Influencer Marketing Set to Hit $480 Billion by 2027, but Experts Warn of Harmful Practices

It wasn’t long ago that social media influencers didn’t even exist. Today, they’re not only household names—they’re a billion-dollar industry.

With more than 60% of consumers trusting influencer recommendations, companies are doubling down. Industry experts project businesses will spend approximately $480 billion globally on influencer marketing by the year 2027.

But with that rapid growth comes a warning: researchers say it may be time to regulate the space.

A recent study published in the journal Psychology and Marketing argues that many influencers engage in practices that may negatively affect their followers’ mental health, purchasing habits, and self-image. From promoting unverified health products to glorifying unrealistic lifestyles, the concern is growing over how much sway influencers truly have—and how little oversight exists.

As younger audiences increasingly turn to online personalities for guidance, some researchers are calling on lawmakers to step in and set clear guidelines for what influencers can and cannot promote.

While the industry shows no signs of slowing down, the question now is whether government agencies will take action—or continue to let social media trends shape consumer behavior unchecked.

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