The future of Influencer Marketing is offline and hyper-niche

As digital marketing costs rise and follower numbers become less meaningful, leading brands are trading traditional "product placements" for physical activations with communities of social platforms.

Last week, I talked to and interviewed an influencer from my State that is the first to launch her own NFTs. She works with travel and lifestyle, and the idea is that the public participates in her experiences with little parts and signatures. For example, if she goes to a restaurant, the person that buys the NFTs can buy this experience either, and gain a drink to be part of the club. Or, if she visits a hotel the followers will watch the stories, but maybe, can win an immersive tour or some discount to book. In fact, she is already aware of this trend and has invested around R$ 200.000,00 in her project.

Inflated by the continued popularity of TikTok, new e-commerce features, and increasingly data-driven campaigns, the creator economy is estimated to be worth more than $100 billion. However, the old handbook of "product placement" by influencers and celebrities is falling out of favor - whether it is the ever-increasing costs of digital marketing or the mistrust of consumers, according to "Vogue Business Brazil".

The idea now is to inspire local and offline communities, which are more united, and to focus on physical activations that unite people around shared interests and identities generating much more engagement. Therefore, for some luxury fashion brands, it was necessary to rethink their strategy.

Influencer marketing spending has skyrocketed from $1.7 billion (in 2016) to $16.4 billion (in 2022). Platforms such as subscription-based messaging site Discord, Patreon, and Substack encourage users to engage beyond visual media.

With more influencers than ever, targeting is necessary to give brands an opportunity for more organic targeting, according to Amy-Lee Cowey, vice president of global digital strategy at Karla Otto. The agency, which works with luxury brands such as Valentino and Givenchy, sees potential in niche influencers whose content speaks to a smaller but targeted audience. As follower count becomes less important, brands are working with talent based on their ability to tell stories in a genuine way, rather than on their fame, she says.

TikTok viral user Francis Bourgeois, who has been featured in Gucci x The North Face campaigns and has been in Gucci runway shows, may not seem like the luxury label's target audience, but his ability to tell stories and engage people in his community is "up there with the best," Cowey says. She also points to Nike's Facebook groups dedicated to specific sports, such as soccer, basketball, or running. "[The brand] works with grassroots individuals who tell their Nike story in forums to generate authentic content and organic advocacy." Brands also recognize that hyper-niche groups can get their peers talking about something much more than mega influencers. When a partnership is not focused on promoting a new collection, success cannot be measured by traditional metrics like likes or clicks. Instead, it is about tracking "incremental audience changes" to see if the brand is able to engage with new target groups of people, Cowey says.

Post-platform communities

To reduce reliance on social media apps and their changing algorithms, some creators are focusing on growing communities post-platform and enabling a direct relationship as opposed to the one-way broadcast that is typical of social media networks like Instagram and TikTok.

By working with a creator who operates a subscription model, brands can gain access to a direct focus group and strengthen ties with a captive audience that is already highly engaged. Content creators will need to balance their interests with the needs of their subscribers and potential brand partners, says Max Stein, founder, and chief executive of talent agent Brigade.

Tighter regulations and responsibilities must fall not only on the creative talent but also on the brand behind it.

Some creative talent is diversifying their revenue streams by launching their own businesses. In September 2022, TikTokers Dixie and Charli D'Amelio, whose brand partners include Prada, Valentino, and Burberry, unveiled the cross-platform company D'Amelio Brands, with plans to develop skincare products and more.

It's definitely a new era full of possibilities!