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As billions of people continue using social media, moguls and influencers like MrBeast are becoming more than just entertainers. They’re reshaping how we, the people, consume products, invest their money, and more. Since these individuals have millions of followers, their impact in different sectors, including finance, is significant, and we can’t ignore it.
Today, we will explore how social media moguls are shaping financial trends while placing special focus on MrBeast. With hundreds of millions of followers across different social media platforms, MrBeast is the best example of an influencer who can start a financial trend and push it to unimaginable levels.
In This Guide
Who is MrBeast?
Born May 7th, 1998, MrBeast is an infamous YouTuber, business mogul, philanthropist, and avid vlogger. His real name is James Stephen Donaldson, and he was raised in Greenville, North California. In his earlier days, MrBeast published sub-standard videos on topics like estimating the wealth of YouTubers, which you might have missed since they weren’t popular.
MrBeast went viral in 2017 and became an internet celebrity when his “Counting to 100,000” YouTube video garnered tens of thousands of views in a couple of days. If you check him out today, you’ll realise that since then, his YouTube channel has gained over 340 million subscribers, and over 97 million people follow him on Twitter.
The days when MrBeast’s favourite pastime is counting to 100,000 on YouTube are long gone. Nowadays, he engages in crazy stunts and challenges, like spending 50 hours buried alive, playing battleships with a bunch of real-life ships, and giving away millions of dollars to strangers.
Influence of Social Media Moguls on Consumer Behavior
We checked out the 2024 Influencer Marketing Report and discovered something interesting. Apparently, influencer posts influence the daily, weekly, and monthly purchasing decisions of approximately 49% of consumers. Today, social media moguls like MrBeast wield enormous power when it comes to shaping consumer behaviour and decisions. Let’s briefly explore why this is so.
The Psychology of Influence
Successful social media moguls like MrBeast are familiar with key psychological principles that often shape consumer behaviour. And they leverage these principles to the fullest extent. Let’s explore a few noteworthy examples:
- Social proof: You must have seen social media moguls and influencers endorsing some brands and products. The followers of these individuals often interpret their endorsement as validation, making them more willing to try out the associated brands and products. Many social media moguls also use testimonials from celebrities to amplify social proof.
- Reciprocity: People often feel indebted after receiving gifts and favours. Social media moguls know this, which is why they frequently offer their followers free content, exclusive discounts, and freebies. In return, their followers feel like they owe them something and show their appreciation by purchasing and engaging with the brands they endorse.
- Emotion over logic: Savvy social media moguls know that emotional appeals often work wonders on their audiences compared to purely logical discourses. As such, they use different tactics to elicit the right emotions in their audiences and influence their purchasing behaviours, from sharing personal flaws and struggles to leverage urgency and the fear of missing out.
Trust and Authority
The biggest social media moguls have built trust over the years in numerous ways, including authentic interactions with their audiences. When it’s time to endorse certain brands, they tap into their trustworthiness. A trusted individual like MrBeast can easily provide social assurance to their followers, alleviate pertinent concerns, and encourage positive purchasing decisions.
What’s more, most social media moguls are perceived by their audiences as experts in certain niches. If a mogul like MrBeast offers advice or product recommendations, their followers are more likely to believe them, courtesy of their status in their respective domains.
Trend-Setting
Humans have the inherent desire to be part of the “in-crowd” and fear missing out. Informed social media moguls know that and leverage it whenever they can. For starters, they start a new trend, such as using a new product, and their followers follow suit in a bid to be a part of the “in-crowd” and avoid missing out.
Once a social media mogul starts something new, it snowballs into a major trend. Their efforts are exemplified by the bandwagon effect, which encourages people to behave in a way that aligns with the majority of the population.
Influencer-Led Investment Trends
In the digital age, social media influencers, especially those with a good command of the finance sector, are shaping most of their followers’ investment decisions. These individuals provide tips and insights on everything from stocks and crypto to personal saving and spending strategies. They also break down complex concepts into bite-sized information that their audiences understand.
If an influencer like MrBeast discusses a specific investment today, their followers will likely believe and follow what they say, courtesy of their status and the infamous social proof effect. The success of such individuals is magnified by their ability to position themselves as relatable guides as opposed to distant financial experts.
The herd mentality is another aspect that often makes it easier for influencers to drive investment trends. Suppose MrBeast recommends a particular investment, and millions of his followers adopt it. In that case, individuals who don’t even follow this mogul are more likely to take his recommendation to heart since most humans are programmed to mimic the actions of a larger group.
The Risks and Rewards of Influencer-Led Financial Trends
In the past, financial knowledge was the domain of a select few gurus. Average Joes had to seek guidance and advice from these individuals. But those days are behind us. Thanks to social media moguls and influencers, average people are now familiar with even the most complex financial concepts.
Moreover, influencers have played a significant role in encouraging the younger generations to invest. This is indispensable in an era where approximately a third of young adults are financially precarious for various reasons, including poor financial literacy. As more younger people invest, retail investing grows rapidly, and investors enjoy greater market liquidity.
However, influencer-led financial trends also have some risks and drawbacks. For starters, a good number of influencers lack formal financial education and expertise. This negatively impacts their ability to offer sound advice or content with the same depth as guidance provided by industry experts.
Also, some influencers recommend shoddy investment products, services, and platforms simply because they are paid to do so. Unfortunately, their audiences suffer in the long run and lose their hard-earned money.
Conclusion
MrBeast and other social media moguls are reshaping the financial landscape with their content, advice, and recommended strategies. Their input is empowering a new generation of entrepreneurs and providing average people with the information they need to make sound financial decisions. Not to forget, such individuals are helping countless brands grow and thrive.
But beware: As a social media user, you should conduct independent research before following influencer endorsements and recommendations. Remember, some of these people get paid to promote certain brands and products. Always do your homework before risking money.