Influencer marketing & the recession

As marketers start to plan as we feel the pinch of the cost-of-living crisis, many of us are tightening our belts as it seems a potential economic downturn is inevitable.

The last UK recession was not too long ago, with it falling during the height of the coronavirus pandemic in August 2020 and prior to this, the UK faced a recession in 2009 after the economic crisis that began in 2008. During these difficult times, businesses often start to freeze budgets and only look at short-term plans with the worry of consumer behaviour drastically shifting and the long-term effects of a recession.

In such turbulent times, marketers are faced with complex questions about how to proceed with their plans and budgets. However, as we witnessed during the UK lockdowns, brands that reduced their ad spend and scaled back considerably suffered lower growth rates on the other side, and those that maintained or even increased budgets during a weaker economy, saw a number of advantages.

Why should brands continue spending and leverage influencer marketing?

We have seen influencer marketing make incredible strides towards growing up and becoming a legitimate practice. It is now viewed as one of the most powerful tools that marketers have at their fingertips to deliver brand purpose and build communities.

Authentic approach

It’s clear that consumers have an invigorated appetite for authenticity, and they are turning to influencers to find it. During the COVID-19 pandemic when out-of-home advertising paused due to lockdowns, influencers were able to continue building relationships with their audiences and able to work with brands due to their authentic approach, in turn helping brands maintain their share of voice and continue building brand awareness. 92% of consumers trust an influencer more than an advertisement, and during a recession where consumers will have less surplus cash to spend, influencers' relatability to these straitened times will resonate far stronger. They are living through the same experiences as consumers so there is a level of trust which is something very hard for brands to maintain let alone build at such sensitive times.

Share of voice

Whilst many brands will start to batten down the hatches, as we learned previously, the noise level in your competitive space dramatically decreases. This creates huge opportunities for brands that decide to increase or maintain marketing spend. Increased share of voice leads to share of market and in the long run increase in profits.

Alongside this, during a recession, the cost of advertising drops. Meaning to utilise influencer content to its fullest, brands can use influencer content for a paid media campaign if permitted by the creator, at a much lower rate than usual.

Maintaining a share of voice is critical for advertisers during a recession, both to stay front of mind among consumers in a downturn, and in order to position their brands in an optimal way for the recovery.

Cut out unnecessary costs

Creating content to promote your new product or increase brand awareness can mean a huge expense with photographers, videographers, editors and a huge team presence. Influencers are the pros when it comes to content creation, they know what content resonates best with their target audience and are able to tailor the style, look and feel depending on the platform they are posting on.

Working with influencers who align with your brand is a great way to be more strategic with your costs whilst also creating content that with the right content usage rights so you can repurpose for several different mediums including your social media accounts and website.

 Key takeaway: influencer marketing can help brands maintain their share of voice and continue building brand awareness in an authentic way.

Influencers have worked hard to create a highly engaged audience who enjoy following their daily lives – including which brands they use. By promoting your business on their socials, influencers build credibility and trust in your brand. During a recession where many marketing budgets will be cut, and the competitive space thins out, it’s more important than ever to tap into influencer marketing to help keep your brand relevant.

To find out more on how we can help your brand with influencer marketing get in touch. marketing@flourishmgmt.co.uk