Final answer:
Influencer marketing relies on influential people to promote a company's products, which has become prevalent on social media. Brand ambassadors are more formally tied to companies, while influencers might be motivated by free products or platform revenue. Both strategies rely on the trust and credibility these individuals have with their audiences.
Step-by-step explanation:
The practice described in the question is known as influencer marketing, which focuses on leveraging influential individuals to advocate for a company's products or services. Social media has given rise to influencer and ambassador marketing as pivotal strategies. Brand ambassadors are typically more formal in their engagements with companies, often being featured in various campaigns and potentially receiving monetary compensation or free products. On the other hand, influencers may operate more informally, relying on platforms' revenue streams and the appeal of free products or services.
Moreover, ambassador marketing on college campuses has become a strategic approach for companies. They hire students to promote products, banking on the idea that fellow students trust endorsements from their peers. Statistics support this marketing method, showing that ambassador-referred customers offer a higher value to companies compared to others, and people are generally more trusting of referrals from someone they know.
Ultimately, both influencer and brand ambassador marketing are modern manifestations of advertising tactics that aim to capture the attention of prospective customers through trusted, influential figures, mirroring the endorsement strategies used by celebrities.