Technological advancements and influencer creativity is changing the way brands do business!

If there is anything we can take from 2020 and 2021, it’s that marketing and advertising like we once knew it is now, for the most part, a thing of the past. Pre-pandemic, leading up to 2020, the influencer market in South Africa was already a budding industry and what the pandemic did was accelerate this growth. Not only did the pandemic accelerate the growth and number of content creators joining the field, it also revealed just how integral influencer marketing could be and will be in 2022 and beyond, as we forge and build a “new normal”.   

When consumers suddenly found themselves in hard lockdown, brands had to figure out a way to adapt in order to reach them and this meant letting go of their old traditional ways of advertising to their audience and making space for the new digital way within their already-existing ecosystems. With people spending more time on social media, apps like Instagram and Facebook introduced more advanced tools for in-app purchasing and brands have had to figure out a way to align with influencers to drive traffic and engagement to their online marketplaces. Even though the world is opening up again, we will most likely not be seeing many marketers return to their old ways of doing things.  

While there may have been a little bit of uncertainty as to how the influencer industry would be affected when the pandemic hit, all those doubts were shattered when it was reported that the influencer marketing industry grew from $9.7 billion in 2020 to $13.8 billion in 2021 — that’s an entire 42% increase. According to a report done by Collabstr, they project that the influencer marketing industry will reach $15 billion worldwide by the end of 2022. 

 Social media continues to evolve and so too does the technology we have at our disposal to create. Content creators are constantly finding new ways to incorporate the latest social media tools and brands are aligning themselves with the best influencers to help them, not only keep their current customers, but also spread their brand influence to potentially new customers. With this new ecosystem between brands, influencers and social networks, it means a new way of looking at Social Commerce and it also means that the traditional online retailers could be facing a threat. 

An app like TikTok, which was the most downloaded app in 2021, according to stats compiled by Apptopia, has popularized the short video format for content and brands are finding ways to align with influencers to market their products on there and other platforms such as SnapChat and Instagram. In fact, TikTok has become so influential, it has compelled an app like Instagram to introduce many changes in an attempt to compete with what TikTok is doing. This is the year we will be seeing an increase in the number of sponsored content between brands and influencers on TikTok. 

With more brands having made the shift to a more digital style of doing business, it means that we will see more lucrative partnerships between brands and influencers. This also means we will most likely see an even bigger increase in content monetization than what we’ve seen in previous years. There is an increasing number of platforms which allow content creators to charge fees or various forms of subscriptions for their exclusive content. This gives the content creators the opportunity to build their personal brand which they can, in turn, use as leverage when going into a partnership with marketers.  

Another platform that will be a big player in the influencer market this year is Twitch. When artists couldn’t host in-person listening parties for their music releases during the pandemic, they turned to Twitch for live streaming events. YouTubers with hundreds of thousands of subscribers, who are known for doing music reactions, have leaned into the idea of doing more livestreams as a way of giving their supporters added value content. However, without a doubt the most popular form of entertainment on Twitch is eSports. According to statistics provided by Statista, the global eSports market was valued at just over $1.08 billion in 2021, which is almost a 50% increase when compared to the previous year. Most of the revenue in eSports comes from advertising and sponsorships. Major brands such as Nike, BMW and Coca-Cola are some of the biggest sponsors in this industry. Considering just how much engagement eSports gets, it makes sense why this would be a lucrative industry for brands and influencers to get involved in.  

Another trend we will see more of in 2022, especially here in South Africa, is of nano and micro influencers becoming more popular with brands. This is largely due to stats showing that these smaller influencers tend to actually have a better engagement rate than the much bigger influencers. Nano influencers have a dedicated and trusted following which is pleasing to brands because the brands can stretch their budget by partnering with these influencers rather than spending that budget on bigger influencers who don’t always have the best return on investment.  

It is going to be an interesting time to see how influencers create with new technologies and how brands adapt to consumer behaviour. So, whether you are a marketer, a consumer or a content creator, there is an increasing number of ways in which the “new normal” will be impacting you this year and beyond.