Shaping the Influencers: The Role of Multi-Channel Networks

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