceive value and make decisions in the new digitally connected era. This has made online social platforms a crucial medium for any brand visibility and consumer decision-making.
Instagram’s launch in 2010 transformed word-of-mouth marketing and revolutionized how people share experiences and recommendations. By 2021, 81% of users were using the platform to research products and services. Small businesses like handmade jewellery creators and local bakeries have found success by leveraging Instagram’s visual platform to showcase their products and connect with customers directly, often growing from hobby ventures to thriving businesses.
TikTok’s short-form video creation and sharing capabilities have supercharged social proof to the next level, As of 2023, TikTok has over 1 billion active users worldwide, with 150 million in the US alone. This vast user base has led to increased brand visibility, customer engagement, and sales for many businesses, thanks to user-generated content and viral challenges. Studies show that 92% of users have taken action after watching TikTok videos, and 67% say the platform inspires them to shop even when they weren’t planning to. This has led to increased trust in brands and rapid sharing of product experiences, significantly influencing consumer behaviour.
This digital transformation of social proof has created opportunities for genuine connection and business growth, but it has also opened the door to manipulation and deception.
It is a known fact some influencers artificially inflate their follower counts and engagement rates through purchased followers or participation in engagement pods — groups that agree to like and comment on each other’s content.
The proliferation of click farms around the world also exemplifies the dark side of social proof. These operations allow individuals and businesses to purchase likes, comments, and followers, artificially inflating their perceived popularity and influence. With the right tech expertise and software, click farms do not even need an army of people, they can just create bots to automate the whole process.
The Rise of the Influencer Economy
Influencers have become the new arbiters of taste and trends, wielding godly power over consumer behaviour. When wielded responsibly, these influencers can be a powerful tool for brands to connect with audiences in meaningful ways.
Take Marques Brownlee, also known as MKBHD, a tech reviewer with over 16 million YouTube subscribers. His in-depth, honest reviews of smartphones, laptops, and other gadgets have made him one of the most trusted voices in consumer technology. When MKBHD speaks, millions listen, and his endorsements can significantly impact product sales and brand perception.
Gymshark — a fitness apparel brand that grew from a small startup to a billion-dollar company by utilizing a network of fitness influencers. The brand identified up-and-coming fitness personalities on YouTube + Instagram and started sponsoring them before they became mainstream. Leveraging this early-adopter strategy allowed Gymshark to build strong, authentic relationships with influencers and their audiences. By 2020, Gymshark had reached a valuation of over $1 billion, largely attributed to its innovative influencer marketing approach.
Perfect Diary (完美日记) is a hot Chinese cosmetics brand that leveraged a network of micro-influencers/KOLs called “Beauty Ambassadors” to rapidly grow the brand market share. They collaborated with thousands of everyday users on social platforms like Xiaohongshu (Little Red Book) and Weibo to create authentic product reviews and tutorials. This strategy helped Perfect Diary become one of the fastest-growing beauty brands in China, achieving a valuation of over $4 billion in 2020.
While influencer marketing can be highly effective, it is not without its pitfalls. The pressure to maintain a perfect online image and the allure of quick success has led to various deceptive practices.
The infamous Fyre Festival of 2017 exemplifies the dangers of unchecked influencer marketing. High-profile influencers promoted a luxury music festival that turned out to be nothing more than a scam — highlighting the need for due diligence in setting up influencer partnerships.
Influencer marketing in the crypto space, particularly with meme coins, has become a breeding ground for pump-and-dump schemes. High-profile influencers, often with limited financial expertise, promote obscure coins to their millions of followers, causing rapid price surges. These artificial spikes are frequently followed by sharp crashes as early investors and promoters sell their holdings, leaving late adopters with significant losses.
The Impact of Social Media on Information Dissemination
Social media platforms have become powerful tools for information dissemination, capable of educating and inspiring users but also potentially misleading them or reinforcing biases. For governments and political entities in the world, social media platforms have become the new battleground for hearts and minds.
In China, social media was put to good use by the Chinese government by encouraging the use of Douyin (the Chinese version of TikTok) to promote educational content, particularly in STEAM fields. This initiative has led to a surge in educational videos, showcasing students excelling in various academic pursuits and promoting a culture of learning and achievement among young users.
On the other end of the spectrum, the ongoing conflict between Israel and Palestine has spilled over onto social media platforms, especially on TikTok, with both sides using these channels to shape narratives and gain international support. This has led to the spread of misinformation, heightened emotions, and increased polarization among everyday people all over the world, demonstrating the power of social media to influence public opinion on complex geopolitical issues.
With the popularity and reach of TikTok, the current US government is pushing for greater control over TikTok — citing concerns about data collection and Chinese government ties. Many argue that the government’s attempts to force a sale or ban the app are partly motivated by a wish to exert more control over this influential medium (150 million US users). This controversy highlights the complex interplay between social media, national security, information control, and geopolitical power dynamics in the digital age.
The Power of Consumer Voices on Social Media
Social media as a collective platform has enabled consumers to come together and influence brand behaviour and public opinion. The power of the crowd’s wisdom is a double-edged sword for brands. While it can lead to rapid backlash and reputation damage, it also offers opportunities for brands to engage in meaningful dialogue with their audience and participate in positive social movements.
In 2022, luxury fashion brand Balenciaga faced severe backlash over its holiday campaign featuring children posing with teddy bears dressed in BDSM-inspired outfits. The campaign sparked insane outrage on social media, leading to a widespread boycott for the Balenciaga brand — forcing the brand to apologize and withdraw from the campaign. This incident demonstrates the swift and powerful impact of consumer voices on social media when united against perceived unethical practices.
The #MeToo movement, which gained massive traction on social media in 2017, also exemplifies how social platforms can be used to create positive change. Started by activist Tarana Burke and amplified by celebrities and everyday users alike, the movement raised awareness about sexual harassment and assault, leading to significant cultural shifts and concrete actions in various industries worldwide.
The Future of Social Media
Humans have survived without social media for millennia, in just 20+ years, the impact of social media on modern human behaviour is undeniable and far-reaching.
However, we must not underestimate the double-edged nature of this power. For every positive movement sparked on social media, there is potential for misinformation, cyberbullying, and addiction. The continuous misuse of these platforms for data harvesting, manipulation of public opinion, and the spread of extremist ideologies is a growing concern. As we move forward, we must approach these technologies with a critical and nuanced perspective, recognising both their potential and their limitations.
On a personal human level, this 24/7 connected lifestyle raises serious concerns about the long-term effects on mental health, attention spans, and interpersonal skills. The current generation, often referred to as Gen Z, shows signs of increased anxiety, reduced face-to-face social skills, and a tendency to measure self-worth through online validation.
Looking ahead, the next generation may experience even more intense digital integration, thanks to the rise of AI. We might see a world where AR and VR spaces become the primary modes of interaction, potentially further blurring the lines between online and offline life. On the basic human evolution level, this could lead the next generation to face challenges in developing empathy, critical thinking skills, and the ability to navigate the physical world.
FAQs
What is social proof?
Social proof is a psychological phenomenon where people adapt their behavior based on what others are doing. In the context of marketing and social media, it refers to the tendency of consumers to rely on the actions, reviews, and recommendations of others when making purchasing decisions. This can manifest in various forms, such as product reviews, testimonials, social media likes and shares, and influencer endorsements.
What is the Influencer Economy?
The Influencer Economy refers to the ecosystem of social media personalities, content creators, and their followers who have significant sway over consumer behaviour and brand perception. Influencers use their online platforms to promote products, services, and ideas, often in exchange for compensation. This economy has become a major force in digital marketing, with brands leveraging influencers’ reach and credibility to connect with target audiences.
How has social media changed traditional word-of-mouth marketing? Social media has amplified and digitized word-of-mouth marketing. Platforms like Instagram and TikTok have made it easier for people to share experiences and recommendations with a much larger audience. This has led to the rise of user-generated content, influencer marketing, and viral trends that can rapidly impact brand visibility and consumer decisions.
What are some risks associated with influencer marketing?
- Inauthenticity or lack of transparency in sponsored content
- Potential for fraud (e.g., fake followers or engagement)
- Reputational damage if an influencer behaves controversially
- Oversaturation of sponsored content leading to audience fatigue
- Difficulty in measuring ROI accurately
What is the impact of social media on information dissemination?
- Rapidly disseminate news and information globally
- Amplify diverse voices and perspectives
- Facilitate the spread of misinformation or biased content
- Influence public opinion on various issues, including politics
- Create echo chambers that reinforce existing beliefs
How can brands maintain authenticity on social media?
- Aligning social media content with core brand values and mission
- Sharing behind-the-scenes content and employee stories
- Engaging in genuine conversations with followers
- Being transparent about sponsored content and partnerships
- Responding to both positive and negative feedback professionally
This article is written by
Hendra Chong
Creative Director, Brand Designer
Locally Creative Lab
Hi there! My name is Hendra, head creative honcho at Locally. My humble creative service agency is dedicated to helping purpose-driven businesses stand out with great branding and design.
So whether you’re looking for brand identity design or refine your go-to-market creatives, let Locally Creative Lab help craft a brand everyone will love.
www.locallycreativelab.xyz
www.linkedin.com/in/hendra-chong-81511040/
