Influence Marketing on Social Media: The Reputation Change After a Corporate or Referral Brand Crisis

Digital influencers, besides being a personal branding phenomenon, constitute, nowadays, important partners for brands in the digital environment. Despite the benefits for both parties, the brand and the endorser, there is a risk when the individuals or the brand take part in some scandal or questionable activity, which causes a loss of credibility and reputation. The contagious effect of personal or corporate brand crisis with the partners is well reported in the literature. However, there are no studies about such occurrence in the digital environment, considering that the phenomenon of digital influence has some particularities differing from traditional celebrity endorsement. This chapter focuses on the research of the consequences of a change in the credibility of influencers or brands, after the occurrence of a negative situation, and the way in which this change affects the two parties involved, the brand and the influencer. We conducted a netnographic study of the social media pages of three digital influencers and the social media pages of a recognized fast fashion brand recognized in the digital world. We analyzed 1500 social media comments from their audiences and found that influencers suffer from a loss in sympathy and credibility by scandals while crisis communication strategies in corporate brands can prevent such damages. Strategic implications for brand managers and digital influencers managing their endorsements are addressed in the discussion.