Analysts say the chances of the economy going into a recession are “uncomfortably high.” When the economy slows, companies tend to cut their marketing budgets. Some brands are already doing so, according to Insider Intelligence. While auditing marketing costs is always wise, it’s important to explore the long-term value of marketing methods before making cuts. Having an influencer marketing strategy, for example, is still a wise investment in your brand — even if the economy is a bit shaky. Here’s why:
Influencer marketing has a solid ROI
Influencer marketing can return $6.50 for every $1 spent; that’s a 650% return on investment. With that kind of ROI, it doesn’t make sense to cut influencer marketing from the budget. Just the opposite, actually. During an economic slowdown, investing in strategies with high ROI is a smart way to keep your marketing engine revving.
Influencers offer the social proof conservative spenders need
Consumers tend to cut back on “extras” when the economy is unstable. They aren’t as quick to spend on things like travel, clothes or eating out. When they are willing to splurge on a purchase, they often need a little convincing. They’re more likely to do research and read testimonials, for example, to make sure the purchase is sound.
Influencers help provide that social proof. When consumers see their favorite influencer endorsing a product, they notice. They read the influencer’s comments and heed their advice because consumers trust influencers. Sometimes, that’s all consumers need, even during a recession, to make a purchase.
Consumers trust influencers
When you collaborate with influencers, you leverage the trust that’s already built — which is valuable when consumers tighten their budgets.
Working with an influencer means your brand is “trusted by association.” It’s sort of like level-jumping a relationship. Rather than starting out with a cold introduction, your brand is already seen as a friend. That’s a good place for any brand to start from.
In today’s society, influencers are trusted over celebrities. According to our recent survey on influencer trust, sixty-two percent of consumers say they trust the endorsements of their favorite content creators more than they do A-list celebrities.
Repurposing content means saving money
Content marketing takes time. With influencer marketing, you not only get a sponsored post and exposure on an influencer’s social channel, but you can repurpose that content.
When you sign a contract with an influencer, add a clause allowing you to reuse the content for six to 12 months. By doing so, you can get more mileage out of the content, which saves you both time and money. During a recession, both are valuable commodities.
You can reshare a sponsored post on your social channels, use the testimonial on marketing materials, and include the content in your regular newsletter.
Check out our “7 Tips to Repurpose Influencer Content” article to learn more.
Influencer marketing builds relationships
The appeal of influencer marketing is its ability to connect and engage with customers to build long-term relationships. As a brand, your influencer campaigns should focus on cultivating loyal customers who make purchases instead of a one-time product sale.
You could go from a one-off campaign with an effective influencer to a consistent collaboration. Brands often start a brand ambassador program, where influencers regularly represent the brand and its products.
Investing in customers with a strong lifetime value is prudent when the economy constricts.
Influencers tell stories
Many influencers are great storytellers. They share snippets of their life on social media regularly and know how to craft a short story that resonates with their followers.
IZEA’s influencer campaign with Mayvenn featured creators who have a powerful connection with our target demographic: African-American women between the ages of 24 and 54. IZEA teamed up with creators who love to switch up their gorgeous hairstyles and have a knack for creating eye-catching content.
Now more than ever, consumers connect with the authenticity of an influencer’s story. Consumers aren’t responding to “buy me now” campaigns. Instead, they’re leaning into relatable marketing methods; and influencer marketing meets that goal.
An influencer’s authenticity often “rubs off” on a brand, giving them a competitive advantage.
During economic uncertainty, it’s normal for both brands and consumers to be more mindful of spending. While brands may need to make cuts, it’s important to consider which marketing strategies are effective. Campaigns that provide a solid ROI, help you build long-term relationships and invest in loyal, repeat customers — like influencer marketing — are sound investments during lean financial times. Get started on the best influencer marketing platform now.
Influencers:
Looking to partner with industry-leading brands? Create your free profile today.
Marketers:
The world’s biggest brands trust IZEA’s influencer marketing software and managed solutions. Find out which solution is right for you.
