Can You Tolerate Influencer Marketing? An Empirical Investigation of Live Streaming Viewership Reduction related to Influencer Marketing

Abstract

Live streaming viewership has grown rapidly in recent years, driven by its unique features of bidirectional, real-time interaction and personalized content. These qualities have positioned live streaming as a major venue for influencer marketing, where brands collaborate with influencers to promote products to engaged viewers. However, this study suggests that influencer marketing within live streaming may lead to a decline in viewership as viewers experience resistance toward sponsored content. Building on the persuasion knowledge model, we analyze this phenomenon using streaming data from Twitch.tv and apply propensity score matching (PSM) to assess viewership trends. Our findings reveal a significant decline in viewership associated with influencer marketing. We also identify strategies that streamers can employ to mitigate this negative impact. First, moderate levels of real-time interaction between streamers and viewers help alleviate viewership reduction. Second, streamers who diversify their content topics experience less viewership declines. Lastly, minimizing negative content reduces the adverse effect on viewership. These findings contribute to the literature on influencer marketing and live streaming, offering practical insights for firms and streamers aiming to enhance audience engagement.