As we enter the mid-point of 2023, having insights into the future of influencer marketing can provide you with a competitive edge. In this blog post, we will explore the biggest influencer marketing trends for 2023, empowering you to make informed decisions and maximize your marketing budget. At Ritual Network, a leading influencer marketing agency in the UK, we understand the evolving landscape of influencer marketing and are here to help you stay ahead of the curve.
Convergence of Influencer Marketing and Affiliate Marketing: Amidst economic challenges and tighter marketing budgets, the focus on generating sales and conversions has become paramount. In 2023, businesses will seek tangible results from their influencer marketing campaigns. This trend is accelerated by the concept of social commerce, where influencers play a crucial role in driving product sales. As a result, influencer marketing and affiliate marketing are converging. Coupon codes, affiliate links, and revenue-sharing compensation will become common tactics to track and attribute sales generated through influencer campaigns.
TikTok's Growing Influence in Influencer Marketing Spend: While Instagram has traditionally dominated influencer marketing spend, TikTok is rapidly gaining ground and is projected to surpass YouTube as early as 2024. With its engaging short-form video format and flourishing creator economy, TikTok attracts substantial marketing investments. According to eMarketer, spending on TikTok is expected to increase nearly tenfold by 2024, making it an essential platform for brands targeting younger generations.
TikTok as a Leader in Social Commerce: TikTok's virality and algorithm, designed to promote content discovery through the "For You" page, position it as a valuable channel for influencer marketing. This platform's ability to bridge entertainment and commerce is particularly appealing to brands. A study shows that 67% of TikTok users have been inspired to make purchases, even when they were not actively seeking to buy. TikTok's recent introduction of in-app shopping for US businesses and the potential launch of live social shopping in 2023 further demonstrate its commitment to expanding its eCommerce capabilities.
Escalating Acquisition Costs: Marketers are grappling with rising ad costs across various industries. In a landscape marked by increased competition and limited options, acquisition costs have skyrocketed. To navigate this challenge in 2023, marketers should consider investing in long-term partnerships with top-performing creators. By leveraging smarter asset utilization, you can forge mutually beneficial relationships with influencers, resulting in high-quality content that can be repurposed across multiple channels and formats.
Emphasis on First-Party Data for Authentic Influencer Identification: With privacy concerns leading to the removal of third-party cookies, influencer marketing must adapt. Relying less on third-party data, marketers should leverage influencer marketing platforms like Upfluence that provide tools to identify the best influencers without compromising data privacy. By analyzing first-party data from your customer base, you can pinpoint influential customers who are well-suited to become brand ambassadors, leveraging their authenticity and love for your brand to create compelling content.
Performance-Based Compensation for Influencers: Given shrinking budgets, influencer marketers will increasingly shift towards performance-based compensation models. Influencers will be incentivized to drive results, aligning their interests with those of the brands they collaborate with. Performance-based compensation, such as commission-based coupon codes, mitigates risk for brands and allows influencers to maximize their earnings. This trend is expected to gain momentum in the coming years.
As we embark on the year 2023, understanding and embracing these influential marketing trends will be crucial to your success. At Ritual Network, we specialize in helping businesses leverage the power of influencer marketing to achieve their growth objectives.