According to a new report, celebrity influencer marketing is losing ground these days. Brands prefer to collaborate with regular people instead. What could be the reason?
Over 50% of brands want to extend their reach, and hope to achieve this through influencers. But are influencer campaigns really giving value for the money they earn?
A new report, the 2018 Sprout Social Index, proves that almost half (46%) of marketers believe that using influencers is vital, but less than 19% actually have the budget for it.
The explosion in influencers is creating what one PR firm calls an “authenticity crisis”. Splendid Communications reported the results of a UK survey that 43% think influencers are “often inauthentic” and work with brands “they don’t believe in.” A further 52% assume that if an influencer promotes a product, they have been paid to do so, even if they haven’t. 61% admit to unfollowing an influencer who worked with “inappropriate” brands or who “endorsed too many products.” Only 5% of this survey said that influencers are “genuine” and “only promote brands and products they truly believe in.”
Moreover, it turns out people tend to buy from friends’ recommendations other than influencer ones.
A new development reveals that most people prefer to buy or consider a product recommended from a friend rather than an influencer or celebrity. Similarly, when a friend gives a bad review about a product, no influencer’s ad can overturn our decisions to boycott the product. And again we ask, why is this so?
Within the $2 billion Instagram market, Germany-based influencer marketing platform InfluencerDB, estimates that one in four sponsored posts are being done by influencers with questionable audience growth, and engagement ratios. Brands are spending up to $500 million a year on fraudulent influencers. The high number of fake followers and bots have contributed to the rising mistrust in influencer campaigns.
A revolution might be starting and would adversely affect influencer marketing
There is a new strategy being taken up by brands. Due to the loss of trust in influencers, marketers are beginning to replace them with ‘real, authentic people’. And they are doing this by using their own employees! Employees are often brands’ biggest fans and will deliver the brand message in a more cost efficient way. A clear example is the seemingly successful Blendtec campaign, “Will it blend?”. Also, InfluencerDB’s report further states that over 70% of brands marketers use their employees as influencers or advocates today, or want to in the future.
43% of a sample think influencers are “often inauthentic” and work with brands “they don’t believe in.”.. Only 5% of this survey said that influencers are “genuine” and “only promote brands and products they truly believe in.”
Guess influencers need to find a new way to promote authenticity in their ads. We don’t want to have to live without them, do we?