The Changing Dynamic of Influencer Marketing

Brands Are Taking Control

Much has been written about influencer marketing and why brands should include it as part of their marketing channel strategy. Over the last couple of years, however, influencer marketing has changed significantly.

During Covid, many influencers saw their income disappear almost overnight as brands identified influencer content as one of the first costs to cut from their marketing budget. And even well-established influencers who previously commanded significant fees for their work, saw an abrupt drop in their revenues. 

While influencer marketing is making a comeback, the rules of engagement have changed dramatically. Influencers can still help companies reach a wider audience but brands are much more demanding when it comes to measuring results whereas previously, due in part to the novelty of influencer marketing, these same brands placed more emphasis on who they partnered with and not what results the influencer delivered.

What Are Brands Looking For

Influencer campaigns continue to offer a host of benefits, some measurable and some intangible. But at the same time, brands are looking for measurable results and in turn, paying much closer attention to the content and insisting on controlling the message to a greater degree in order to protect their image and values. Let’s have a closer look at what factors brands are taking into account as they revisit the influencer marketing opportunity.

1. The Cost-Effectiveness of Influencer Marketing: In the right circumstances, influencer marketing can be very cost-effective. In order to optimize the cost-benefit ratio, brands are trending more towards micro-influencers and nano-influencers who have a much more direct and personal connection to a highly targeted and engaged number of followers. These followers are truly ‘influenced’ by the recommendations shared on the influencer’s channels and are much more likely to convert on a CTA. This can have much more value to a brand than a channel with a larger following but with a limited chance of a return because the audience is not engaging. This presents a strong opportunity for smaller influencers to reevaluate their audiences and place more emphasis on building strong relationships with their markets.
2. Measuring ROI: Measuring the ROI of an influencer campaign has always been challenging. While influencer content also contributes to SEO, brand awareness, and credibility, more than ever marketers are looking for some form of measurability when it comes to the actual return on their investment in influencer campaigns. Depending on the goals of the program, those KPIs might take the form of increased revenues, more sign-ups, an improvement in SEO rankings, or more publicity for the brand. In any scenario, the changing shift in brand expectations is that influencers will be able to provide hard data that justifies the cost of the program and influencers are under increasing pressure to set forth realistic expectations and deliverables at the outset of their campaign.
3. Campaign Control: Brands are demanding much more control over the content and messaging with their influencers. Previously, brands relinquished much of the control to the influencers who dictated what was being said and how the message was being conveyed. While large brands always maintained complete control over the content, smaller brands have become much savvier about protecting their image and are much more demanding when it comes to insisting that influencer content must align with the business’s image, values, and messaging.
4. Trust and Brand Credibility: Influencers are known for the relationship they have built with their followers. But brands are looking for credibility in relation to their product or service. Are followers likely to convert because the influencer speaks with authority regarding the product in question or do they follow a specific influencer because of their funny Tik Tok dances? Will the audience, no matter how large, gravitate to the advertising or will they skip right over it as if it were simply background noise? If a brand can’t see the influencer as credible, the number of followers will be of little consequence.  
5. Expanding the Reach: Influencers often promote themselves based on the number of followers they have. While reach or perceived reach is important, vanity numbers have taken a back seat to actual engagement with a targeted audience. Campaigns on Tik Tok and IG are a hot trend but regardless of how many followers an influencer has, if visitors scroll right past your message on their channel, you’ll see little return on your investment. Brands want to reach consumers interested in their products.
6. SEO Bump: Influencer marketing content can undoubtedly contribute to and benefit a brand’s efforts. Well-written content in the form of posts or reviews helps increase visibility and is often recognized by Google in search results. As such, brands have grown much more insistent that influencers understand SEO in addition to understanding the product or service that they are promoting.
7. Authentic or Not: Brands are looking closer than ever to the authenticity of individual influencers. They are asking if the potential partner is promoting products simply for profit or do they truly have a presence that indicates they truly believe in what they are promoting. A disconnect between the influencer and the product they promote is a quick thumbs-down for brands who are paying close attention to their image.

Takeaways

Influencer marketing has changed significantly over the past several years. Brands are claiming control over all aspects of their influencer campaigns. Influencers who align with brand messaging and work cooperatively will deliver a much stronger and measurable ROI for their clients. In order to implement a successful campaign, both brands and influencers should carefully assess expectations and jointly determine if they can confidently expect to achieve the intended results. Brands should take the time to understand the influencer audience, messaging format, channel distribution, and other factors in order to identify the best influencer for their needs. Influencers should clearly understand the brand messaging, target audience, image, and expected deliverables before agreeing to accept a mandate if they are looking to build a long-term relationship with specific brands.