Top Influencer Marketing Trends in 2023

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Influencer marketing is huge. And it’s growing bigger and evolving each year with new algorithms, content types, and engagement strategies. Brands need to stay ahead of the curve by partnering with influencers and content creators who can help them expand their reach and boost their bottom line. That's why I was thrilled to have Indra Gardiner Bowers, CEO of 62Above, on the recent Lights, Camera, Live episode, where she shared her insights on navigating the ever-changing landscape of influencer marketing.

For over 25 years, Indra has guided her clients, providing strategic thinking and execution. As a founding partner of 62Above, a marketing agency committed to delivering innovative and effective solutions, she has worked across various sectors such as tech, nonprofit, and public affairs. Indra's extensive experience in hospitality, including six years with Marriott and managing PR and social media for numerous hotel chains, has honed her expertise in overseeing the agency's public relations and social media department.

Not only is Indra a strategic and creative thinker, but she's also the firm's sustainability champion and currently serves on the board of Wild Coast.

In this episode, you’ll learn:

What makes influencer marketing unique
Best platforms to focus on and why
The best type of influencer for your campaigns
How much it costs
What are the challenges

What's So Unique About Influencer Marketing?

Indra has worked with many clients, different verticals, and industries. I asked her how influencer marketing stands out from all the other traditional marketing.

She explained that influencer marketing involves bringing in a third party to advocate for your brand. This approach goes beyond traditional media outlets, which may have varying levels of credibility depending on the audience. It's not direct advertising either, as you don't have complete control over your message.

She added that influencer marketing relies on a third party discussing your product or service from their perspective, catering to their audience. The key to success in this area is finding the right alignment between the influencer and your brand. When done correctly, working with influencers can be incredibly powerful.

However, achieving success requires a significant investment of:

Time
Money
Collaboration

That’s why it's essential to consider not only the size of an influencer's audience but also whether their values and beliefs align with your client's mission.

Macro vs. Micro-influencers: Who's Best for Your Campaign?

When starting influencer marketing, the key is knowing which type of influencer to work with, especially if you have a limited budget.

Most people think of working with micro-influencers. But Indra shared that there are three types of influencers:

Nano: 500 to 10,000 followers with an engagement rate of 3%
Micro: 10,000 to 100,000 followers with an engagement rate of 2.3% engagement
Macro: 100,000+ followers with a 1.6% engagement rate

Indra explained that the reason behind the low engagement rate from macro influencers is the lack of genuine engagement and conversation among macro influencers' followers. In contrast, nano influencers offer a more personal experience for their followers.

For instance, Indra worked with an arts and crafts client who wanted influencers to create content and engage with their niche audience who are passionate about their craft. For this client, they were okay working with influencers who have 3000 followers.

That’s because the number of followers doesn't matter as much to these niche audiences. They want to connect with people who share their interests. Nano influencers provide this connection in a more authentic and grassroots manner.

What are the Best Platforms for Influencer Marketing?

HubSpot had said that 72% of marketers used Instagram for influencer campaigns in 2022, and that number is predicted to grow by 4% this 2023.

I asked Indra where most of their clients spend their budget. For her agency, they mostly focus on Instagram. But in general, there are three platforms to consider:

Instagram: Most clients are interested in Instagram due to its popularity and polished content.
TikTok: It requires a significant investment in content creation, though content can be rougher and behind-the-scenes than on Instagram.
LinkedIn: It’s gaining interest from clients, especially in B2B, as it feels more legitimate than other platforms. It’s better suited for one-to-one relationships but has significant re-sharing potential—evolving as a channel similar to Twitter.

The shift towards a pay-to-play model in social media underscores the need for brands to invest strategically for better visibility and success. A recent example of this trend is Twitter's announcement about ending its free verified checkmark feature.

How Much You Should Really Spend on Influencer Marketing

You would think that one of the benefits of working with nano and micro-influencers is their lower cost. Some clients think they can trade their product for something, but it’s not the case anymore.

Indra shared that nano influencers have begun to realize their value based on their engagement rates and adjust their pay structure accordingly. Now, even at the nano level, clients can expect to pay between $1,000 to $4,000 for engagement, even if they provide the influencers with products.

Indra suggested an alternative to cash payment: offering travel experiences. For example, agencies can send influencers to a destination instead of paying cash and cover their accommodations, food, and activities. This can often be more valuable to the influencers than cash.

Regarding logistics, agencies like 62Above handle the planning and coordination of these trips. Before approaching influencers, they consider factors such as accommodations, transportation, and experiences.

Overcoming the Challenges of Influencer Marketing

Finding and vetting influencers are usually the challenges that come up when it comes to starting influencer marketing. But we learned from Indra that’s not the main challenge.

Indra shared that clients are often surprised to learn that influencer marketing isn't just about offering free products anymore! They are shocked as to how much it truly costs.

Influencers have come a long way and now make a good living from their work, so they can set their pricing to suit their needs. In terms of pricing, it’s the Wild West.

When organizing events for influencers, a lot of planning is involved - think of it like arranging a mini-wedding! From transportation and accommodation to organizing activities, every little detail matters.

Indra and her team have tons of experience sending influencers even to international locations, and the logistics are massive. She also added that influencers expect organizers to think of everything.

Meanwhile, working with consumer packaged goods (CPG) brands are a bit more straightforward, focusing mainly on shipping and distributing products to the right people.

Harnessing the Power of Influencer Marketing for Brand Success

Influencer marketing is an ever-evolving field with challenges and opportunities for brands to engage with their target audiences. In our discussion with Indra, we learned the importance of identifying the right type of influencer, selecting the best platforms, and investing in this marketing strategy to reap the greatest benefits.

Staying informed about trends and adapting to changes in influencer marketing will be crucial for brands that want to make a lasting impact. By leveraging insights from experts like Indra, brands can successfully navigate this exciting space, forge meaningful connections with their audience, and watch their reach and bottom line soar.