Influencer marketing is now well established, but the emergence of micro-influencers and uncertainty over the demographics of their audience has altered the landscape. So what shape is it in today?
Influencer marketing has firmly established itself as a means of promotion – and its prevalence certainly suggests it’s working.
But while the industry boasts some impressive statistics, the reality remains unclear.
According to HubSpot, influencer marketing holds the “second-highest ROI of any marketing trend“. Other research claims that the industry is projected to have an overall value of $22 billion by 2025.
This makes it a strategic mainstay, particularly for brands with larger budgets, which are in a position to take greater risks.
However, despite all this positive forecasting, more than a quarter of marketers (28%) admit they struggle to keep up with influencer marketing trends.
Consumer behavior and regulation around influencer advertising have also undergone significant changes in recent years, which makes it tougher for brands to ensure sustained success.
People want brands to be authentic – just ask Merriam-Webster – and not just onboard a bunch of familiar faces to run campaigns. They want, among other things, to see alignment of both the brand and the ambassadors chosen with their values.
But does influencer marketing continue to yield the results brands are looking for? Let’s take a look.
A brief overview of influencer marketing
With the growth of the internet came the birth of influencers – and at first, it really was the Wild West.
In the early 2000s, celebrity endorsements dominated the scene, but this was largely confined to television.
It was only as the decade went on that influencer marketing, using individuals with large followings on social media platforms rather than widely recognized celebrities, would start to come to light, with bloggers and early social media influencers becoming the first real organic influencers.
It’s often said that word of mouth and conversations with people you trust are the most valuable forms of marketing; if there are certain levels of trust and/or hype, it stands to reason that your campaign will likely achieve better results.
The 2010s saw an explosion of Instagram and YouTube influencers. This fundamentally changed the landscape as it created a direct connection between creators and viewers.
People had more opportunities to watch and engage with people’s content that they enjoy.
Influencer marketing has bridged the gap, and now, when your typical consumer spends more than two hours a day on social media, they can be that source of truth.
The number of micro-influencers, loosely defined as content creators with somewhere between 1,000 to 10,000 followers, has also boomed since the pandemic, when everyone was forced inside their homes and had time to create content.
TikTok in particular has helped to democratize influence and allow people with even relatively small followings to promote their brands.
They are often seen as more authentic and trustworthy than traditional influencers, and can offer brands a more niche audience with a better understanding of what it is their interested in.
Furthermore, with a tendency to have higher engagement rates from their audience, they are likely to be more valuable partners for brands aiming to boost awareness and drive sales.
Why consumer and regulatory behavior has changed influencer marketing
Today’s audience is thought to be more exposed to advertising than at any other point in history – so it should come as no surprise that the majority of people value authenticity over perfection.
Indeed, some of the most polished influencer campaigns have backfired spectacularly.
This is mostly because people can quickly spot inauthentic endorsements and are increasingly distrustful of traditional advertising.
In response, influencers have adapted their approach by prioritizing genuine connection with their followers, focusing on transparency in partnerships and maintaining their style of content.
If an influencer works with a brand that isn’t aligned with their audience’s values, they risk losing them and harming their long-term relationships.
The challenge lies in creating sponsored content that feels organic and valuable to the audience, even when it’s clearly labeled as an advertisement.
How to measure success in influencer marketing campaigns
Like many different forms of marketing, knowing what you want to achieve from influencer marketing and applying the right advertising metric allows you to understand whether a campaign is working.
If brand reputation is the objective, then engagement metrics such as likes, shares, and saves, in addition to brand sentiment, will provide the clearest indication of success.
Connecting with a micro-influencer might seem like a risk because they won’t reach as many people as influencers with larger followings. That said, one study found their engagement rate to be more than three times higher on average by comparison.
Those looking for more tangible success metrics should look towards conversion strategies such as discount code usage and referral link clicks.
On platforms like YouTube, where viewers often engage with longer-form content, these techniques have become increasingly effective due to the high level of audience attention.
The focus on data-driven decision-making and measurable outcomes can sometimes make it difficult to allow a creator to be … well, creative.
But, again, if you’re a brand that wants to connect with a certain influencer and their audience, nobody knows them better than themselves.
How to identify the right influencers for a brand
As more micro-influencers continue to appear and YouTube stars become more influential than more conventional celebrities, brands are refining their strategies for selecting and partnering with influencers.
Rather than solely focusing on the number of followers an influencer might have, brands are now tasked with analyzing things like audience demographics, engagement rates, content quality, and overall brand alignment.
Rigorous vetting involves analyzing an influencer’s past content, including a careful review of controversial posts or problematic brand partnerships.
Some brands might like to implement trial periods or small-scale collaborations as a first step before committing to larger campaigns.
Of course, this understanding of brand alignment also applies to influencers.
Recently, a group of British YouTubers received backlash for partnering with the British Army on a campaign.
There were two key reasons for this. First, the campaign involved a game that featured a certain level of violence (namely Fortnite, which, although set in a cartoon world, contains guns). Furthermore, the YouTubers’ primary audience was relatively young, which made this type of advertisement seem inappropriate.
I have a few issues with that Army Jobs activity.
1. Is it ethical (considering the age demos on Fortnite) to be targeting young people in this way?
2. Yung filly not thinking this one through properly is damaging for his brand.
— Bonita 🍉 (@BonitaRochelle) January 19, 2024
Frequent changes in social media algorithms also force both parties to stay on top of what is happening, as trends come and go, sometimes in a matter of hours.
There is, however, also an argument that it’s the simplest collaborations that create the greatest impact.
For example, British retailer Marks & Spencer recently teamed up with The Only Way Is Essex star Mark Wright and Made In Chelsea’s personality Spencer Matthews for a new fashion campaign.
Given their names, it was seen as the perfect fit. And with the company currently undergoing a rebrand to attract younger audiences, many in the UK picked up on the campaign, creating multiple earned media opportunities in the tabloids.
What does the future of influencer marketing look like?
As important as strategic partnerships and data-driven decisions are, the only way influencer marketing can maintain the impact it has had in recent years is through authenticity.
As the line between influencers and everyday consumers blurs, brands must adapt to stay relevant and achieve the desired results.
Discovering, vetting, and managing relationships with a larger pool of smaller influencers takes time and resources, and algorithm changes make larger investments riskier.
And whatever they choose to do, brands need to remain agile, constantly monitoring performance metrics and adjusting their approach with each piece of content they roll out during a campaign.
The integration of e-commerce features into social media platforms is likely to continue, and this makes the path from influence to purchase even faster.
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