The author has shared a Podcast.You will need to accept and consent to the use of cookies and similar technologies by our third-party partners (including: YouTube, Instagram or Twitter), in order to view embedded content in this article and others you may visit in future.
Subscribe to the BoF Podcast here.
Background
The influencer landscape has shifted dramatically over the last decade. While the image of influencers posting flawless selfies on exotic, brand-sponsored trips still resonates, the reality has become far more complex. Influencers now host live shoppable streams, publish newsletters on Substack and engage in intimate group chats. Their goal is not just to build a following and wait for brands to come calling, but to establish multiple sources of income through affiliate links, brand deals, and subscription models.
“Influencers and creators have realised that they need to diversify and be on multiple platforms. They need to be connecting with their followers in multiple ways and have a deeper relationship with their followers,” says Diana Pearl, senior news and features editor. “Even five years ago, there were people who didn’t really take this industry very seriously and didn’t realise the difference they could make for their brand. Now it is impossible to ignore.”
Key Insights
- In the evolving digital landscape, influencers and creators are no longer relying on a single platform for success. Diversifying their presence across multiple platforms, from Instagram to Substack, is key. Pearl emphasises, “It’s really all just about diversification. At the end of the day it’s about not relying so much on one source, not having to rely so much on Instagram, the algorithm, affiliate links and brand deals.”
- While macro-influencers may reach a broader audience, smaller influencers often have more engaged, loyal followers. “Once you get so big and you’ve got millions and millions of followers, you can’t have that type of relationship with 5 million people the way you can with 100,000,” says Pearl.
- The rivalry between influencer marketing platforms LTK and ShopMy highlights a shift in the landscape, with ShopMy offering influencers more control and transparency. Pearl explains that while LTK encourages creators to centralise their content on its app, ShopMy allows influencers to share across platforms. Influencers, Pearl says, approach it from the perspective of, “We know our audience, we know what content resonates with them. But if you hand us this really detailed brief and expect us to act like a traditional ad agency and create a commercial that hits every single box, it’s just not going to come off as authentic.”
- The industry is becoming more nuanced, with clear distinctions emerging between influencers and creators. While creators focus on producing unique, engaging content, influencers drive sales and hold sway over purchasing decisions. Influence remains the key asset in the industry, one that can be translated across platforms like Instagram, TikTok, or Substack. “At the end of the day, the most valuable commodity in this business is influence,” Pearl explains.
- By understanding their goals and selecting the right partner to meet them, brands can optimise the impact of their influencer campaigns and better connect with their target audiences. “Brands just need to be smart about what are your goals, what’s the right type of person to achieve these goals or right type of partner and who should we go with from there?” says Pearl.
Additional Resources
- The Widening Gap Between Influencers and Creators. The two terms are used interchangeably to describe those who make a living sharing content online. But doing so may ignore the fact that having sway is often the key to success in the sector.
- The Fight for Influencer Marketing Dollars Heats Up. ShopMy, a four-year-old influencer monetisation platform, has attracted over 50,000 creators, making inroads in a space long ruled by incumbent player LTK. Tensions rose to new heights this week after LTK sued ShopMy for false advertising.
- What’s Driving the Influencer Subscription Boom. As social media users tune out ads, content creators are putting more of their content behind a paywall. The hope is they can build a deeper connection with their followers – and make more money, too.
