Paper Number
ICIS2025-1371
Paper Type
Complete
Abstract
Consumers often follow multiple influencers and may receive repeated exposure to the same product. When a firm switches influencers, overlapping followers can both cannibalize returns and open additional selling opportunities. We build a parsimonious analytical model that isolates the incremental profit implications attributable to a new influencer as a function of follower overlap and demand heterogeneity. We derive non-linear predictions and test them using live-streaming e-commerce data from Douyin. Using NLP to infer follower overlap and influencer-specific product demand, we find that greater overlap typically lowers profits, but can raise profits when overlapping followers have disproportionately high demand or when prior advertising intensity was modest. In such cases, re-engaging through a second influencer generates significant incremental profit. Heterogeneity analyses show that effects vary by product category. Our results inform influencer selection and sequencing, showing when switching toward an influencer with shared followers increases firm profit.
Recommended Citation
Hu, Jingyun and Wu, Anqi, "Fostering or Hindering Sales? Overlapping Influencer Followers in Live Streaming E-Commerce" (2025). ICIS 2025 Proceedings. 2.
https://aisel.aisnet.org/icis2025/da_bus/da_bus/2
Fostering or Hindering Sales? Overlapping Influencer Followers in Live Streaming E-Commerce
Consumers often follow multiple influencers and may receive repeated exposure to the same product. When a firm switches influencers, overlapping followers can both cannibalize returns and open additional selling opportunities. We build a parsimonious analytical model that isolates the incremental profit implications attributable to a new influencer as a function of follower overlap and demand heterogeneity. We derive non-linear predictions and test them using live-streaming e-commerce data from Douyin. Using NLP to infer follower overlap and influencer-specific product demand, we find that greater overlap typically lowers profits, but can raise profits when overlapping followers have disproportionately high demand or when prior advertising intensity was modest. In such cases, re-engaging through a second influencer generates significant incremental profit. Heterogeneity analyses show that effects vary by product category. Our results inform influencer selection and sequencing, showing when switching toward an influencer with shared followers increases firm profit.
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07-DataAnalytics