Is the decline of the influencer upon us? What’s taking its place?

These days, everyone seems to love an article proclaiming X strategy is dead when in reality we all know that’s far from the truth. There is always more to the story than a click-bait title would suggest. Case in point, the influencer market. As a booming market, projected to reach 33 billion USD in 2025, it couldn’t possibly be in decline. Or could it? While it does seem safe to say that people are starting to reach their limits with social media, and more specifically, influencers, we’re not sure how deep the skepticism runs. 

It used to be that influencers were a reliable source of information for consumers, they supported brands they loved, endorsed the people they believed in, and genuinely connected with their audience. Now, however, with influencers amassing massive followings, it’s more difficult to believe they are seeking connection or looking out for their audience. They have hit the realm of untouchable celebrity. So, is the influencer market declining or are we just starting to get sick of it? And, if so, what’s going to take its place, and how can you as a marketer prepare for the evolution of the influencer market?

The current state of the influencer market

For a market that is projected to be worth 33 billion USD by the end of 2025, it seems crazy to say that its influence is declining. In the Influencer Marketing Report by Sprout Social, they reported that 86% of consumers will make a purchase inspired by an influencer each year, if not more often. Long story very short, the influencer market is not declining in monetary value, rather consumer sentiment and intention is shifting, which will mean the influencer market is going to evolve. At this stage, with so much money and influence flying around, it would be remiss to cut an influencer initiative from your marketing strategy, especially if it brings in high ROI or meets your specific goals. Rather, it might be time to reevaluate the impact, reach, and ROI of your influencer marketing strategy and make some changes to address the shifting market. 

Consumers are moving towards a higher demand for user-generated content which most likely stems from a growing skepticism around brand promotions with influencers. In fact consumers report that seeing too many sponsored posts from influencers is likely to make them turn away from that influencer. This may be a reflection of exhaustion with social media and influencers in general, or it may be a desire for more transparent and authentic communications. Either way, as sentiment shifts, it will be important to drive more wholesome, authentic interactions if you are working with influencers. 

If the market is still growing, why shift? 

For one, it is becoming costly to engage influencers consistently and rank in the algorithms due to an inflation of sponsorship rates. With higher rates across the board, companies with smaller budgets are less likely to be able to afford the hefty price tag that comes with hiring the influencers that will get them the greatest return. One way to lower costs is to work with smaller influencers, generally in the micro to nano categories as they will charge less. You can also see about long-term engagements as influencers are more likely to lower prices if they know you will be working together for a while, rather than just an ad hoc engagement. Longer engagements make the initial setup investment from both sides more worthwhile. 

Then, there is the issue of market saturation. Everyone everywhere wants to be an influencer, and at this stage, it’s not uncommon for people to exclaim “influencers in the wild” on a daily basis while traveling or eating out. Market saturation is going to lead to consumer fatigue and a growing body of consumers and companies looking for more genuine connections.

Customer fatigue is somewhat related to market saturation as more and more consumers become wary of buying products that are sponsored from influencers. The market starts to feel more contrived and less like the influencer actually supports or uses the brand sponsoring them. One way to get around this is by offering discounts or having the influencer talk about the brand outside of the sponsorships as well. 

What’s going to be the most important for successful influencer campaigns moving forward? 

Since the market is evolving, your marketing strategy should as well. When we look at how the influencer market is changing and what is becoming more important to consumers, it makes sense to make adjustments in a few areas. Here are some ideas to keep your influencer marketing strategy relevant:

• Experiential events and connection: Take your interactions off social media and into the real world. Summer is a great time to get people together and build connections with your audience. There are countless things going on in different communities, and the more you engage in person with people, the more they may engage on digital platforms as well.  
• Micro and nano influencers: Seek out influencers in your niche market or in your geographical location and keep it small. Try to work with people that really value your brand and want to go beyond just a basic sponsorship to build a lasting relationship. It will be more difficult to have this type of interaction with a large influencer because they receive so many requests and have higher costs. 
• Video and live streaming: This shouldn’t be a surprise at this stage, but video and live streaming are going to deliver the greatest ROI. Live streaming is great for Q&A sessions, product showcases, interviews and chats, and more, depending on your audience and the platform.
• AI tools to automate – One of the most common challenges to overcome in any business is a lack of time or resources. AI can be a very useful tool to help automate and streamline tasks that need to get done but shouldn’t consume your team’s valuable time. Strategic AI tool adoption can drive better outcomes and give your team plenty of time to focus on creating innovative, engaging, and authentic content that moves the needle. 

While the decline of the influencer certainly isn’t going to happen today, it does make sense to start evolving your influencer strategy to reflect the desires and needs of your audience. To drive real value, aim for more authentic, localized content from smaller influencers that resonate with your particular audience, not just a big name sponsorship because that’s the cool thing to do.