In Tech

The rise of influence economy

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Last year, three billion people logged on to social media networks like Facebook, WhatsApp and China’s Sina Weibo. The world’s collective yearning for connection has not only reshaped the Fortune 500 and upended the advertising industry but also created a new status marker: the number of people who follow, like or “friend” you.

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For some entertainers and entrepreneurs, this virtual status is a real-world currency. Follower counts on social networks help determine who will hire them, how much they are paid for bookings or endorsements, even how potential customers evaluate their businesses or products.

High follower counts are also critical for so-called influencers, a budding market of amateur tastemakers and YouTube stars where advertisers now lavish billions of dollars a year on sponsorship deals. The more people influencers reach, the more money they make. According to data collected by Captiv8, a company that connects influencers to brands, an influencer with 100,000 followers might earn an average of $2,000 for a promotional tweet, while an influencer with a million followers might earn $20,000.

Genuine fame often translates into genuine social media influence, as fans follow and like their favorite movie stars, celebrity chefs and models. But shortcuts are also available: On sites like Social Envy and DIYLikes.com, it takes little more than a credit-card number to buy a huge following on almost any social media platform. Most of these sites offer what they describe as “active” or “organic” followers, never quite stating whether real people are behind them. Once purchased, the followers can be a powerful tool.

All these accounts belong to customers of an obscure American company named Devumi that has collected millions of dollars in a shadowy global marketplace for social media fraud. Devumi sells Twitter followers and retweets to celebrities, businesses and anyone who wants to appear more popular or exert influence online. Drawing on an estimated stock of at least 3.5 million automated accounts, each sold many times over, the company has provided customers with more than 200 million Twitter followers, a New York Times investigation found.

Among the thousands of followers, there is no way to know whether there are real people behind them. Some of the accounts that most resemble real people, but they might reveal a kind of large-scale social identity theft. At least 55,000 of the accounts use the names, profile pictures, hometowns and other personal details of real Twitter users, including minors, according to a Times data analysis.

These accounts are counterfeit coins in the booming economy of online influence, reaching into virtually any industry where a mass audience — or the illusion of it — can be monetized. Fake accounts, deployed by governments, criminals and entrepreneurs, now infest social media networks. By some calculations, as many as 48 million of Twitter’s reported active users — nearly 15 percent — are automated accounts designed to simulate real people, though the company claims that number is far lower.

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In November 2017, Facebook disclosed to investors that it had at least twice as many fake users as it previously estimated, indicating that up to 60 million automated accounts may roam the world’s largest social media platform. These fake accounts, known as bots, can help sway advertising audiences and reshape political debates. They can defraud businesses and ruin reputations. Yet their creation and sale fall into a legal gray zone.

“The continued viability of fraudulent accounts and interactions on social media platforms — and the professionalization of these fraudulent services — is an indication that there’s still much work to do,” said Senator Mark Warner, the Virginia Democrat and ranking member of the Senate Intelligence Committee, which has been investigating the spread of fake accounts on Facebook, Twitter and other platforms.

Despite rising criticism of social media companies and growing scrutiny by elected officials, the trade in fake followers has remained largely opaque. While Twitter and other platforms prohibit buying followers, Devumi and dozens of other sites openly sell them. And social media companies, whose market value is closely tied to the number of people using their services, make their own rules about detecting and eliminating fake accounts.

Devumi’s founder, German Calas, denied that his company sold fake followers and said he knew nothing about social identities stolen from real users. “The allegations are false, and we do not have knowledge of any such activity,” Mr. Calas said in an email exchange in November.

The Times reviewed business and court records showing that Devumi has more than 200,000 customers, including reality television stars, professional athletes, comedians, TED speakers, pastors and models. In most cases, the records show, they purchased their own followers. In others, their employees, agents, public relations companies, family members or friends did the buying. For just pennies each — sometimes even less — Devumi offers Twitter followers, views on YouTube, plays on SoundCloud, the music-hosting site, and endorsements on LinkedIn, the professional-networking site.

The actor John Leguizamo has Devumi followers. So do Michael Dell, the computer billionaire, and Ray Lewis, the football commentator and former Ravens linebacker. Kathy Ireland, the onetime swimsuit model who today presides over a half-billion-dollar licensing empire, has hundreds of thousands of fake Devumi followers, as does Akbar Gbajabiamila, the host of the show “American Ninja Warrior.” Even a Twitter board member, Martha Lane Fox, has some.

At a time when Facebook, Twitter and Google are grappling with an epidemic of political manipulation and fake news, Devumi’s fake followers also serve as phantom foot soldiers in political battles online. Devumi’s customers include both avid supporters and fervent critics of President Trump, and both liberal cable pundits and a reporter at the alt-right bastion Breitbart. Randy Bryce, an ironworker seeking to unseat Representative Paul Ryan of Wisconsin, purchased Devumi followers in 2015, when he was a blogger and labor activist. Louise Linton, the wife of the Treasury secretary, Steven Mnuchin, bought followers when she was trying to gain traction as an actress.

Devumi’s products serve politicians and governments overseas, too. An editor at China’s state-run news agency, Xinhua, paid Devumi for hundreds of thousands of followers and retweets on Twitter, which the country’s government has banned but sees as a forum for issuing propaganda abroad. An adviser to Ecuador’s president, Lenín Moreno, bought tens of thousands of followers and retweets for Mr. Moreno’s campaign accounts during last year’s elections.

Kristin Binns, a Twitter spokeswoman, said the company did not typically suspend users suspected of buying bots, in part because it is difficult for the business to know who is responsible for any given purchase. Twitter would not say whether a sample of fake accounts provided by The Times — each based on a real user — violated the company’s policies against impersonation.

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“We continue to fight hard to tackle any malicious automation on our platform as well as false or spam accounts,” Ms. Binns said.

Unlike some social media companies, Twitter does not require accounts to be associated with a real person. It also permits more automated access to its platform than other companies, making it easier to set up and control large numbers of accounts.

(Source: New York Times)

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