Influencer marketing has all the hype today, but is it going to stay the same everyday? Well some experts have weighed in on the possibility, and they think that the whole fuss about influencers is gradually dying out. Here’s how they looked at it…
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A number of marketing experts and influencers themselves have revealed that the market is no longer as worthwhile, to say the least. The time when influencer marketing was fresh and exclusive is over. There are so many people in the industry now, and way to many fakes. Consumers are seeing through the hype faster than before, and very soon it’ll all become irrelevant.
Toan Nguyen, 32, a partner at the “Jung von Matt / Sports” advertising agency, Nguyen did a thorough study. He likes to call it the World’s Largest Study on Influencer Marketing. The key things he researched on was the importance of influencer marketing, how lucrative it was and how fast the industry was growing. And he had rather interesting results…
Influencer marketing is going down…FAST!
Yup, the conclusion of Nyugen’s study with a sample size of 1200 top influencers, was that the market is dying. Being an influencer two years ago is not the same now. Pretty short life span huh?
Influencer buzz will soon fade away–according to experts
Furthermore, monies spent on influencer marketing is reducing. According to InfluencerDB, brands spent over 3 billion euros last year on Instagram Influencers alone. But can the same story be told in 2018? Top influencers may not be able to command higher prices because ‘authentic’ engagement rates is now a topic of interest. In fact, spokesperson for the platform, Mona Hellenkemper believes that smaller influencers are more likely to be successful in the market.
“The success of influencers in particular, who have a close relationship with their followers, will continue to increase.”
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Micro and nano influencers to take over
Nyugen emphasizes on Mona’s point, that micro influencers are doing the real ‘influencing’. Brands have now realized that consumers prefer a closer relationship, and are tapping into that. People with less followers but better interaction ratio, are seen as friends. “And clearly you buy what your friends recommend,” says Nguyen.
“Economically speaking, influencers for brands were a one-stop shop experience: concept, production and distribution in one. Everyone thought that this was the biggest thing there was. But influencer marketing has become a displacement market. A market that is reaching its limits and has begun to filter its content.”
Newer algorithms are making it even harder
Social media platforms like Facebook have changed how their systems works, so the battle for attention is tougher. News feed are cleaned out so frequently that influencers are now struggling to be seen. “In order to maintain their position in this market, companies now have to take real money into their hands,” says Nguyen. How high the advertising value of influencers are made even more difficult due to algorithm.
Moreover, brands are more serious about loyalty and authenticity. “The followers and above all the companies are less and less likely to be taken for fools,” Nyugen added.
So if you thought you could trick the market with fake followers and likes, then think again. Not only is Instagram busting you, but brands are rejecting you!