Risk and Reward of Influencer Marketing - GRM Institute

Risk and Reward of Influencer Marketing

This research study on “Risk and reward of Influencer Marketing” is by Divya Khetarpal and Poonam Bairy, who are currently pursuing their career in risk management at GRMI. Prior to joining this risk management course, Divya graduated with a B.Com degree and Poonam with a BMS degree. They both were looking for professional courses after graduation and they ended up joining GRMI to build their career in risk management in India.

Here’s a research study by both of them:

Risk and Reward of Influencer Marketing


By Divya Khetarpal and Poonam Bairy, PGDRM Jan’22-23

Guided by alumni Akul Bhatia, PGDRM July’21-22


“Influencer marketing is a type of marketing that focuses on using key leaders to drive a brand’s message to the larger market. It takes the idea of celebrity and influencers endorsement and places it into a modern-day content-driven marketing campaign.”

An Influencer is a person who has built a loyal audience through social media, blogs, or other communities, and therefore has the ability to influence their audience through content creation. They have the ability to influence purchasing decisions and are considered thought leaders within a specific niche or industry.

Brands using Influencer Marketing


and the list goes on…………….


History/Rise of Influencer Marketing


  1. Increase brand awareness
  2. Build Credibility & Trust
  3. Enrich Content Strategy
  4. Win-Win Partnerships
  5. Boost SEO & ROI
  6. Drive Purchases Decisions
  7. Cost-Effective & Saves Time
  8. Unlimited sharing Potential
  9. Suitable for any Business
  10. Increase Sales



  1. Inauthentic Partnership and Content
  2. Fake Followers
    Engagement Pods
    Bots Likes
  3. Ethical Conflict
  4. Data Breach
  5. FTC Compliance
  6. Audience not on social media
    Audience reach
  7. Tragedy, Death, or unexpected circumstances can derail a campaign-even with the most reliable influencers
  8. Negative Association




For example, Food and Drug Administration (FDA)regulates advertising, and it has recently brought several high-profile cases against influencers endorsing vaping products.






Image Source: Influencer Marketing Hub


Influencer Marketing Related Services / Companies Continue to Grow

Image Source: Influencer Marketing Hub


Software Platforms Specifically Focused on the Influencer Marketing Industry Raised More Than $800M in 2021

Image Source: Influencer Marketing Hub

Image Source: Influencer Marketing Hub


Lifestyle and Beauty Top Instagram Influencer Niches

Image Source: Influencer Marketing Hub


Get the complete research here: Case study on Risks and Reward of Influencer Marketing



This report has been produced by students of Global Risk Management Institute for their own research, classroom discussions and general information purposes only. While care has been taken in gathering the data and preparing the report, the student’s or GRMI does not make any representations or warranties as to its accuracy or completeness and expressly excludes to the maximum extent permitted by law all those that might otherwise be implied. References to the information collected have been given where necessary.

GRMI or its students accepts no responsibility or liability for any loss or damage of any nature occasioned to any person as a result of acting or refraining from acting as a result of, or in reliance on, any statement, fact, figure or expression of opinion or belief contained in this report. This report does not constitute advice of any kind.


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