“Whom to Trust?”: To Investigate the Efficacy of Influencer Marketing and Social Media Sponsored Advertisements

This study examines the relative effectiveness of Social Media Sponsored Advertising (SMA) and Influencer Marketing (IM) in shaping consumer purchase decisions. With the rise of social media, brands have increasingly utilized SMA and IM to drive engagement, brand awareness, and sales. While SMA offers broad reach and targeted messaging, IM leverages influencers’ credibility and personal connections to engage niche audiences. Using a mixed-method approach, including eye-tracking experiments and semi-structured interviews, the study compares SMA and IM’s impact on consumer behavior, focusing on Instagram within the Indian beauty market. Findings reveal that while SMA garners higher immediate engagement metrics (likes, views, comments), IM fosters deeper consumer trust through relatable content and social proof. However, challenges such as ad fatigue, skepticism, and privacy concerns can affect the efficacy of both strategies. The research underscores the importance of authenticity, aesthetic appeal, and transparency in advertising. Brands are advised to adopt a balanced approach, leveraging the strengths of both SMA and IM to enhance brand loyalty and drive sales. Future research should explore diverse demographics, platforms, and industries to expand the understanding of social media marketing’s impact.