How the coronavirus is changing the influencer business, according to marketers and top Instagram and YouTube creators



  • Marketers and digital creators are adjusting to rapid changes in the influencer-marketing industry as the coronavirus continues to spread globally.

  • As with most businesses in the ad industry, professionals are trimming budgets, canceling events, and looking for alternative revenue streams.

  • Business Insider spoke to influencer-marketing professionals across the industry to better understand how they are adjusting their businesses to continue to earn a living during the coronavirus pandemic and the resulting economic turmoil. 

  • Visit Business Insider’s homepage for more stories.

As the near-term effects of the coronavirus outbreak continue to be felt across the global economy, businesses and creators in the influencer-marketing industry are doing their best to adapt.

Influencers have seen their sponsorship deals shut down and events cancelled, with many shifting their focus to alternative revenue streams that allow them to continue to earn a living without leaving their homes. 

Influencer-marketing agencies are seeing brands postpone campaigns while also observing that engagement on social-media posts is higher than normal as more consumers spend time in physical isolation. Advertisers are also discovering that the influencer-marketing business model could be particularly well-suited to a time in which DIY ad content filmed at home remains viable while commercial photo shoots are shut down.

Business Insider spoke to influencer-marketing professionals across the industry to better understand how they are adjusting their businesses during the coronavirus pandemic and the resulting economic turmoil.

Travel and event-based opportunities have shut down for influencers

Instagram influencers and YouTube creators who earn money through sponsorships are facing a decline in business because of the coronavirus outbreak. 

“I think a lot of people in the travel industry are holding their breath,” said travel blogger Oneika Raymond, who has 84,900 Instagram followers. “Companies are reluctant to take on anything new and therefore that is impacting the income of creators.”

Travel influencer Lauren Bullen who currently lives in Bali and is known as @gypsea_lust on Instagram with 2.1 million followers, said all her paid trips had been canceled. 

Read the full post: Coronavirus is ‘impacting all talent’ on Instagram as brands cancel influencer-marketing deals and paid events get put on hold

Christina Vidal
Christina Vidal

Christina Vidal

Influencers and marketers are shifting strategies to continue to earn a living

Influencers are starting to switch up their revenue strategies, focusing on long-term bets like direct-to-consumer businesses or alternative revenue streams like consulting, teaching, and coaching.

“I think focusing on the long term, and setting adjusted and realistic goals every day to keep you focused and not distracted by short-term blues, helps me a ton,” said Christina Vidal, an Instagram influencer.

Read the full post: Instagram and YouTube stars are shifting strategies as some influencer-marketing sectors hit a ‘standstill,’ focusing on income streams like directly selling products and online coaching

Digital creators with specialized production skills appear to be better positioned than most to continue working with limited disruptions during an extended period of sheltering in place.

As production companies shut down photo and video shoots in order to adhere to social-distancing measures, some brands have been turning to influencers to create ad content. The influencer-marketing agency Obviously told Business Insider that it’s seen a 33% increase in the number of brands looking to hire influencers specifically for content creation.

“For the first time, big brands aren’t able to make those big budget television ads,” said Karyn Spencer, the senior vice president of partnerships at Whalar, an influencer-marketing agency. “You don’t need that full-blown production anymore. YouTubers taught us that.”

Read the full story: Some brands are hiring influencers as a ‘one-stop shop’ for video and animation as production studios shut down — and finding they’re a lot cheaper

Influencers have seen a recent jump in affiliate marketing sales as ecommerce surges, but it could be threatened as major retailers cut programs

Affiliate marketers like RewardStyle and SmartCommerce have seen spikes in ecommerce sales in recent weeks as consumers spend more time at home and shop online. 

“Click-to-cart is becoming really popular right now,” said Keith Bendes, brand partnerships lead at the influencer marketing firm Linqia. “It takes the consumer directly to or or Amazon so the product is already in the consumer’s basket.”

Read the full story: Influencers are seeing a big bump in affiliate link sales as ecommerce surges, but it could be threatened as major retailers cut programs

But any recent gains from commerce marketing could be short-lived, as major retailers like Macy’s, Ralph Lauren, and Victoria’s Secret shut down or lower commissions on their affiliate programs to save on costs. 

At least 10 different retail companies suspended their commission-on-sales programs with the affiliate-marketing company RewardStyle.

Read the full story: 10 retailers like Macy’s, Ralph Lauren, and Victoria’s Secret suspended their affiliate programs with a top influencer platform

The digital-publisher and e-commerce platform Skimlinks, which works with publishers like BuzzFeed, HuffPost, and Hearst, as well as influencers on YouTube and Instagram, also had some companies suspend commission-based programs. 

Retailers including Marriott and Ticketmaster suspended their affiliate programs with the platform, and a spokesperson for Skimlinks confirmed to Business Insider that Amazon’s affiliate program with the platform was closed.

Read the full story: Leaked emails list 11 retailers including Amazon that suspended programs with a top affiliate platform used by influencers and digital publishers

Hanna Coleman is an Instagram and YouTube influencer based in NYC who shares fitness tips with her followers.
Hanna Coleman is an Instagram and YouTube influencer based in NYC who shares fitness tips with her followers.

Hanna Coleman

As people seek at-home workout alternatives, fitness influencers have seen a spike in engagement and in direct-to-consumer sales

Unlike fashion or travel, fitness creators have recently become an anomaly in the influencer business. These creators often focus on direct-to-consumer services, rather than relying on brand partnerships for revenue. 

With an increased interest in at-home work out programs amid the pandemic, some of these fitness creators have seen an increase in sales and overall engagement online. 

“I would say website traffic has been up over 50% since this started week-over-week,” said Ryan Dunlop, chief operating officer and cofounder of Love Sweat Fitness. “We are growing a lot on Instagram right now, and we are seeing organic views of all of our content and engagement on our content up a lot right now.” 

Read the full story: Fitness influencers have seen a surge in sales of direct-to-consumer workout services, as brand deals slump amid the coronavirus pandemic

Audree Kate Lopez is a fashion stylist, consultant and influencer, @simplyaudreekate on Instagram.
Audree Kate Lopez is a fashion stylist, consultant and influencer, @simplyaudreekate on Instagram.

Audree Kate

Expect sponsored post prices to fall and other changes to come to influencer marketing in the near term

In a recent report, Izea, a company that connects marketers with influencers, studied the impact the coronavirus pandemic could have on the influencer-marketing industry. 

The report found that despite increased social-media usage, the prices paid per post on all social media may fall dramatically in the short term and continue to drop, depending on the length of the coronavirus outbreak and its overall impact.

During the last recession, the average cost of a sponsored post fell by 62.7% between 2008 and 2010, according to Izea’s data.

Read the full story: An influencer-marketing agency estimated how ‘dramatically’ the price of sponsored posts on Instagram and other platforms will fall in the near term

And as brand deals get put on hold, influencers and marketers should consider mixed-compensation models and revised structures to manage costs and improve overall return on investment, Izea said.

What are brands thinking as the situation evolves?

“We’re at an interesting point where brands are in a limbo area where they’re kind of waiting to see what happens before they start spending their budgets as normal,” said Anish Dalal, CEO of the influencer-marketing agency Sapphire Apps.

Read our key takeaways from the report: An influencer-marketing agency made a 68-page report on how the coronavirus could change the industry. Here are the 5 key takeaways.

Influencer marketers say engagement on sponsored and unpaid posts has soared the last few weeks

But even as campaigns get canceled, the ones that remain get more engagement.

As more people stay home in an effort to help contain the spread of the new coronavirus, social-media use appears to be increasing. Influencer marketers are seeing a spike in ad impressions and user engagement on sponsored posts on apps like TikTok and Instagram.

The influencer-marketing agency Obviously said it’s seen a 76% boost in the number of “likes” on sponsored posts on Instagram in the past two weeks.

“Everyone is home and is on TikTok actively, and everyone’s social distancing,” said Mae Karwowski, the company’s founder and CEO. “We’re just consuming so much more content.”

Read the full story: Influencer marketers say sponsored Instagram posts have had views, likes, and comments sharply increase the past 2 weeks

Many influencers are also reporting an uptick in engagement and views on unpaid social-media posts.

In a new survey of 389 digital creators conducted by the marketing firm Influence Central, creators reported seeing increases in audience engagement across social media platforms like Instagram, TikTok, Facebook, Pinterest, and their personal blogs.

Influence Central’s report focused on the period of time from mid-February to mid-March when states and local governments first began implementing stay-at-home orders in response to the pandemic.

Read our key takeaways from the survey: A survey of 389 influencers reveals how viewer habits on Instagram, YouTube, and TikTok have changed in recent weeks

And the cancellation of live sporting events is leading to increased demand for sports-related content on platforms like YouTube and Facebook.

Tubular Labs, a leading social-video analytics firm, looked at what types of content digital creators are uploading and users are being drawn to as countries around the world enforce social isolation. The company put together a 22-page report on what content is grabbing consumers’ attention. 

Read our key takeaways from the report: A top social-video data firm made a 22-page report on how the coronavirus has changed viewer habits on YouTube and other platforms. Here are the 5 takeaways.

Tubular Labs also looked into how consumers have been engaging with livestreamed videos in recent weeks. 

The analytics firm found that real-time news, music, gaming, and animal livestreams all saw significant growth in viewership last month on platforms like Twitch and YouTube.

Read our key takeaways from the report: A new 22-page report breaks down how livestream video has surged in the last month on YouTube, Twitch, and other platforms. Here are the 4 key takeaways.

Brands are focusing on philanthropy and ‘feel good’ messaging for influencer-marketing campaigns

Brands that are continuing to run marketing campaigns during the coronavirus pandemic are treading softly in order to avoid appearing insensitive or opportunistic. Many are leaning on influencers to strike the right tone.

“Brands are being very sensitive not to be tone-deaf at this time,” said Vickie Segar, the founder of the influencer-marketing firm Village. “When you’re working with influencers, they take every product and they put it into context. Their context right now is they’re stuck at home.”

Business Insider spoke with the chief operating officer of the influencer-marketing agency Linqia to learn how the firm is guiding brands and digital creators on how to create sponsored content during a crisis.

Read the full story: 7 key lessons for brands that want to run sponsored social-media posts during a crisis without appearing tone deaf, according to an influencer-marketing exec

Many brands are focusing on philanthropy and “feel good” messaging in recent ad campaigns.

The backpack company JanSport recently ran an influencer-marketing campaign focused on its charitable giving to the nonprofit World Central Kitchen.

“We wanted to really connect with students who are being displaced and also try to meet the needs of those students who rely on school for both a safe place to go during the day, and also nutrition,” said Monica Rigali, the senior director of marketing at JanSport. “We just wanted to meet our consumer where they are right now. And we know they’re on TikTok probably more than they should be.”

In other categories of advertising like traditional TV commercials, brands like Toyota have been leaning into “feel good” messages of unity in place of more transactional messaging.

Read the full story: JanSport hired a Gen-Z ‘think tank’ to help launch a TikTok influencer campaign during the coronavirus pandemic without appearing tone deaf

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Read the original article on Business Insider

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