According to pre-pandemic forecasts, influencer marketing spends were expected to hit $15 billion in 2022, However, COVID-19 has completely turned the tables and the marketing and advertising industry is facing severe budget cuts. Going by media coverage, it seems like the recession is just lurking around the corner.
“When times are good, you should advertise, when times are bad, you must advertise.”
Obviously, influencer marketing spends will drastically reduce, but the question is:
Can influencer marketing survive this downturn? Looks like a big YES. Let us understand how.
Influencers are Recession-Proof
Micro-Communities: When advertisement spends are tight, ROI becomes even more important. The intrinsic strength of influencers is their direct connection with niche audiences. This gives brands an opportunity to directly connect with engaged customers. Hyper-targeted advertisements through the right influencer can yield better ROIs.
Content that resonates: As more and more customers demand authentic content, influencers who understand this space rather well create content that resonates with their target audience, be it, gen z, gen x, or millennials. This definitely means great ROI on marketing spends. Influencers connect with potential clients, boost customer loyalty, and proliferate customer lifetime value at substantially less budgets.
Great rapport: Influencers have a very good rapport with their followers and customers look to influencers as a voice of authority, and influencers can very clearly deliver value.
Power of Persuasion: During the recession, consumers will hold back on every dollar they spend. Before making a purchase decision, they are more likely to be guided by product reviews, recommendations, and referrals by influencers they trust. Also, there is an emotional component that binds followers and influencers; the sense of belonging. This influence could be a great asset for a brand leveraging influencer marketing.
During a recession when marketing spends are at the lowest and every dollar counts, influencer marketing helps generate more leads and conversions, increase brand recognition, and brings more credibility to a brand at a fraction of the cost of any other marketing tool.
Yes, influencer marketing can and will survive a recession.