[Editor’s Note: In a conversation with PRNEWS about influencer marketing strategies, Cristy Garcia, CMO at Impact.com, discusses how can brands and influencers can get the most out of their partnerships, where misalignment between the two occurs, and recent research findings conducted on the brand-influencer relationship.]
PRNEWS: The creator economy has massively expanded in recent years. How do you see it playing out in 2024?
Cristy Garcia: Today’s consumers no longer trust traditional advertising and have stopped listening to the insurmountable barrage of advertising they are exposed to in their daily lives. Instead, they're reading reviews and searching social media where they can see the product and hear what people they trust and respect have to say about it.
Put simply, influencers are the trusted voices they’ve come to rely on for recommendations when looking to buy products and services. According to a recent influencer marketing report, nearly half of all consumers make daily, weekly or monthly purchases due to influencer posts. What’s more, 30% trust influencers more today than they did six months ago.
As a result, both brands and creators are looking to make the most of the creator economy this year. Recent impact.com research reveals that 76% of brands plan to increase their influencer marketing programs in 2024, while 86% of creators want to work with more brands. Overall, the creator economy is expected to double to $480 billion within the next five years and could reach half a trillion by 2027.
PRNEWS: How can brands and creators get the most out of their influencer partnerships?
CG: First and foremost, brands need to treat influencers as equals, as true partners, rather than simply a conduit to their target audiences. Brands need to recognize their value and respect their decisions and creative output. Not only will this foster a better relationship, but it will ultimately lead to better performance. Our research shows that 63% of consumers repeatedly purchase based on an influencer's recommendation or review.
Second, regarding product reviews, brands must allow creators to create genuine, off-the-cuff content rather than rigidly following a script. According to our research, 56% of consumers perceive it as most authentic when creators share their first-hand experience with a product and demonstrate how they use it. For instance, instead of rushing to review a shampoo they’ve never actually tried, creators should take a month or two to thoroughly test it and show the results while building anticipation with followers. This way, the review will feel far more authentic and can help build sustained brand awareness and loyalty over time.
Thirdly, creators need to have a deep understanding of a brand’s goals, key metrics and parameters for success from the outset to ensure both parties can achieve a successful, long-term partnership. This alignment means creators become invested in achieving the same outcomes, so brands need to be committed to sharing a full campaign brief setting out their expectations.
PRNEWS: What role does compensation play in all of this?
CG: Compensation plays a key role in aligning creators and brands. In fact, 43% of creators are ready to sever ties with a brand if payment falls below their expectations. Brands must devise strong compensation strategies that both underpin campaign objectives and motivate creators to deliver better outcomes. Interestingly, 33% of creators are more open to a performance-based commission or bonus when working with brands with whom they have an established relationship, versus 18% of creators embarking on new partnerships.
PRNEWS: Where do you see misalignment in the relationship?
CG: Misalignment happens most when choosing a partnership—when brands tend to prioritize the quality of content, while creators prioritize transparency—and when ending a partnership. A lack of communication can leave creators feeling overwhelmed, missing deadlines, and sometimes even ghosting. As a result, the brand may end the partnership due to these missed deadlines and an overall perception of poor communication. This can be easily avoided by establishing campaign expectations between brands and creators clearly and fully at the outset of the relationship.
PRNEWS: What does success look like today?
CG: The great thing about influencer marketing is that any type of brand across any sector, from startups to household names, can benefit by leveraging the creator economy. Influencer marketing thrives when brands, creators and consumers are aligned. Understanding each party’s perspective, priorities and preferences is crucial for building successful partnerships and driving campaign success. By fostering transparency, trust and collaboration, brands can harness the power of influencer marketing to connect with consumers authentically and drive business growth. And these opportunities will only keep growing over the next few years.
[Interested in learning more about Influencer Marketing for PR? Join PRNEWS on Oct. 16.]