4 MIN READ

In the dynamic world of social shopping, where brand trust is plummeting faster than Justin Timberlake’s career, influencer marketing is transforming. Consumers are tired of influencers pushing products at every turn and instead find value in the voices of everyday people. These real-life "influencers-next-door" are going viral, raking in cash for themselves and the brands they casually endorse.

So, does this mean that influencer marketing is no longer effective and you would be better off spending your marketing dollars elsewhere? Absolutely not. Influencers still wield considerable power in the sales cycle—it's just that the game has changed, and not all influencers are created equal.

As you gear up to launch or tweak your influencer campaigns, keep these factors in mind to keep your strategies effective and relevant.

Your Customers’ Response to Influencers 

As with any good empathetic marketing campaign, it’s important to get a good feel for your current and aspirational customer base. A good place to start is your demographics. If you’re targeting Gen Z or Millennials, influencer marketing is definitely where you need to be investing your marketing dollars. However, if your customer base leans older, influencer marketing might not deliver the best ROI. In fact, recent data shows that only 9% of Baby Boomers follow influencers on social media.

Beyond knowing whether your target audience even values influencers’ opinions, it's critical to identify the types of influencers who resonate most with them. Are your customers drawn to influencers who share their values, or are they more attracted to those with a trending aesthetic? Size also matters to your audience. Your audience might feel like their comments and engagement are lost in the crowd of an influencer with millions of followers. On the other hand, an influencer with too small a following might lack the perceived clout to sway opinions and convert. Ultimately, tailoring your influencer marketing strategy to align with your customers' preferences and behaviors will make sure that your audience is actually being influenced. 

Realistic Budgets & Influencer Compensation

Something that many brands underestimate is just how much an effective influencer program costs. In this economy, influencers know their worth and charge accordingly, often causing a bit of sticker shock. To give you an idea, TikTok darling Alix Earle reportedly charges between $40,000 and $100,000 per post. Even for micro influencers, you can expect to pay over $1,000 for a post. While there are many influencers with more budget-friendly rates for smaller brands, it's crucial to remember that freebies or "gifts'' are not the industry standard. 

Influencing is a job just like any other profession and should be compensated accordingly. As much as I like the idea of being paid in free romance books, my cat’s vet sadly does not accept literature as payment—and the same goes for influencers. 

By strategically budgeting and establishing realistic expectations, you can make the most of your marketing dollars and create impactful campaigns. Keep in mind that an influencer marketing campaign might not immediately translate to sales, but it significantly boosts brand awareness.

Influencer Program Alternatives

When evaluating your marketing budget for an influencer program, we recommend setting aside at least $50,000 to pay influencers and plan activations. If this isn’t in the budget at the moment, investing in other marketing channels where you can still connect with content creators might be a better move for your bottom line. 

A prime example of this is TikTok Shop, the first social media shopping experience we’ve seen truly take off. Instagram has been trying their hand at it for years, but has yet to match the record-setting success of TikTok Shop. To give you an idea of just how much this platform has taken off, Americans alone spend an astounding $7 million per day—all without ever leaving the app 

TikTok Shop is particularly appealing to budget-conscious Gen Z customers. While businesses like SHEIN and Temu make up the bulk of sales on the app, brands with more prestige, like Tarte Cosmetics, are also finding success with viral products.  Aside from getting great deals, TikTok users shop on the platform because recommendations frequently come from small creators who genuinely love the products they share. The barrier to entry for linking to TikTok Shop is also low, with TikTok requiring users to have only 1,000 followers to sign up.

Of course, if you’re not an ecommerce brand, TikTok Shop won’t make sense for your brand. There are plenty of influencer-adjacent programs you can tap into. Consider prioritizing user-generated content (UGC) and getting permission from fans to share their content across your social media. Or, if you have more bandwidth, tap into the benefits of an affiliate program. This is especially useful if content creators are already discussing your brand. You can provide them with personal discount codes to drive sales while they earn commissions—a win-win without substantial upfront costs.

While the landscape of influencer marketing is evolving, it continues to be an essential marketing tool. By understanding your audience's preferences, setting realistic budgets, and exploring alternative creator-connection strategies, you can craft campaigns that resonate and drive results. As any good therapist will tell you: Embrace the change and your marketing efforts will not just survive, but thrive.

Have questions about getting started with your influencer program? Send us a note over on our contact page.