Monday, March 16, 2020

Is there an Influencer Marketing Bubble? And if so, will it burst?


An economic bubble is when the price of an asset exceeds its intrinsic value, usually because of unrealistic expectations about future value. In terms of influencer marketing, it means that some experts argue that influencer marketing can’t sustain the high returns customers are currently seeing. Or at least that’s what some naysayers argue.

The concept of an influencer marketing bubble keeps coming up because there are some arguments in favor of it. The market is crowded. As mentioned above, some 85 percent of marketers use influencers. A report by Celebrity Intelligence says that digital influencers are the most popular choice for brand endorsements.
When a market becomes so crowded, it’s easy to worry people aren’t considering the real value. Influencer marketing can be hard to quantify. 
There are also arguments in favor of an influencer marketing bubble that come with the territory of social media. As influencer value has grown, so have ways to game the system. Brands are now struggling to distinguish between real and fake engagement gained through bots and fake followers.
Influencer marketing isn’t going anywhere. But to avoid over-saturation, marketers must evolve. Initially, many brands turned to social media superstars to talk about their brands. But now, most data suggests that micro-influencers — or influencers in the sweet spot of 10,000 followers to 100,000 followers — are more effective than megastars who ask for six-figure paychecks. So I believe tailoring your influencer strategy around authentic influencers that audiences trust is key.
Other changes are around those quantifiable goals and metrics. Reach is important, but having active followings and engagement is better. Influencers who are true experts or advocates in a brand’s sector are much more valuable than big stars who partner with anyone with a large enough budget.

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