This Week In Digital
How Influencer Marketing has Evolved in 2023
Influencer marketing has enabled brands to reach more targeted audiences online. Their endorsement and product placement has evolved into an opportunity for brands to tap into new communities. This marketing channel has brought forward a new understanding & expectations for brands. Let us take a look at how influencer marketing…
Influencer marketing has enabled brands to reach more targeted audiences online. Their endorsement and product placement has evolved into an opportunity for brands to tap into new communities. This marketing channel has brought forward a new understanding & expectations for brands.
Let us take a look at how influencer marketing has evolved in 2023:
Era of influencer subscription
Influencer subscriptions are an additional source of income for creators, offering exclusive content, benefits, and services to subscribers for a monthly fee. For example, creators in the US enjoy the benefit of Instagram subscriptions which allows them to earn recurring monthly income with the help of exclusive content & experiences for their followers. The rise in influencer marketing will lead more influencers to adopt subscription-based services to expand their revenue streams as well as their reach. With creators seeking alternative revenue streams, they have also become less dependent on their deals with brands. As a result, they will be more selective in collaborating with brands, which may lead to higher prices.
Live shopping to dominate influencer campaigns
In 2021 & 2022, live shopping became extremely popular, and this trend is all set to gain new heights in 2023. Using live video & engaging content, influencers will continue to promote products to their audience. Live shopping statistics show that the majority of consumers prefer live streams over other types of social media purchases. Many consumers now prefer shopping recommendations from live video streaming. The uptake of live shopping witnessed a huge rise during & post-COVID-19. People no longer believed in spending time shopping in-store. Instead, they looked for ways to engage with commerce sitting on their couch. In addition to this, brands like Amazon, Facebook, TikTok, and Instagram have developed live-stream shopping tools and partnerships.
Emphasis on diversity & values
With diversity becoming an important factor for consumers, brands should prioritise diversity in their influencer marketing strategy. Consumers nowadays wish to connect with brands that are actively investing in DEI initiatives. As per stats, around 77% of consumers buy more products and services after seeing content posted by creators that resonate with their values. Millennials and Gen Zs are more likely to be willing to pay for products and services that match their values and support companies that prioritise sustainability. Both influencers and consumers analyse brand messages and campaigns to ensure inclusivity, which will lead brands to align their cultures with inclusivity and remove all traces of exclusivity.
Rise of micro & nano influencers
Gone are the days when brands entirely relied on mega influencers. With the shift in the influencer marketing industry, many brands are now targeting to create partnerships with micro & nano influencers. Stats predict that micro-influencers tend to generate up to 60% more engagement than macro-influencers. This rise in engagement has led brands to hop onto the bandwagon of collaborating with micro & nano influencers. By focusing on nano and micro-influencers, brands can increase influencer marketing budgets while working with influencers who connect deeply with their audiences. Brands associated with nano-influencers are usually considered more authentic as influencers may have real relationships with the majority of their supporters.
Increase in influencer collaboration
Another big trend to be witnessed in 2023 in the influencer marketing industry is the rise of collaboration between influencers. Recently, content houses have been the talk of the town. These spaces for influencers & creators allow them to come together & collaborate. Some examples of creator houses are Sway House, Clout House, FaZe Clan, and more. Brands nowadays are keen on content houses as they gain enthusiastic influencers who work on their content all day long, expanding their brand's reach. Influencer collaboration will bring a win-win situation for everyone – Brands will be able to run better campaigns, influencers will be treated like professionals, & consumers will find their desired product at the best price.
With these evolutions in the influencer marketing industry, marketers would be witnessing a drastic change. Most of these trends would come out to be extremely useful for both influencers & marketers, opening multiple opportunities for both and resulting in higher sales & revenue.