The age of the influencer is upon us. Consumers are fed up with being bombarded with constant brand-direct communications, ads, trackers, and automated sequences. Instead, they yearn for authentic engagement, and seek recommendations from trusted voices including influencers and bloggers, and of course, creator platforms such as TikTok and Instagram.
As consumer behaviour evolves and these social media channels begin to permeate people’s daily lives, the overall creator economy is expected to double in size to $480bn within the next five years and could reach half a trillion by 2027.
As a testament to the vast popularity of creators among consumers, and in a bid to meet these evolving consumer needs, recent impact.com research reveals that 76% of brands are planning to increase their influencer marketing programs in 2024, while 86% of creators want to work with more brands.
Establishing a mutual framework to build on this foundation is key for marketers and influencers. This latest research shows where brands and creators align, where they differ, and how to bridge the gap to support more successful influencer partnerships.
Why does influencer marketing work so well?
For brands, influencers represent a completely new channel for engaging vast, relevant pools of active consumers.
For the creator, this line of work has become an increasingly popular career choice, because of the sheer opportunity to reach growing audiences and leverage this power with brands, but also as a ‘side hustle’, because of the flexibility influencer relationships afford.
Finally, for the consumer, influencers provide unprecedented access to trusted recommendations. They are a source of authentic and relatable information for an audience increasingly jaded by traditional advertising practices. As our research shows, brand promotions feel more genuine when a creator posts about them multiple times, with 63% of consumers repeatedly making purchases based on an influencer’s recommendation or review at least some of the time.
Examples of a successful brand-creator partnership include Bowlero, who wanted to tap into the creator economy to drive bookings. Producing great content on date night activities, food recs, and local travel tips, influencer campaigns achieved over 4.4 million total impressions and a 6.7% average engagement rate. In fact, this social media amplification generated 25% of clicks and 40% of impressions.
Where do brands and creators align?
1. Recruitment method:
The research’s key finding is that influencers prefer to initiate potential collaborations (64%), and most brands also prefer this dynamic. Only 4% of brands prefer to contact creators themselves.
2. Compensation model:
Both parties are also in favor of a hybrid compensation model, where a flat fee is complemented by the prospect of commission-based payments. However, creators are more open to a performance-based commission after establishing a good relationship with that brand (33%) vs new partnerships (18%).
3. Outreach method:
For US brands, the most preferred methods are direct mail and email, which align with creator preferences and are how creators contact brands most often.
4. Long-term commitment:
While many factors are driving long-term commitment between brands and creators, the predominant reason for both parties is quality. Perhaps unsurprisingly, for brands, it’s all about quality content, while creators value a high-quality product that they feel comfortable endorsing time and time again. Another hugely important factor is having a good two-way relationship: brands value creators who are professional and timely communicators, while creators crave creative freedom and clear guidelines. Last but not least, performance (e.g. content views, clicks, or conversions) is an important factor for brands in deciding whether to establish a long-term relationship with a particular creator.
Marketing Technology News: MarTech Interview With Seth Nesbitt, CMO @ Zuper
Where do brands and creators differ?
To future-proof the creator-brand relationship, it is imperative to understand where current gaps might be stifling its potential. The two main areas where brands and creators differ are their reasons for choosing and ending a partnership.
1. Choosing a partnership:
While brands prioritize the quality of a creator’s work over all else, creators are more focused on transparency, i.e. having expectations clearly set out and mutually agreed upon from the outset. Compensation is also a major factor for creators, with 43% ready to sever ties with a brand after agreeing to work with them if it falls below their expectations.
2. Ending a partnership:
Miscommunication can damage the partnership—often irrevocably—for both parties. For instance, it can lead to creators feeling overwhelmed, missing deadlines, and ultimately ghosting. Meanwhile, the brand may terminate the partnership due to missed deadlines and a perception of poor communication skills.
Bridging the gap for mutual success
Responses from brands and creators strongly support an overarching theme: trust and communication are the key factors in growing effective, long-term relationships that deliver results. So, how can brands and creators collaborate to ensure tighter alignment and longevity?
1. Share goals:
For brands especially, treating creators as equals, but also being prepared to share examples of brand expectations, will forge the most effective partnership. When creators feel like true partners, they’re inspired to create compelling content.
2. Ensure transparency:
Honest and open interactions —including asking for more time with a product—can vastly increase the quality and impact of content.
3. Trust the creator’s expertise:
Currently, most creators feel brands are too stringent on what needs to be said or done and when. For instance, the best way to deliver authentic content that converts to product reviews is to throw away the script and be as natural as possible.
4. Connect over compensation:
From speaking to brands and creators, aligning on compensation is the key to incentivizing creators to continually do better.
From recruitment to compensation to aligning on expectations, by understanding the complex dynamics of influencer marketing – and what makes each other tick – brands, and creators can become natural allies as they ride the influencer marketing wave of 2024 and find opportunities for long-term success.
Marketing Technology News: AI-Powered Marketing: Enhancing Personalization and Efficiency at Every Stage of the Funnel
