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Tick Tock, the Clock is Running Out on Influencer Marketing

Tick Tock, the Clock is Running Out on Influencer Marketing

We hear daily how interest rates are rising, the cost of goods continues to increase, and the economy is on a downward spiral. All of these notions can be daunting for any business owner and can be cause for concern and budget reassessment. If you’re a business owner looking to increase your margins, cutting your marketing spend, however, is not something you should consider.

 

In recent years, many companies have forgone the traditional agency or in-house team approach with their marketing and have tried to market using more “organic” content; ie, influencer marketing. While this may seem like a more cost-effective way to increase your reach, it isn’t recommended as a sustainable strategy for building your business and generating measurable results.

 

What is Influencer Marketing?

 

Influencer marketing is a method of advertising in which a brand collaborates with popular social media users for product promotion. Instead of running branded campaigns to promote products or services, companies will rely on social media users to provide brand reviews, testimonials, or “product unboxing” videos. Influencer marketing has been appealing to brands because it seems more organic than traditional advertising campaigns.

 

Influencer marketing was an attractive option for brands when it first became popular because of its cost. Most influencers are paid a flat rate upfront, so businesses can easily determine who they can afford. Traditional marketing budgets, especially digital PPC and social media advertising campaigns, regularly fluctuate depending on the reach a brand wants to achieve and the results of it. Traditional marketing campaigns also rely on multiple people to create and approve content. Because influencer marketing typically only requires interaction with the influencers themselves, brands had originally anticipated influencer marketing would be a cost-effective and easy way to boost sales and grow their reach.

Is influencer marketing on the decline?

Why is Influencer Marketing Not Effective?

 

Influencer marketing may soon be a marketing method of the past, and for good reason. Aside from being hard to track, it is hard to regulate, and popular influencer platforms may soon not be as accessible to consumers as they currently are.

 

Influencer Marketing is Hard to Track Results With

 

In traditional omnichannel campaigns, results are measurable. With UTM codes, PURL’s, email automation software, and easy-to-aggregate data from Google and Meta campaigns, it has never been easier to track the success of marketing campaigns. When campaign data is studied and analyzed, marketers can make the necessary adjustments to continue improving and achieving results.

 

Influencer marketing, on the other hand, can be hard to measure and determine a ROI from. Even if your brand gives an individualized code for each user to ask their viewers to use at checkout, that is not always reliable. Some consumers may use a code one time and not be repeat customers, while some may become loyal customers but utilize various codes to get multiple discounts. In addition to this, social media algorithms, especially Tik Tok, the most popular influencer platform, are regularly changing and adjusting, so there is no guarantee the videos your paid influencers are making are being seen by the right audience. If you want targeted ads that will get in front of the eyes of real potential buyers, a comprehensive omnichannel strategy is the only way to measure and track your campaigns, as well as to strategically place them in front of the right audiences.

 

Influencer Marketing is Hard to Regulate

 

When you hire an experienced marketing agency to run your advertising, you’re working with seasoned professionals who understand how to effectively brand and message your company. Hiring an influencer is a huge risk when it comes to quality control and effective messaging. Sure, you can give someone a script to read or key talking points, but you’re hiring an influencer; not an advertiser, to advertise your brand. Also, the aforementioned up-front method of payment means you’re taking a risk with your budget because if you aren’t happy with the quality of the marketing assets you receive back, there’s a good chance the influencer may charge additional fees to re-shoot it.

 

Influencer Marketing Is Not Built to Last

 

Because of the parasocial relationships most influencers’ followers develop with them, influencers and brand representatives run the ongoing risk of losing popularity or favor with their audience. If an influencer does something their audience doesn’t approve of and they represent your brand, you can run the risk of your brand falling out of favor with consumers as well.

 

Lastly, the social media platforms that influencers gain their popularity on more than likely will not withstand the test of time. Social media platforms are frequently evolving and adapting, and there is no guarantee that an influencer’s following on one platform will carry over to other formats. Currently, Tik Tok is one of the most widely used social media platforms worldwide. A recent House of Representatives bill, however, is working to change that.

 

What Does the Tik Tok Bill Mean for Influencer Marketing?

 

While the bill doesn’t automatically ban the app from the App store, it does propose giving its parent company, ByteDance, 5 months to sell it. If the app is not sold within that timeframe, it will become illegal for the App store and Google Play store to make the app available for download. However, if the app is successfully sold, there is no telling how the new algorithm will work or what the advertising standards will be. As a result, if the app is no longer available, then influencer marketing will essentially disappear.

You want to create a strong marketing strategy that won’t be deregulated or shut down by government legislation, so stop attempting to cut costs on marketing with influencers and invest in a well-known marketing agency. At Kymera, we have over 20 years of omnichannel experience and can place you in front of the right buyers with the right messages – without any legislative intervention. If you’re ready to stop gambling with your marketing budget, contact us today.

 

We are Kymera. Let’s get to WRK.