{"id":141081,"date":"2020-05-13T16:27:50","date_gmt":"2020-05-13T16:27:50","guid":{"rendered":"https:\/\/www.searchenginewatch.com\/?p=141081"},"modified":"2020-05-13T16:27:50","modified_gmt":"2020-05-13T16:27:50","slug":"how-influencer-marketing-can-survive-the-oncoming-recession","status":"publish","type":"post","link":"https:\/\/searchenginewatch.com\/2020\/05\/13\/how-influencer-marketing-can-survive-the-oncoming-recession\/","title":{"rendered":"How influencer marketing can survive the oncoming recession"},"content":{"rendered":"<div class=\"well\">\n<h3>30-second summary:<\/h3>\n<ul>\n<li><span data-contrast=\"none\">The marketing and advertising industry is bracing itself for a slowdown, with <\/span><span data-contrast=\"none\">analysts steadily adjusting ad spending forecasts<\/span><span data-contrast=\"none\">. Marketers will keep a close watch to determine what drives the most value.<\/span><\/li>\n<li><span data-contrast=\"none\">Influencer marketing has surged in popularity recently, and investment was expected to\u00a0<\/span><span data-contrast=\"none\">hit $15 billion in 2022<\/span><span data-contrast=\"none\">, according to pre-pandemic forecasts. However, COVID-19 has skewed the current picture for influencer marketing.\u00a0<\/span><\/li>\n<li><span data-contrast=\"none\">To better understand what survival looks like, we&#8217;ll examine two distinct brand scenarios that enterprises are experiencing at this moment, how these different circumstances are likely to impact their influencer strategies, and what they can do to get the most out of influencers going forward.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/li>\n<\/ul>\n<\/div>\n<p><span data-contrast=\"none\">As millions of Americans continue sheltering in place and weekly unemployment numbers continue to bring bad ne<\/span><span data-contrast=\"auto\">ws, it\u2019s clear that the COVID-19 pandemic is having a negative effect on the global economy \u2014 the\u00a0<\/span><a href=\"https:\/\/www.bea.gov\/data\/gdp\/gross-domestic-product\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-contrast=\"none\">U.S. real gross domestic product (GDP) decreased 4.8 percent<\/span><\/a><span data-contrast=\"auto\">\u00a0in the first quarter of 2020.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">The marketing and advertising industry is bracing itself for a slowdown, with<\/span><a href=\"https:\/\/www.emarketer.com\/content\/us-mobile-ad-spending-2020\"><span data-contrast=\"none\">\u00a0<\/span><\/a><a href=\"https:\/\/www.emarketer.com\/content\/us-mobile-ad-spending-2020\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-contrast=\"none\">analysts steadily adjusting ad spending forecasts<\/span><\/a><span data-contrast=\"none\">. Different components of marketing and partnership plans may be impacted differently by these changes in spending, but marketers will be closely examining all of their spendings throughout the year to determine what drives the most value. <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<h2><b><span data-contrast=\"none\">Influencer marketing in the age of recession<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/h2>\n<p><span data-contrast=\"none\">Influencer marketing has surged in popularity recently, and investment was expected to <\/span><a href=\"https:\/\/www.businessinsider.com\/influencer-marketing-report\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-contrast=\"none\">hit $15 billion in 2022<\/span><\/a><span data-contrast=\"none\">, according to pre-pandemic forecasts. Even with this level of interest, influencer programs are likely to face scrutiny amid shrinking budgets. To ensure their survival, partnership managers will need to fully grasp the ROI of their influencer programs and leverage them to the fullest, ensuring that they can reach engaged, receptive, attentive audiences, in this moment and beyond.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">To better understand what survival looks like, let\u2019s examine two distinct brand scenarios that enterprises are experiencing at this moment, how these different circumstances are likely to impact their influencer strategies, and what they can do to get the most out of influencers going forward.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<h2><b><span data-contrast=\"none\">Two economic scenarios, one shared outcome<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/h2>\n<p><span data-contrast=\"none\">Many brands find themselves either watching business slow amid the belt-tightening brought on by a restrictive economy, or they are unexpectedly booming because their products have become more important than ever for consumers sheltering in place. The irony is that these brands are commonly reacting the same way, they are cutting back on their spend, especially with influencers, much to their detriment. No matter the current scenario, brands have ways to strengthen, rather than weaken, their influencer programs.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<h3><b><span data-contrast=\"none\">Scenario 1: Feeling the strain<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/h3>\n<p><span data-contrast=\"none\">Travel, high-end retail,<\/span><span data-contrast=\"none\">\u00a0<\/span><span data-contrast=\"none\">financial services and insurance, in particular, have felt the cultural and economic impacts of COVID-19. As a result, these businesses are slashing marketing spend out of necessity, directly impacting their influencer programs. Net-a-Porter, Ralph Lauren, Victoria\u2019s Secret, and other retailers<\/span><a href=\"https:\/\/www.adweek.com\/brand-marketing\/no-coronavirus-isnt-the-end-of-influencer-marketing-but-it-has-put-it-under-a-microscope\/amp\/\"><span data-contrast=\"none\">\u00a0<\/span><\/a><a href=\"https:\/\/www.adweek.com\/brand-marketing\/no-coronavirus-isnt-the-end-of-influencer-marketing-but-it-has-put-it-under-a-microscope\/amp\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-contrast=\"none\">have suspended their affiliate marketing programs,<\/span><\/a><span data-contrast=\"none\">\u00a0while others are pausing or even abandoning influencer relationships.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">With <\/span><a href=\"https:\/\/www.axios.com\/social-media-overuse-spikes-in-coronavirus-pandemic-764b384d-a0ee-4787-bd19-7e7297f6d6ec.html\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-contrast=\"none\">social media<\/span><\/a><span data-contrast=\"none\">\u00a0and<\/span> <a href=\"https:\/\/fortune.com\/2020\/04\/15\/youtube-tv-coronavirus-subscribers-big-cable-streaming\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-contrast=\"none\">YouTube<\/span><\/a><span data-contrast=\"none\">\u00a0usage on the rise, there are clear opportunities for <a href=\"https:\/\/searchenginewatch.com\/2020\/05\/01\/social-media-influencers-fight-back-the-coronavirus-disruption\/\" target=\"_blank\" rel=\"noopener noreferrer\">influencer partnerships<\/a> to deliver value. The question these brands have to answer is how they can continue to win investment for influencer programs as overall marketing budgets tighten. The answer is in evaluating influencer partnerships as an acquisition channel, not a branding channel.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<h3>Solution: Make every dollar accountable<\/h3>\n<p><span data-contrast=\"none\">Brands that are upholding pay-per-post or fixed fee partnership terms can still prioritize influencer activations that can be evaluated on a direct-response basis, by unique links, QR\/promo codes, and landing pages. In doing this, partnership managers can account for the return on each dollar going into the influencer channel, removing any risk and ambiguity. Understanding ROI is essential to winning organizational buy-in and growing investment, and many operationally mature influencer programs were already heading this direction before the pandemic. Now, this strategy is critical to the survival of\u00a0<\/span>all\u00a0influencer marketing programs.<\/p>\n<p><span data-contrast=\"none\">Another option is for brands to consider building out performance-based influencer partnerships, only spending money when you make it. In this time of uncertainty, influencers may be willing to shift their terms, moving from a fixed-fee model to one based around performance, in order to keep their own partnerships intact.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<h3><b><span data-contrast=\"none\">Scenario 2: Business is booming<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/h3>\n<p><span data-contrast=\"none\">While <a href=\"https:\/\/searchenginewatch.com\/2020\/04\/29\/google-trends-in-covid-19-times-and-how-to-use-them-in-content\/\" target=\"_blank\" rel=\"noopener noreferrer\">COVID-19<\/a> is taking a toll on some verticals, others are watching their business grow as the result of a drastically changing market landscape.<\/span> <a href=\"https:\/\/www.foodnavigator-usa.com\/Article\/2020\/03\/19\/COVID-19-Packaged-food-beverage-brands-enjoy-surging-sales-but-mass-unemployment-could-change-the-landscape-rapidly\" target=\"_blank\" rel=\"noopener noreferrer\">Packaged food and beverage<\/a>,<a href=\"https:\/\/www.forbes.com\/sites\/kaleighmoore\/2020\/04\/17\/retailers-selling-non-essentials-see-double--triple-digit-increases-in-online-sales-during-covid-19-crisis\/#56f270556431\">\u00a0<\/a><a href=\"https:\/\/www.forbes.com\/sites\/kaleighmoore\/2020\/04\/17\/retailers-selling-non-essentials-see-double--triple-digit-increases-in-online-sales-during-covid-19-crisis\/#56f270556431\" target=\"_blank\" rel=\"noopener noreferrer\">athletic wear, and home goods<\/a><span data-contrast=\"none\"> are all seeing upticks in online sales. Unfortunately, these brands may also deprioritize marketing spend because their organic growth is so high. This could result in slashing commission rates, as well as pausing partnerships altogether because they feel they don\u2019t need to promote themselves as heavily at this moment.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">We are already seeing this in the affiliate space, with Amazon<\/span><a href=\"https:\/\/www.cnbc.com\/2020\/04\/14\/amazon-slashes-commission-rates-for-affiliate-program.html\"><span data-contrast=\"none\">\u00a0<\/span><\/a><a href=\"https:\/\/www.cnbc.com\/2020\/04\/14\/amazon-slashes-commission-rates-for-affiliate-program.html\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-contrast=\"none\">cutting commission rates as much as five percent<\/span><\/a><span data-contrast=\"none\">\u00a0for some product categories. This will<\/span> <a href=\"https:\/\/digiday.com\/media\/this-is-exposing-our-weak-points-amazon-changes-teach-publishers-again-platform-dependence-is-risky\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-contrast=\"none\">hurt publishers<\/span><\/a><span data-contrast=\"none\">\u00a0that have long relied on the revenue from their partnerships with Amazon (and have certainly helped Amazon sell products along the way). Amazon\u2019s actions<\/span><a href=\"https:\/\/impact.com\/partnerships\/what-amazon-associates-can-do-to-avoid-losses-after-massive-commission-cuts\/\"><span data-contrast=\"none\">\u00a0<\/span><\/a><a href=\"https:\/\/impact.com\/partnerships\/what-amazon-associates-can-do-to-avoid-losses-after-massive-commission-cuts\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-contrast=\"none\">violate the principles of a successful partnership relationship<\/span><\/a><span data-contrast=\"none\"> \u2014 namely the sustained collaboration, term optimization, and trust needed to drive mutual benefit for both parties. Fortunately, partners hurt by Amazon\u2019s actions can <\/span><a href=\"https:\/\/impact.com\/partnerships\/hurt-by-amazons-commission-cuts-here-are-programs-accepting-new-partners-today\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-contrast=\"none\">turn to other programs<\/span><\/a><span data-contrast=\"none\">.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<h2>Solution: Make decisions that ensure program survival<\/h2>\n<p><span data-contrast=\"none\">Amazon\u2019s play for short-term savings is shortsighted, and the strategy would be equally ill-considered for any brand that slashes commissions to its influencer program. Brands should be making all of their decisions around the goal of ensuring their partnership programs survive \u2014 and even flourish \u2014 during this global moment.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Influencer partnerships are long-term relationships, so it\u2019s better to operate with smaller budgets rather than cancel these programs outright. After all, these are partnerships with individual people who get hurt when their contracts are zeroed out.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Partnerships provide an incredibly powerful growth channel when they\u2019re supported. In operationally mature partnership programs, partners are more than just hired guns brought on to drive brand awareness and deliver promotional offers. They\u2019re an extension of the brand itself. Steadfast partnerships can secure new audiences, enhance customer loyalty, and multiply customer lifetime value \u2014\u00a0 benefits that withstand market upturns and downturns.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">With creative studios closed and social distancing making it next to impossible to coordinate professional photoshoots, brands are running into issues producing content through traditional methods, <\/span><a href=\"https:\/\/www.voguebusiness.com\/companies\/influencers-currency-has-increased-during-covid-19-crisis-marketing\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-contrast=\"none\">according to Jordie Black,<\/span><\/a><span data-contrast=\"none\">\u00a0an influencer marketing expert with Zine.co.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Brands that have active, well-established influencer partnerships have an advantage in this moment because they can leverage the deep connection to the influencer\u2019s audience, as well as the influencer\u2019s familiarity with the brand to maintain a flow of content. Consumers look to influencers as a voice of authority at all times, so brands that can leverage those relationships can still influence and engage consumers will succeed, according to Black.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<h2><b><span data-contrast=\"none\">Invest in influencer partnerships now for future success<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/h2>\n<p><span data-contrast=\"none\">No matter the situation, the bottom line remains the same: it&#8217;s more important than ever to invest in influencer programs. The channel was already moving towards an attributable model, and the unfortunate events of this pandemic are accelerating that evolution. Feeding an influencer program with resources and support, while simultaneously turning it into an acquisition channel will pay long-term dividends for brands.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><em>Molly Doyle Young is a Product Marketing Manager at Impact, where she brings her B2B SaaS background to the partnership automation space.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Impact&#8217;s Molly Young examines two distinct brand scenarios, how these different circumstances are likely to impact their influencer marketing strategies, suggestions to track ROI, and the way forward.\u00a0<\/p>\n","protected":false},"author":1092,"featured_media":141085,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7,9],"tags":[27835,348,1275,27836,503,27842],"content_type":[],"class_list":["post-141081","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry","category-social","tag-covid-19-and-influencer-marketing","tag-influencer-marketing","tag-influencers","tag-instagram-influencers","tag-paid-social-media","tag-social-media-marketing-smm"],"acf":{"tad_independentcommercial":false,"tad_content_format":false},"post_info":{"name":"idris.nagri@blenheimchalcot.com idris.nagri@blenheimchalcot.com","title":"","thumbnail_url":"https:\/\/searchenginewatch.com\/wp-content\/uploads\/2020\/05\/how-influencer-marketing-can-survive-the-oncoming-recession.jpg","category":"Industry","timeago":"6y"},"_links":{"self":[{"href":"https:\/\/searchenginewatch.com\/wp-json\/wp\/v2\/posts\/141081","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/searchenginewatch.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/searchenginewatch.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/searchenginewatch.com\/wp-json\/wp\/v2\/users\/1092"}],"replies":[{"embeddable":true,"href":"https:\/\/searchenginewatch.com\/wp-json\/wp\/v2\/comments?post=141081"}],"version-history":[{"count":0,"href":"https:\/\/searchenginewatch.com\/wp-json\/wp\/v2\/posts\/141081\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/searchenginewatch.com\/wp-json\/wp\/v2\/media\/141085"}],"wp:attachment":[{"href":"https:\/\/searchenginewatch.com\/wp-json\/wp\/v2\/media?parent=141081"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/searchenginewatch.com\/wp-json\/wp\/v2\/categories?post=141081"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/searchenginewatch.com\/wp-json\/wp\/v2\/tags?post=141081"},{"taxonomy":"content_type","embeddable":true,"href":"https:\/\/searchenginewatch.com\/wp-json\/wp\/v2\/content_type?post=141081"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}