Here's what you should learn from social media influencers for your own business marketing. Photo via Getty Images

Influencer marketing is booming, with companies allocating 10 to 25 percent of their advertising budgets to influencer-led strategies. Between 2016 and 2020, the number of sponsored posts rose from 1.26 million to 6.12 million, and overall spending in the past few years has grown by billions.

When partnering with online ambassadors, brands certainly want a large influencer audience. However, audience size does not necessarily reflect the amount influencers are paid. Influencers with similar-sized audiences can be paid very different amounts.

That’s partly because brands also want an engaged influencer audience. An influencer may have many followers, but if those followers don’t actively interact with content, the influencer’s reach is limited. Engagement metrics like comments, shares and “likes” are often a more reliable indicator of impact than follower count alone.

The problem brands face — no matter who the influencer is — is that sponsored posts typically see a plunge in engagement, making it difficult to measure their success. Very little research examines this effect and how influencers can mitigate it.

In a new study, Rice Business professors Jae Chung and Ajay Kalra take up this issue, along with Stanford professor Yu Ding. According to the researchers, one way of boosting engagement overall, even on sponsored content where engagement often falls, is for influencers to increase audience perceptions of authenticity, perceived similarity, and interpersonal curiosity.

Even in a world full of filters and careful staging, authenticity is a key differentiator for leaders, businesses and personalities. One powerful way of appearing true to one’s own personality or character is to effectively share life stories. But social media influencers walk a fine line between presenting their authentic selves and monetizing their platforms.

To attract followers and content sponsors, influencers must curate the images they share, the words they say, and the timing and cadence of their posts. It’s a delicate dance between providing value through a genuine audience connection and aligning with brand interests.

Here are three simple but powerful ways that influencers can boost engagement by highlighting close relationships:

  • Post photos that include one or two close friends or family members.
  • Mention friends and family in the caption.
  • Use first-person language (e.g., “I,” “my” and “we”).

Referencing close social ties is an especially powerful way to boost engagement. According to Professor Chung, “Intimate social ties can make influencers seem more authentic and sponsored messaging seem less transactional.” This effect holds true even when controlling for variables like gender, frequency of posting, use of emojis and hashtags, and audience familiarity with the influencer.

The team analyzed over 55,000 Instagram posts from 763 top influencers during the second half of 2019. One of their most distinctive findings is that, in terms of boosting audience engagement, the ideal number of faces in a photo is three — the influencer plus two friends or family members. For an Instagram audience, this numerical face count proves a surprisingly effective metric for assessing the closeness of relationships.

Influencers can also seem more genuine to followers by referencing intimate social ties in their captions. Terms like “grandpa,” “bestie” and “soulmate” give followers access to an inner circle usually reserved for loved ones, making them feel more connected and invested in the influencer’s world and worldview.

In one experiment, study participants were shown a series of Instagram posts supposedly written by actor Jessica Alba. Testing the impact of language on the perception of close ties, the researchers wrote three different captions for the same image. One caption mentions Alba’s daughter (“Styling by my daughter. Isn’t this outfit cute?”). Another references a distant tie (“Styling by designer Kelmen. Isn’t this outfit cute?”). A third post provided a baseline by indicating no ties at all.

Study participants were asked to select which posts they liked most. The results supported the research hypothesis. Posts mentioning close relationships are significantly more likable than posts mentioning distant ties or no ties.

The team also examined the impact of expressing emotion on Instagram. Does sharing feelings — either positive or negative — help or hurt audience engagement? Using the Linguistic Inquiry and Word Count (LIWC) language processing program, the researchers categorized and analyzed the strength and valence of emotion-related words and emojis (e.g., “love,” “nice,” “frustrated,” “sad”).

What they found is surprising. Expressing emotion boosts audience engagement, perhaps because it bridges a perceived gap of celebrity between influencer and audience. But what’s interesting is that negative emotions are more powerful than positive ones. According to the researchers’ dataset, negative emotions are expressed only 9.08 percent of the time, while positive feelings are shared 36.03 percent of the time. So, one way of interpreting the finding is that the comparative rarity of negative feeling could take some readers by surprise, and thereby incite a stronger sense of authenticity.

Importantly, all of these findings regarding audience engagement most likely apply to platforms where a gray line exists between private and public life.

And, on this note, the researchers warn against the potential for oversharing and exploiting family and friends for the sake of monetizing content.

But the study shows how brands can strategically sponsor posts that incorporate close ties in photos, express emotion, or share anecdotes in first-person language.

By quantifying tactics to achieve a greater perception of authenticity, the research provides valuable guidance on how to cut through the noise on social media. One of the paths to a more engaged audience, it turns out, runs through an influencer’s inner circle.

------

This article originally ran on Rice Business Wisdom and was based on research from Jaeyeon (Jae) Chung, an assistant professor of marketing at Rice Business, Yu Ding an assistant professor of marketing at Stanford Graduate School of Business, and Ajay Kalra, the Herbert S. Autrey Professor of Marketing at Rice Business.

Investors gravitate toward funds ending in the number zero over those ending in the number five, a Rice University researcher finds. Because of this tendency, some investors expose themselves to financial risk and loss of wealth. Photo via Getty Images

Rice University research finds that investors might have a bias towards the number zero

houston voices

When the Dow Jones Industrial Average hit 18,000 a few years back, the nicely rounded number dominated the news. When teens take the SAT, those who just miss scoring a round number are more likely to seek a do-over. And, research shows, major league baseball players are four times more likely to end their seasons with a .300 batting average than a .299.

There's something irresistible about figures ending in zero. But does that extend to our decision-making? Does our instinctive love for round numbers affect our financial plans?

The answer is yes, says Rice Business professor Ajay Kalra. Along with Xiao Liu of NYU Stern and Wei Zhang of Iowa State University, Kalra looked at data from thousands of investors in Target Retirement Funds (TRFs), which generally assume retirement at age 65 and ask employees to pick a fund with a year ending either in zero or five (e.g., 2040, 2045) that is nearest to their planned retirement date.

Investors whose birth year doesn't already end in zero or five must round up or round down to choose their TRF.

The zeros clearly win investors' hearts. Succumbing to what the researchers call "zero bias," investors consistently choose to sink their retirement dollars into funds that end in zero, not five. For many of the investors Kalra and his team looked at, especially older people, men and those with higher incomes, this meant choosing a retirement age of 60 or 70 rather than the standard 65.

The choice was often costly. Many investors who rounded up or down to find a fund year ending in zero exposed themselves to real financial risk.

That's because TRFs are graded portfolios — meaning they start out stock-heavy, move to a mix of stocks and bonds and finally emphasize bonds. Investors who rounded down for a too-young retirement target gave themselves less time to benefit from a stock-dominant portfolio. Investors who rounded up for a too-old retirement target ending in zero contributed less money to their retirement because they assumed they had more time to invest. Investors who rounded down did worse than those who rounded up.

Who is most susceptible to losing hard-earned retirement dollars this way? The researchers looked at people born from the 1950s through the 1980s. Of these investors, those born in years ending between three and seven selected the appropriate fund. The zero bias was prevalent in those born in years ending in eight or nine, who tended to project their retirement age as 60, and those born in years that ended in zero, one or two, who favored retiring at 70.

Overall, the researchers discovered, 34 percent of people born in years ending in eight or nine picked retirement funds that targeted too-early retirement — and ended up financially worse off. Meanwhile, 29 percent of investors born in years ending in the numbers zero, one or two picked later TRFs. With the exception of those who were risk averse, these investors ended up better off than those who chose too-early TRFs. Overall, however, investors who picked funds with mismatched retirement dates (that is, inconsistent with retirement at 65), saw more losses than gains.

The infatuation with zero held up even when the researchers replicated their study in an experimental setting. So they tried something different: they presented participants with math problems to coax a "calculative mindset." It worked. Rather than gravitating to zeros, these investors chose retirement funds that matched their ages. Straight talk in the form of a 30-minute one-on-one financial planning session helped too. At least some investors who got this counseling made better choices.

Rounding up or down to zero can be a nice mental shortcut when stakes are low and time is short. There are good reasons, for example, to go for the zero in calculating sales tax when you're buying a book, or tallying how many party guests want cake.

But when it comes to life savings, instinct-based math can be trouble. Financial firms should be aware of this and discourage preference for the shiny number zero. Advisors should nudge clients toward funds that will truly enhance earnings. Most important, however, investors themselves need to keep their heads, think of the future and resist the allure of round numbers.

------

This story originally ran on Rice Business Wisdom. It's based on research by Ajay Kalra, a professor of marketing at Jones Graduate School of Business at Rice University.

Ad Placement 300x100
Ad Placement 300x600

CultureMap Emails are Awesome

Rice University researchers unveil new model that could sharpen MRI scans

MRI innovation

Researchers at Rice University, in collaboration with Oak Ridge National Laboratory, have developed a new model that could lead to sharper imaging and safer diagnostics using magnetic resonance imaging, or MRI.

In a study recently published in The Journal of Chemical Physics, the team of researchers showed how they used the Fokker-Planck equation to better understand how water molecules respond to contrast agents in a process known as “relaxation.” Previous models only approximated how water molecules relaxed around contrasting agents. However, through this new model, known as the NMR eigenmodes framework, the research team has uncovered the “full physical equations” to explain the process.

“The concept is similar to how a musical chord consists of many notes,” Thiago Pinheiro, the study’s first author, a Rice doctoral graduate in chemical and biomolecular engineering and postdoctoral researcher in the chemical sciences division at Oak Ridge National Laboratory, said in a news release. “Previous models only captured one or two notes, while ours picks up the full harmony.”

According to Rice, the findings could lead to the development and application of new contrast agents for clearer MRIs in medicine and materials science. Beyond MRIs, the NMR relaxation method could also be applied to other areas like battery design and subsurface fluid flow.

“In the present paper, we developed a comprehensive theory to interpret those previous molecular dynamics simulations and experimental findings,” Dilipkumar Asthagiri, a senior computational biomedical scientist in the National Center for Computational Sciences at Oak Ridge National Laboratory, said in the release. ”The theory, however, is general and can be used to understand NMR relaxation in liquids broadly.”

The team has also made its code available as open source to encourage its adoption and further development by the broader scientific community.

“By better modeling the physics of nuclear magnetic resonance relaxation in liquids, we gain a tool that doesn’t just predict but also explains the phenomenon,” Walter Chapman, a professor of chemical and biomolecular engineering at Rice, added in the release. “That is crucial when lives and technologies depend on accurate scientific understanding.”

The study was backed by The Ken Kennedy Institute, Rice Creative Ventures Fund, Robert A. Welch Foundation and Oak Ridge Leadership Computing Facility at Oak Ridge National Laboratory.

Luxury transportation startup connects Houston with Austin and San Antonio

On The Road Again

Houston business and leisure travelers have a luxe new way to hop between Texas cities. Transportation startup Shutto has launched luxury van service connecting San Antonio, Austin, and Houston, offering travelers a comfortable alternative to flying or long-haul rideshare.

Bookings are now available Monday through Saturday with departure times in the morning and evening. One-way fares range from $47-$87, putting Shutto in a similar lane to Dallas-based Vonlane, which also offers routes from Houston to Austin and San Antonio.

Shutto enters the market at a time when highway congestion is a hotter topic than ever. With high-speed rail still years in the future, its model aims to provide fast, predictable service at commuter prices.

The startup touts an on-time departure guarantee and a relaxed, intimate ride. Only 12 passengers fit inside each Mercedes Sprinter van, equipped with Wi-Fi and leather seating. And each route includes a pit stop at roadside favorite Buc-ee's.

In announcing the launch, founder and CEO Alberto Salcedo called the company a new category in Texas mobility.

“We are bringing true disruptive mobility to Texas: faster and more convenient than flying (no security lines, no delays), more comfortable and exclusive than the bus or train, and up to 70 percent cheaper than private transfers or Uber Black,” Salcedo said in a release.

“Whether you’re commuting for business, visiting family, exploring Texas wineries, or doing a taco tour in San Antonio, Shutto makes traveling between these cities as easy and affordable as riding inside the city."

Beyond the scheduled routes, Shutto offers private, customizable trips anywhere in the country, a service it expects will appeal to corporate retreat planners, party planners, and tourists alike.

In Houston, the service picks up and drops off near the Galleria at the Foam Coffee & Kitchen parking lot, 5819 Richmond Ave.. In San Antonio, it is located at La Panadería Bakery’s parking lot at 8305 Broadway. In Austin, the location is the Pershing East Café parking lot at 2501 E. Fifth St.

---

This article originally appeared on CultureMap.com.

Houston-area lab grows with focus on mobile diagnostics and predictive medicine

mobile medicine

When it comes to healthcare, access can be a matter of life and death. And for patients in skilled nursing facilities, assisted living or even their own homes, the ability to get timely diagnostic testing is not just a convenience, it’s a necessity.

That’s the problem Principle Health Systems (PHS) set out to solve.

Founded in 2016 in Clear Lake, Texas, PHS began as a conventional laboratory but quickly pivoted to mobile diagnostics, offering everything from core blood work and genetic testing to advanced imaging like ultrasounds, echocardiograms, and X-rays.

“We were approached by a group in a local skilled nursing facility to provide services, and we determined pretty quickly there was a massive need in this area,” says James Dieter, founder, chairman and CEO of PHS. “Turnaround time is imperative. These facilities have an incredibly sick population, and of course, they lack mobility to get the care that they need.”

What makes PHS unique is not only what they do, but where they do it. While they operate one of the largest labs serving skilled nursing facilities in the state, their mobile teams go wherever patients are, whether that’s a nursing home, a private residence or even a correctional facility.

Diagnostics, Dieter says, are at the heart of medical decision-making.

“Seventy to 80 percent of all medical decisions are made from diagnostic results in lab and imaging,” he says. “The diagnostic drives the doctor’s or the provider’s next move. When we recognized a massive slowdown in lab results, we had to innovate to do it faster.”

Innovation at PHS isn’t just about speed; it’s about accessibility and precision.

Chris Light, COO, explains: “For stat testing, we use bedside point-of-care instruments. Our phlebotomists take those into the facilities, test at the bedside, and get results within minutes, rather than waiting days for results to come back from a core lab.”

Scaling a mobile operation across multiple states isn’t simple, but PHS has expanded into nine states, including Texas, Oklahoma, Kansas, Missouri and Arizona. Their model relies on licensed mobile phlebotomists, X-ray technologists and sonographers, all trained to provide high-level care outside traditional hospital settings.

The financial impact for patients is significant. Instead of ambulance rides and ER visits costing thousands, PHS services often cost just a fraction, sometimes only tens or hundreds of dollars.

“Traditionally, without mobile diagnostics, the patient would be loaded into a transportation vehicle, typically an ambulance, and taken to a hospital,” Dieter says. “Our approach is a fraction of the cost but brings care directly to the patients.”

The company has also embraced predictive and personalized medicine, offering genetic tests that guide medication decisions and laboratory tests that predict cognitive decline from conditions like Alzheimer's and Parkinson’s.

“We actively look for complementary services to improve patient outcomes,” Dieter says. “Precision medicine and predictive testing have been a great value-add for our providers.”

Looking to the future, PHS sees mobile healthcare as part of a larger trend toward home-based care.

“There’s an aging population that still lives at home with caretakers,” Dieter explains. “We go into the home every day, whether it’s an apartment, a standalone home, or assisted living. The goal is to meet patients where they are and reduce the need for hospitalization.”

Light highlighted another layer of innovation: predictive guidance.

“We host a lot of data, and labs and imaging drive most treatment decisions,” Light says. “We’re exploring how to deploy diagnostics immediately based on results, eliminating hours of delay and keeping patients healthier longer.”

Ultimately, innovation at PHS isn’t just about technology; it’s about equity.

“There’s an 11-year life expectancy gap between major metro areas and rural Texas,” Dieter says. “Our innovation has been leveling the field, so everyone has access to high-quality diagnostics and care, regardless of where they live.”