HYPEAUDITOR REVEALS KEY FINDINGS OF FRAUD’S IMPACT ON THE U.S. INFLUENCER MARKET

Nick Baklanov

Marketing specialist at HypeAuditor. Connect on Linkedin.

HYPEAUDITOR, THE AI-POWERED INFLUENCER MARKETING PLATFORM,

REVEALS KEY FINDINGS OF FRAUD’S IMPACT ON THE U.S. INFLUENCER MARKET

New Research Shows Only 59% of Instagram Followers in the U.S. are Real People, 

With the Other 41% Consisting of Bots, Inactive Accounts, and Mass Followers — 

— On Average, 33.89% of Influencers in the U.S. Are Impacted by Fraud —

May 25, 2021 (INDIANAPOLIS) HypeAuditor, the AI analytics platform for brands seeking fair, transparent, and effective influencer marketing, today released its first “Fraud Report,” revealing only 59% of Instagram followers in the U.S. are real people, with the other 41% consisting of bots, inactive accounts, and mass followers (accounts with over 1,500 followings). After the release of its second annual “State of Influencer Marketing 2021” report revealing 2020’s most influential social media leaders, as well as industry-pioneering best practices, HypeAuditor further analyzed the most common types of influencer fraud and the most impacted influencer demographics during the same timeframe.

“Our latest findings reinforce the importance of understanding that not all influencers who are impacted by fraud do it on purpose or are even aware that it’s happening,” said Alex Frolov, CEO and Co-Founder of HypeAuditor. “Uniquely, we use a specially trained model based on machine learning algorithms that analyzes over 53 patterns, which detects 95% of all known fraud activity, including fake influencers and engagement, which could cost advertisers millions of dollars each year.”

Additional findings include:

  • On average, 33.89% of influencers in the U.S. are impacted by fraud (growth anomalies or have inauthentic comments: comments from bots, giveaway comments, comments from Pods). 
  • Inauthentic comments drive the most fraudulent activities across all sectors analyzed.
  • Fake influencers and engagement could be costing advertisers up to $800 million each year.
  • Influencers with between 100,000 and 1 million followers participate the most in giveaways.
  • Overall, one-fourth of influencers in the U.S. have more than 30% inauthentic comments.
  • Mega-influencers (over 1 million followers) experience the highest comment authenticity (58.61% of Mega-influencers have inauthentic comments).
  • Mega-influencers often become victims of spam accounts. 
  • Gen Z influencers are impacted the most by fraud (41.05%), with females slightly more impacted than males (39.52% vs. 32.60%), followed by Gen Y (36.32%), Gen X (24.74%), and Baby Boomers (21.24%).
  • Gen X and Baby Boomer influencers are impacted by close to 50% less than Gen Z is. 
  • Top three industries most impacted by fraud in the U.S.: fashion, modeling, and lifestyle.
  • Top three industries least impacted by fraud: artists, comics & sketches, and water sports.

HypeAuditor’s “State of Influencer Marketing 2020” report, from which the recent “Fraud Report” was sourced, analyzed over 12 million Instagram accounts, 4.5 million YouTube channels, and 5.2 million TikTok accounts. Additionally, the research team used data from various sources, including market research agencies, the internet, social media companies, news media, crowdsourcing, and the company’s proprietary internal analysis. Subsequently, they processed the data by anonymizing, sorting and structuring, cleaning and removing any irregularities, and enriching the data. Finally, they transformed the data into intelligent estimations by using estimation and machine learning algorithms developed by their team of data scientists and influencer marketing experts.

HypeAuditor provides a comprehensive set of tools for brands to discover and analyze influencers on Instagram, TikTok, and YouTube, verify their authenticity, and track the results of influencer marketing campaigns. In March 2021, it expanded its capabilities with a unique influencer industry tool that enables in-depth market research and competitor analysis, all of which are based on machine learning (ML). HypeAuditor’s mission is to provide the ultimate analytical services to ensure that brands and agencies work effectively with creators.

About HypeAuditor:

Founded in 2018, HypeAuditor is a leader in AI-powered analytics for transparent and fraud-free influencer marketing. Its platform includes Instagram, TikTok, and YouTube analytics, as well as a suite of discovery tools and reporting features that integrate an advanced AI-based, fraud-detection system that safeguards authenticity in influencer marketing. HypeAuditor applies artificial intelligence and machine learning to determine behavioral patterns, identifying fake followers, and ascertaining engagement on influencer accounts and sponsored posts. The HypeAuditor platform has more than 500,000 users, and key customers include Dior, GroupM, Influence4You, L’Oréal, Ogilvy, TAKUMI, Traackr, and Unilever. To learn more, visit HypeAuditor.com.

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PR CONTACT:

Janine Savarese

Savarese Communications

(732) 359-3384

jsavlowe@savcopr.com




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