Influencer marketing is still one of your most effective marketing tools. In many ways, influencer marketing has become the industry standard for brands ranging from beauty to gaming, cryptocurrency, food and beverage, and even SAAS.
However, with increasing demands and rapid evolution, there will inevitably be changes in how it is carried out. This shouldn’t surprise anyone who has spent time dabbling in it. And succeeding!
So much so that most marketers intend to increase their influencer marketing budgets this year.
As the popularity, demand, and marketing spend for influencer marketing grows, keep an eye on these influencer marketing trends for 2023 so you can focus your attention and ad dollars in the right places.
Trend 1: The Rise Of Meta And The Metaverse
Despite a somewhat tumultuous 2022, Meta has ambitious plans for 2023. Their goal is to continue to push the boundaries of what is possible with immersive technology and make it more accessible to a broader audience. According to SuperCrypto news, Meta plans to continue its investments in the metaverse this year. This includes developing new hardware and software solutions, more advanced VR and AR headsets, and expanding their content offerings with new games, apps, and experiences.
Marketers expect that Meta’s advancements in VR and AR technology will significantly impact influencer marketing in 2023. With the ability to create more immersive and interactive experiences, influencers can engage with their audience in new and exciting ways.
Additionally, some believe that the future of the internet should be decentralized and built on blockchain. Many are testing NFTs for digital asset ownership and decentralized autonomous organizations (DAOs) to bring digital democracy to virtual worlds. Financial experts like McKinsey predict the metaverse to add $5 trillion to the global economy by 2030. Gaming as an industry is a big propeller for this trend and will continue in the forthcoming years. This makes 2023 a crucial year for determining the direction of its development and trajectory.
Trend 2: Livestream Shopping
Live shopping is growing in popularity and will continue its trend in 2023 and beyond.
According to Coresight Research, live shopping events may generate $35 billion in sales by 2024. Platforms such as Twitch and YouTube have already made their mark. Facebook, TikTok, and Instagram are implementing live-streaming tools and partnerships with influencers to take advantage of this trend. For instance, TikTok’s live shopping feature allows users to buy products while watching live streams without leaving the app. This creates a smooth and immersive shopping experience.
Additionally, studies show that middle-tier influencers attract 40% of their viewership through live streams, four times more than mega-influencers.
The rise of live streaming has made it the third most popular content type worldwide. This affirms how much marketers rely on it to connect the digital and physical shopping experience.
Also, marketers find that live-stream shopping is the latest trend in all sectors, with influencers playing a critical role in product discovery and purchase. They capitalize on influencers’ existing social media following to talk about topics that interest shoppers.
Figure 1: Influencer-led live shopping will continue in 2023. Source: BBC
Trend 3: Influencers Collaborating With B2B Brands
In 2023, B2B influencers will play an increasingly important role in marketing. B2B influencers are experts in their field with a strong reputation within their industry. It makes them valuable assets to brands looking for an expert’s take on their products. B2B influencers can also provide valuable insights and feedback on products and services, helping to improve the customer experience. They can help brands drive sales by orienting potential customers, establishing thought leadership, and providing valuable testimonials and case studies. LinkedIn and YouTube creators, in particular, will play a vital role in this influencer marketing segment.
Overall, influencer marketing will be an invaluable asset for B2B brands as they can provide targeted and credible reach to the right audience and increase their ROI.
Trend 4: New Revenue Streams For Influencers
As we progress with our influencer marketing predictions for 2023, we are seeing a convergence between influencer and creator culture. There is a definitive increase in the number of specialized skills, such as how live streaming and gaming are now viable career options.
Additionally, many established creators are opting to move away from multiple brand deals and instead are developing their legacy projects with brands. In 2023, creators will have access to a wider range of tools and options to monetize their content, such as influencer marketing, revenue share, and syndication with platforms like TikTok and Instagram, as well as personal outlets like eCommerce and social commerce.
Consequently, brands wanting to engage influencers must manage them like they would manage customers and build a creator experience that incentivizes retention. We need to move towards mutually winning collaborations between brands and influencers.
Trend 5: Nano-influencers To Overtake Micro-Influencers
In 2023, more companies will shift their focus towards working with nano-influencers — creators with fewer than 10,000 followers.
These influencers are known for creating authentic content that resonates with their niche audience, resulting in higher engagement levels. Followers perceive them as more “real” than mega-influencers.
Brands can benefit from working with nano-influencers in two ways. Firstly, they have access to a small but loyal audience base that highly trusts the influencer. A Partipost study found that nano-influencers had the highest impact on consumer buying decisions at 46%, compared to celebrities at 20.6%, macro-influencers at 17.7%, and micro-influencers at 15.7%.
Secondly, since these influencers have a smaller following, they charge less than larger influencers. This allows smaller startups with limited marketing budgets to enter the influencer marketing space and compete with bigger brands.
Additionally, working with multiple nano-influencers can be an effective strategy for reaching small, hyper-niche audiences.
Figure 2: Nano-influencers have the most effect on buying decisions. Source: Partipost
Trend 6: Increased Regulations
The year 2022 witnessed a growing maturity in the influencer marketing industry regarding expectations and regulations. New rules and governing laws are set in place.
For instance, influencers and marketers recognize the importance of maintaining authenticity and relatability concerning image editing. Marketers also agree with the need for regulations, with 73% supporting the government’s attempt to regulate the industry. This trend is reflected in the introduction of laws such as the Digitally Altered Body Image Bill in the UK, which calls for influencers to disclose edited images.
In addition to government bodies and legislation, social media platforms have developed rules and regulations for influencer collaborations. Instagram, for example, has its own sponsored content guidelines that influencers must follow when posting content on the platform.
As for hidden advertising, transparency is critical. Regulators will penalize influencers who do not correctly disclose sponsored posts or gifts from brands.
With the industry multiplying, it is expected that regulators will continue to take steps to ensure that influencer marketing is conducted fairly and ethically.
Trend 7: Co-creating Products With Influencers
Companies are collaborating with influencers to co-create products, as they are experts in their niches and deeply understand their target audience. This partnership is beneficial for both parties. The brand gains access to the influencer’s followers, and the influencer can bring their ideas to life.
Co-creating products with influencers allow brands to innovate and bring unique offerings to the market while also maximizing the effectiveness of their marketing campaigns by leveraging the influencer’s authority and credibility within their community. The beauty retailer Sephora set an example and teamed up with Maroua from The Doll Beauty, a beauty influencer, to launch a new makeup collection.
Figure 3: Sephora launched a new makeup collection with The Doll Beauty. Source: Facebook
Trend 8: Influencers As Affiliates And A Hybrid Model
We expect a convergence of affiliate and influencer marketing in 2023. As influencer marketing grows in popularity, more and more influencers are incorporating affiliate marketing into their strategies. They can earn commissions on sales from their followers, allowing them to monetize their content more sustainably and profitably.
Brands also see the value in collaborating with influencers who use affiliate marketing because it allows them to tap into influencers’ reach and influence while generating sales. As more brands and influencers recognize the potential benefits of this approach, the convergence of affiliate and influencer marketing is expected to become more common in 2023. By combining the strengths of affiliates and influencers or creating campaigns that use a hybrid between both, brands and influencers can create more effective, easily traceable campaigns.
Elevate Your Brand With The Power Of Influencer Marketing
With the influencer marketing industry rapidly advancing by leaps and bounds, brands must stay informed and consider future opportunities to expand their reach and positively impact their revenue.
Working with a marketing agency or using influencer marketing platforms can help you save time and money (and improve the efficiency of your campaigns). Our platform, AtisfyReach, enables brands of all sizes to engage in influencer marketing at their own pace and scale. Our platform’s data-backed expertise and AI technology can assist you in finding the right creators at reasonable rates and running a successful data-driven campaign. Sign up for a demo here.