Shaping the Influencers: The Role of Multi-Channel Networks

53 Pages Posted: 19 Feb 2024

See all articles by Yulin Hao

Yulin Hao

University of Rochester - Simon Business School

Xiaojie Li

University of Rochester - Simon Business School

Date Written: February 7, 2024

Abstract

Social media influencers are increasingly affiliating with multi-channel networks (MCNs), also known as influencer agencies. These MCNs recruit influencers and help them monetize their content. More importantly, MCNs are rumored to be directly involved in content creation. This paper provides the first empirical examination of the effects of MCN affiliation on influencer content. To this end, we construct a unique dataset tracking influencers' changes in their MCN affiliation on TikTok in China. Using a difference-in-differences strategy, we compare influencers who switched their affiliation status with observably similar non-switchers. The findings reveal that MCN affiliation enhances content engagement and leads to more homogeneous and focused content, steering influencers towards topics with higher advertising prices. However, the content quantity does not change. When influencers affiliate with MCNs, these influencers also have more sponsorships and charge a higher advertising price, which is predominantly driven by changes in content resulting from the affiliation. These results suggest that platforms and influencers can benefit from improved engagement and sponsorships resulting from MCN affiliation. Although advertisers face higher advertising prices charged by MCN-affiliated influencers, these prices are justified by more engaging and focused content, which may also be beneficial to the advertisers.

Keywords: Multi-Channel Networks, Influencer, Content Strategy

Suggested Citation

Hao, Yulin and Li, Xiaojie, Shaping the Influencers: The Role of Multi-Channel Networks (February 7, 2024). Available at SSRN: https://ssrn.com/abstract=4720070 or http://dx.doi.org/10.2139/ssrn.4720070

Yulin Hao

University of Rochester - Simon Business School ( email )

Rochester, NY 14627
United States
5857324595 (Phone)

Xiaojie Li (Contact Author)

University of Rochester - Simon Business School ( email )

Rochester, NY 14627
United States

HOME PAGE: http://xiaojieli.info

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