Brands working with influencers fall by 37% as budget tightens during COVID-19 crisis

New Ideas in MarketingEssential news for marketers, summarised by YouGov
July 06, 2020, 3:14 PM UTC

Socialbaker studied the pandemic’s effect on the influencer industry over the last three months.

The report found that with marketing budgets tightening due to uncertainty during the crisis, brands are reducing their influencer partnerships. The number of companies working with influencers has dipped by 37%, while the efficiency of influencer marketing has dropped by 41%.

Brands are increasingly valuing nano and micro-influencers – which provide better ROI and lower costs - over highly-priced celebrity influencers. The number of influencers cooperating with businesses that used “#ad” decreased by 30% in April 2020, as compared to April last year.

Though overall, the efficiency of influencer marketing went down, specific sectors like Healthcare (4.2X) and Finance (3.9X) saw better efficiency scores. Socialbakers’ CEO Yuval Ben-Itzhak says despite uncertainty, brands are still investing in influencer marketing.

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