At different junctures over the last ten years, publications like Forbes, Rolling Stone, the Huffington Post, and many others have published think-pieces that broadly ask the same question: Is Influencer Marketing Dead? Some of the articles have been nuanced, correctly pointing out that influencing is far from dead (it’s expected to generate $24 billion across the industry in 2024) but evolving. And for businesses thinking about harnessing the power of influencing, understanding that evolution is paramount.
The first and arguably most important shift has been an understanding that the quality of engagement matters more than the quantity. In short, there has been a recognition that brands can pivot to smaller (micro) influencers in terms of number of followers. The intimacy that grows between a micro-influencer, which is typically seen as someone with 1,000 to 100,000 followers, and the audience can lead to much higher conversion rates than a mega-influencer with millions of followers. Higher engagement rates, cost-effectiveness, and the creation of brand authenticity are all cited among the reasons micro-influencers have seen much success in the 2020s.
Niche Subjects Can Command Big Followings
The second area where influencing has evolved is in the broadening of products and services. Traditionally, influencing was heavily focused on categories like health, beauty, and, to an extent, well-being. Now, it has broadened to cover every subject imaginable. What’s arguably interesting, though, is that seemingly niche topics may command large audiences. For example, some top slot influencers, such as NG Slot, have over 500K followers on YouTube, approaching the mega-influencer territory. Whatever the area, you can find a broad following for it.
There has also been a broadening of platforms. While Instagram remains the biggest, followed by YouTube an TikTok, we have seen the emergence of influencing on platforms like LinkedIn, Twitter/X, and Twitch. In addition, many newer social media platforms like BeReal and noplace have carved out niches in influencing, particularly for Gen-Z. Others, such as Patreon, OnlyFans, Discord, Caffeine, and even SubStack, have an important role.
While we can claim influencing is far from dead, there are several challenges. The concept of trust is one of the most important yet least quantifiable. By and large, there has been a perceived shift to the concept of community. Some theories espouse that we are drawn to the reaction of the community following rather than the influencer themselves, with some citing the comments section as much more important for a gauge of trust than the content.
Yet, once again, this nudges us to the idea of the micro-influencer being able to convey a greater sense of trust than the mega-influencer. There is a consensus that influencers cannot “wing it,” i.e., pretend to have a belief in a brand when it is clearly tenuous. The best influencers, regardless of whether they are micro or mega-influencers, will be passionate about the brands they promote. It needs to be both logical and believable; otherwise, the brand can be damaged.
Brands and Influencers Must Anticipate Regulation
Regulation is also a challenge. Generally speaking, influencers and brands behind them have been able to navigate rules set up by both governments and social media companies, such as YouTube’s insistence that videos carry a label of paid advertisement. Yet, there are minefields to be wary of. For example, celebrities promoting crypto products have gotten into hot water in the past, and some seem to be ignoring the warning signs in 2024 again. Straying into areas like medical advice – think of the craze in Wegovy injections for weight loss right now – can be highly risky.
Finally, there is the question of the future technology, with AI in particular looking like it will disrupt the industry. AI – or virtual – influencers are starting to pop up all over the social media landscape. Some are a little crude, but others are intriguing, and the technology is adapting fast. For influencers, there is a clear and present need to recognize the role of AI, perhaps by taking an If you can’t beat ‘em, join ‘em approach. But for brands, too, there is danger. We are starting to see some real pushback against AI-generated content, particularly when AI is seen to supplant those working in creative industries. Using AI influencers, as such, may backfire.
In the end, the influencer model will continue to evolve. There is arguably no going back now. It is ingrained in social media and thus must not be an afterthought in the band’s marketing and advertising campaigns. But companies must follow the evolutionary steps of the business of influencing. It has changed dramatically over the last ten years, and it will continue to change as we adapt to AI in the coming years.
