The influencer marketing landscape is undergoing a significant transformation, largely driven by the rise of short-form content platforms, particularly TikTok. This shift has resulted in the "TikTok-ification" of social media, catalysing the rapid expansion of the influencer marketplace and creator economy. According to insights gathered from various influencer marketing executives by Digiday, the focus among marketers is increasingly turning towards smaller, niche creators who tend to offer a better return on investment.
Sophie Crowther, global talent partnerships director at Billion Dollar Boy, remarked, “Attention is in new formats, new creators that are tapping into something completely brand new, basically.” This evolution in content creation is reshaping how brands approach influencer partnerships. The traditional model of relying on general lifestyle influencers is being challenged as advertisers look for more specialised voices.
Supporting this trend, an analysis from Sway Group indicates a considerable lean towards niche influencers, with 60% of client proposals in 2023 requesting these creators and an anticipated increase to 75% in 2024. Danielle Wiley, the founder of Sway Group, explained, “Certainly, the interest in really niche areas is growing tremendously.” This strategic shift allows brands to target specific markets more effectively; for instance, a kids' snack brand might seek to collaborate with content creators who focus primarily on packed lunches, as opposed to those whose content spans various categories.
The influencer ecosystem may be reaching saturation, with a noticeable demand for distinctiveness among influencers. Crowther pointed out that agencies are increasingly pursuing “hyper-specific” creators in an effort to uncover untapped opportunities, signifying a shift from broad marketing strategies to more targeted engagements.
Data from HypeAuditor reinforces this strategic focus, revealing that nano-influencers exhibit the highest engagement rates at 2.53%, outpacing mega influencers, who typically see only 0.92%. Gregory Curtis Jr., director of influencer strategy at Empower Media, noted, “The spend is absolutely skewing far more towards the nano and the micro influencer over the follower count just because of the genuine connection they have with their audiences.”
In practice, this means that advertising budgets are increasingly favouring smaller influencers. For example, Curtis Jr. shared that a recent campaign for a clothing brand allocated $100,000 to six mid-tier influencers, while a further $150,000 was spent on 30 nano and micro influencers, suggesting a strategic pivot toward deeper audience engagement. Early results indicated promising interaction levels, prompting considerations for future budget allocations.
As agencies look ahead to 2025, expectations are that the emphasis on niche influencers will persist. The driving forces behind this trend include the mounting pressure on marketers to align their strategies with tangible business goals and the need for CMOs to demonstrate effective use of marketing budgets. Executives predict that as niche content continues to gain traction among engaged audiences, ad spend will follow suit.
Despite the focused direction of influencer marketing, general lifestyle influencers are not disappearing entirely. They still hold appeal for brands operating within broader markets, such as consumer packaged goods. However, as Crowther cautioned, “if you just do the same thing, it will be tricky to sustain an audience, sustain brand deals and sustain engagement.” This underscores the necessity for all types of creators to evolve alongside the shifting landscapes of their respective niches.
Source: Noah Wire Services