The Creator Economy is set to reach $24 billion by year’s end. With such stratospheric growth, you might be wondering how to enter this market and what the barriers to entry are, specifically when it comes to budget and ROI. The perception that influencer marketing is limited to “brand deal or bust” or pay-per-post models is changing. Here are three trends that marketers are capitalizing on right now:
1. Creators as Multifaceted Entrepreneurs
Gone are the days when influencers relied solely on brand deals for income. Today’s successful creators are diversifying their revenue streams. They’re leveraging subscriptions and utilizing affiliate commissions as both passive and active income sources. This diversification not only sustains their income but also enhances their credibility to brands.
2. Leveraging Affiliate Programs for Continuous Revenue
Affiliate marketing is growing rapidly, expected to hit $36.9 billion by 2030. Influencers see affiliate commissions as a key income source, promoting products and earning from sales. Furthermore, creators leverage key promotional periods, such as Amazon Prime Day, to further boost their income. During these sales events, they tend to increase their usage of affiliate links, see a boost in their follower count and experience higher engagement. This results in a halo effect, where their more traditional counterparts (shopping publishers) will also see a rise in incrementality. Creating engaging content takes effort, so they often require flat fees or a mix of fees and commissions to cover their work.
Incrementality scores for major shopping publishers increased by 27%, on average, from the weeks before the Amazon Spring sale to the Spring sale itself.
3. Navigating the Influencer Ecosystem with Aggregators
Aggregators like LTK, Mavely, Magiclinks,Virality Boost, InfluenceLogic, PartnerMatic, and Collective Voice enable brands to distribute standard offers to a broader group of influencers. These platforms help brands target specific creators for special promotions. Platforms, such as MagicLinks, have proven to bring incremental value to programs. Success on these platforms depends on investment, with bigger budgets and product gifts typically yielding better results. Advertisers that put the greatest effort into collaborating with their influencer partners saw the highest incrementality value add.
In the data below, you can see the overall Incrementality scores, as well as Funnel position (where the influencer interacted with the customer) and Customer Acquisition (where the influencer was able to bring on new customers). As expected, the influencers shine when it comes to making brand introductions.
How PartnerCentric Can Help:
At PartnerCentric, we understand the complexities of the evolving influencer marketing landscape. Our expertise can help you devise a strategy that aligns with the right creators for your program. We offer comprehensive services, including:
Devising Multifaceted Strategies: Tailoring marketing plans to encompass various aspects of influencer engagement, from coordinating gifting campaigns to collaborating with creators to announce product launches.
Individual Influencer Recruitment: Identifying and engaging with specific creators whose audience and expertise align with your brand’s goals, ensuring impactful and authentic collaborations.
Managing Influencer Network Onboarding and Optimization: Identifying the best influencer sub-network(s) for your needs and streamlining the integration of these networks into your affiliate program, ensuring their maximum effectiveness.
Before getting started with influencer marketing…
Ask Yourself:
What goals do I wish to achieve with influencers? Identifying your KPIs will help direct which creators, subnetworks or platforms to work with.
What is my budget? Can I give influencers products to trial?
Do I have a product/service or campaign in mind? What is my ROI timeline?
Ask Your Account Manager:
With a limited budget, what strategies and tactics do you recommend to help my brand test influencer marketing?
Is it best to work with an influencer aggregator, individual creators or both?
How can PartnerCentric support my internal influencer marketing team?
Do any of the Influencer Marketing Subnetworks or Partners work on CPA only?
By partnering with us, you can leverage our deep industry knowledge and network to stay ahead in the competitive world of influencer marketing. Let us help you navigate this dynamic space with confidence and success.
