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Oct 21 The Effectiveness of Influencer Marketing in 2020

How the New Normal Has Impacted Influencer Marketing

In the past, brands have struggled to measure influencer marketing ROI which caused many to hesitate to allocate marketing budgets. Things have changed. Valassis, the leader in marketing technology, released their 2020 Valassis Consumer Intel Report, which estimates that the influencer marketing industry will grow by $15 billion by 2022. And now more than ever, there are more quantifiable statistics showing the positive impact of influencer marketing in marketing strategies. The global pandemic has changed consumer behavior, and influencer marketing is positioned to be a high impact marketing tool for brands in these uncertain times.

The effectiveness of influencer marketing in 2020

Covid-19 Impact on Influencer Marketing

The Valassis study shows that brands have begun allocating larger budgets for influencer marketing this year as more consumers are making purchases online due to Covid-19. Since March, 21% of consumers in the U.S. were motivated by an influencer to purchase something for the first time. With quarantine decreasing the amount of time people spend with in-person shopping, they're still spending, just online. This surge in ecommerce presents a unique opportunity for brands to find new ways to engage consumers. Not only have consumers shifted their typical spending to ecommerce, Valassis reports consumers are increasing their unplanned purchases, with 35% making impulse purchases of something they saw on social media.

 

Social Justice Impact on Influencer Marketing

The pandemic and social unrest of 2020 has also prompted consumers to examine the values of the brands that they choose to support and how closely they match their own. Valassis' report states 71% of consumers want to buy from brands they trust. Once the pandemic hit, 84% of consumers said they appreciated brands who adjusted their message to be helpful during the stressful time.

Consumers are also more likely to unfollow influencers if their personal values and ethical beliefs do not align with their own. This is particularly important with gaining customer loyalty through shared beliefs.

But it doesn’t stop there. The events of 2020 have put a spotlight on brands and the way they use influencers. According to Valassis, 32% of those surveyed have purchased more products/services from businesses that partner with a more diverse set of influencers. Additionally, 36% of consumers now report that this year they started following influencers with more diverse racial and cultural backgrounds.

 

Carusele Influencer Marketing Capabilities

 

What Does This Mean for Brands

The data from the Valassis is just one study among many that's proven how influencer marketing is continuously evolving and more effective than ever... when done properly. As consumer behavior continues to shift, the traditional playbook won't work anymore, and it's on your brand to constantly revisit your strategy to ensure it's effectiveness.

As for right now, we can see from the data above that as people spend more time on their devices, they're purchase behaviors are shifting and they're more likely to make purchases online based on social content or an influencer recommendation. This behavior presents a new opportunity for brands to strengthen their ecommerce presences and find ways to partner with authentic influencers in a meaningful way.

We also see that new is not the time to sit back and be silent. There's a new opportunity for brands to take a stance on social issues to create meaningful campaigns that not only help with growing awareness but also create a positive brand image. Partnering with like-minded influencers can help strengthen this message and show your followers that your words hold true.

At Carusele, we do the heavy lifting and hand-select partners to make sure their audience, background, and content is an appropriate fit for the brand partnership. If you'd like help sourcing the right influencers or revamping your influencer strategy, contact our team today. Otherwise, keep yourself up-to-date on the latest happenings in the industry by subscribing to our newsletter, The Spin, below.

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