Why the influencer PR gifting model is in for a rude awakening

Regardless of what TikTok algorithm you’re on, you’ve likely come across an “influencer PR haul” at some point. For those who have been spared an insane amount of jealousy from never witnessing a PR haul, a PR gifting exchange essentially means brands will reach out to selected creators with a “no strings attached” product offering, and pray for a positive social media product review. This typically represents the first step of a longer term partnership or awareness campaign, but there’s?growing tension between brands, creators and consumers?as performance expectations increase and consumer sentiment decays.

As someone on both the receiving side (a micro-creator) and as a full-time marketer in the creator economy, I can confidently say?the influencer PR gifting model is in for a rude awakening if brands don’t adapt business goals and expectations to the changing needs of creators and consumers.

The lay of the land:

• The influencer market is maturing:?Like any other legitimate advertising channel, brands reach a point where they “grow out” of brand awareness and must prioritize performance marketing. We’ve seen this with TV - brands favoring hyper-targeted ad spots instead of a reach play, like a Super Bowl spot, in order to meet changing business KPIs. This is why you’ve likely heard brands are prioritizing working with niche creators with an engaged audience, instead of a mega-creator with millions of eyeballs following them, but likely not truly interacting with their content.
• Consumers browse and buy:?More consumers than ever are shopping directly from social platforms, via Meta Shops, TikTok Shopping Ads, and link-in-bio accessibility to platforms like? nate? . Consumers can watch their favorite creator talk about a product and buy it within a few taps. The ease and abundance of creator product reviews has led to?young consumers swapping Google for TikTok when searching for inspiration.
• Competition and compensation are compromising authenticity: According to?initial findings from a survey of 1,000 U.S. adults?commissioned by The Desire Company, a vast majority of consumers (87%) say it is likely that influencers don't even use the products they advertise and, furthermore, only 1 in 10 (11%) believe that a social media influencer with millions of followers is a trustworthy source of information. The nature of a PR haul or unboxing - one that promotes excessive consumption (and exaggerated praise) - further drives this sentiment. After all, if a creator is expected to promote a new bottle of perfume each week, their loyal audience will quickly catch on that each bottle can’t be their “fav scent ever.”

So where does that leave brands with shrinking marketing budgets? Their performance needs have grown (i.e needing to drive purchase intent) yet their opportunities to do so authentically and cost-effectively have shrunken.

This is why so many brands tend to engage in a product gifting campaign, aka gifted PR like the hauls you’ve seen online. It tends to be low budget, wholesale products. However, with only product compensation and no additional incentive, most creators aren’t willing to put in paid-level effort, and they shouldn't be expected to.

However, with only product compensation and no additional incentive, most creators aren’t willing to put in paid-level effort, and they shouldn't be expected to.

The result: less enthusiastic product reviews, not linking to the product to help drive sales, and a less meaningful and authentic viewing experience for consumers. These factors actually lead to a negative association of the brand (how counterproductive!) and further attribute to the?“out of touch” view people have of influencer marketing.

Not to mention, creators can oftentimes be inundated with gifting inquiries with tight review turnarounds, are told the product can't be donated or gifted(?!), and not provided with an opportunity to earn commission, so therefore providing little incentive to drive sales.

One of the most critical factors contributing to the overflow of gifts for select creators, is the lack of diversity, equity and inclusion considerations taken by brands and agencies. This merits a much larger conversation, but many creators are acknowledging their privilege and excess often unfortunately represents a lack of opportunity for creators of color.

For all these reasons above, it’s no wonder PR gifting has become associated with waste, but?creators shouldn’t be blamed.

For all these reasons above, it’s no wonder PR gifting has become associated with waste, but?creators shouldn’t be blamed.

Influencer agency Fohr shared a?“Gifting Guide: 8 questions to ask before starting a campaign.”?Their report outlines precautions that brands should take before considering engaging in a gifting campaign, such as considering the cost value of the product in relation to the expected content from the creator.

Other considerations include additional perks you can provide the creator. “For example: if they have a smaller following, repost them on your brand’s channel with a tag, or write an article on your brand’s popular blog, which might incentivize a creator for exposure.”

I highly encourage?checking out their guide?if you’re a brand considering gifting campaigns.

So what do you do if you’re a brand who needs to drive performance on a budget, without the technical infrastructure to build a commission/affiliate model, and your brand isn’t available to link on legacy platforms like Amazon or LTK?

nate provides a solution through a no-integration-needed gifting model, currently in beta with a few brands. Brands can choose to send products to prospective creators via nate’s gift feature. From there, the creator can consent to receive the gift and input their address directly into the nate gift link, avoiding tedious back-and-forth emailing. For brands without a target demo in mind, our team has provided lists of creators who already genuinely love the brand (i.e have curated and shared nate Lists featuring their products). This ensures an authentic relationship from the get-go.

The final, key piece of this gifting model are the perks and flexibility of it: We encourage brands to not require posting. Instead, they provide a perk for posting:?enter nate’s rewards program.?If the creator recipient genuinely loves the product and wants to share with their community, they can add the product to a nate List, and easily link it on social media.?nate Lists are automatically commission-eligible once shared, earning 5% cashback from any purchase, or any brand.

For brands sending multiple products or wanting to engage in a longer term partnership with a creator, this is perfect for increasing return visits to previously gifted products. Plus, when interested consumers follow a List, they get built-in notifications when more products are added to the List, and the creator earns rewards for those list follows, as part of the?Creator Program milestones.

We’ve seen creators already adapt to this, creating lists specifically for PR, such as creator ClothesAreFriends’ “PR I received and loved”?nate List. Hundreds of consumers have followed it, and in just 2 months, have saved items to their own shopping lists 1,760+ times.

Hundreds of consumers have followed [their PR nate List], and in just 2 months, have saved items to their own shopping lists 1,700+ times.

With Black Friday/Cyber Monday creeping around the corner, and heightened demand to relieve product surplus from supply chain issues, we should anticipate the surge of PR gifting over the next few months to continue. However, that doesn’t mean it will all go to waste.

If you’re a brand curious how to make the most of your campaigns and ensure your products go from inspiration to gift-under-the-tree, let’s chat!

Shoot me a message on LinkedIn.

-Mary Grace, Head of Creator Program at nate

Check out my shopping profile on nate.