(Pt. 1 of the series)
Corona Virus has impacted every single person and every industry in some type of way. A lot of you are wondering: “What is the state of influencer marketing due to Coronavirus?”
Influencer Marketing has definitely had to pivot, BUT it is actually thriving due to Covid-19.
1. More online shopping = More need for influencers
Ecommerce is 50% higher than the same period in 2019.
More people are shopping online. Obviously, with the lockdowns and store closings, people have been forced to turn to the internet to purchase their necessities and anything else.
Some of these people were not online shoppers before COVID-19 hit. Why is that a good thing for ecommerce and the influencer marketing industry?
These people will most likely continue to shop online, after COVID-19 lockdowns are lifted.
- A lot of people are still very scared of the virus and claim they will continue to stay home as much as possible even after everything is “back to normal”
- Buyer behaviors have changed and it will remain a “habit” even after everything is back to “normal”
With a rise in ecommerce and online shopping, there will also be a rise in the need for more great influencers to drive sales in an authentic way.
If you are a brick and mortar business, there is no better time than now to get your business online.
2. Brands opt for Influencers over other forms of advertsing
Brands found that traditional advertising on their own accounts (like Facebook ads) put them at risk of being tone deaf and insensitive. Instead they are looking to influencers to communicate directly with consumers.
Imagine if when COVID-19 first struck and brands were running ads saying “Hey, I know we’re in a lockdown and people are scared and unsure about the future, but buy our stuff.” (okay, no one would ever run an ad like that, but you get my point). It just wouldn’t be a good look.
- Influencers have a loyal following with a mutual trust and understanding.
- Influencers have the ability to communicate in a different and appropriate way for brands.
- Influencers offer a 2nd party referral. That holds more weight, seems less like an “Advertisement”, and allows the brand to have a buffer between their message and themselves.
Cowen & Co estimate that the two tech giants Facebook and Google, will see a loss of $44 Billion due to Covid-19. A lot of brands have pulled back on advertising, but it is expected to pick back up by 2021.
3. RewardStyle (Liketoknow.it) Advertisers have come back to the platform offering even higher commissions to Influencers!
In a private partner call with RewardStyle, we learned that when this all started going down (March 2020) a lot of brands pulled out of their campaigns temporarily. Meaning, influencers could no longer earn commissions from affiliate links or the Liketoknow.it app. BUT that quickly changed…
They quickly saw that influencers were a HUGE benefit, and without them, sales were plummeting. Most of them came back offering even higher commissions than before! “Bloomingdale’s has reactivated their program as of yesterday, 5/3, and is active at up to 12% commission!” Whereas prior it was as high as 10%.
What does this show us?
Brands are seeing influencers as EVEN MORE VALUABLE than prior to Covid-19!!
#4 Liketoknow.it sessions were up 75% – Outpacing black friday usage and sales
Liketoknow.it is one of the largest influencer platforms, which means they have a lot of valuable data!
A lot of people felt that sales online would go down due to Covid-19, but the fact that they were higher than the largest shopping day lof the years says a lot!
Wondering how to pivot to capitalize on this increase? Check out the follow up article “How to Successfully Pivot & Sell as an Influencer or Affiliate During Covid-19“
Influencer Marketing is thriving and will see an even bigger growth jump this year than expected. Each year it grows exponentially, and I am really eager to see what the results are for 2020.
- Overall, the increase in ecommerce spending will remain higher than prior to covid-19.
- The need + desire to work with influencers will also remain higher and positive once everything is back to “normal”.
- Influencers are now being seen as much more valuable to brands! YAY!
Check out part 2 of this topic to learn how to pivot your messaging and what is selling right now HERE.
Check out part 3 of this topic to learn how to pitch brands during covid-19 HERE.