Influencer marketing had grown into a multi-billion-dollar industry from something people did for some extra cash when it started back in 2006. More brands are embracing influencer marketing as a part of their brand strategy, and the industry will only continue to grow bigger.

The influencer marketing industry is continuously evolving. Great influencers are always on the lookout for the latest trends to stay on top of their game. Brands, on their part, also like to keep up with the latest trends in influencer marketing to maximize ROI for every dollar spent on advertisement. So, here are the influencer marketing trends we think you should pay attention to in 2021.

1. The Rise of Micro and Nano Influencers

Influencers are categorized based on the number of their followers. Mega or celebrity influencers have over a million followers, while nano influencers have a following of less than ten thousand. Influencers with ten to hundred thousand followers fall into the category of micro-influencers.

Although mega influencers have more followers, micro and nano influencers have a more dedicated and loyal audience, which translates into higher engagement rates of up to 7%. According to a report by HelloSociety, micro influencers’ engagement rates are 60% higher than those of trendy accounts. With engagement rates declining on major social media platforms like Facebook and Instagram, more brands are looking to partner with influencers who have an engaged audience, even if those influencers have fewer followers.

The cost per post depends on the category of an influencer and the platform. On Instagram, for example, micro-influencers charge $100-$500 for a single sponsored post, while most mega influencers charge well over $10,000. By shifting their attention towards micro and nano influencers, brands will utilize the influencers’ deeper connection with their audiences to grow their businesses at a lesser cost.

Before deciding to work with an influencer on any platform (Instagram, Facebook, Twitter, TikTok, YouTube), brands should have conducted proper research to ensure that the influencer is suitable for their needs and the cost fits their budget. Online tools like vlinghelps brands research to find the perfect YouTubers that match their needs. Filters like category, views per video, and ad cost can be applied while searching to ensure that only qualified channels appear.

2. More Brands Will Become Interested in Ongoing Partnerships

Long-term partnerships between influencers and brands are a lot more beneficial when compared to one-off sponsored posts. It allows influencers to understand the brand they’re partnering with, which helps them create more authentic content that will resonate with their audiences.

Short-term partnerships have a limited impact. When an influencer continuously promotes a product to an audience, the endorsement tends to be more genuine.

Most ongoing partnerships usually come with a written contract that clearly defines the expectations from both parties. This ensures that each party holds up its end of the bargain, and there are no nasty surprises.

If you’re an influencer that wants to jump on this trend, you may want to create a package for brands that include several sponsored posts over some time; you can even offer discounts on the higher-priced packages if you wish.

3. Increase in Performance-Based Deals

As more brands and influencers engage in long-term collaborations, performance-based deals are likely to increase too. Brands want to be sure every penny spent on advertisement is accounted for, and the best way to do that is to compensate influencers based on the results they’re able to produce. Results could mean traffic to a website, sales generated, or anything else that is the ultimate goal of a campaign.

In performance-based partnerships, brands usually provide influencers with a unique link or code to track their activity. Influencers get paid a predetermined amount or percentage each time their link is used to perform the desired action.

In some cases, influencers are paid a fixed fee upfront, which is determined by CPM (Number of audience/followers). In situations like this, brands may request to see results from an influencer’s past campaign to ensure an active audience before proceeding. Bonuses may also be paid post-campaign, depending on the metrics.

Knowing that their compensation is tied to the performance of a campaign, spurs influencers to go and beyond to ensure its success.

4. Integration of Paid Advertising in Influencer Marketing Campaigns

Including paid advertising in influencer campaigns is fast becoming a norm in the industry. It seemed unusual at first because influencer marketing isn’t supposed to be anything like traditional advertising.

However, it has been discovered that amplifying the reach of content created by influencers through paid advertising pushes out the content to more people interested.

5. Video Content Will Continue to Grow in Popularity

Video content has been proven to be the most effective form of marketing, not just in influencer marketing. The reason is that people love videos; the rapid success of video-sharing platforms like Tik Tok attests to that fact. Video content has become very popular in recent years, and that won’t change in 2021.

Research shows that people prefer watching videos over reading text to find out about a product or service. Video content currently accounts for over 70% of mobile internet traffic, projected to increase in coming years.

6. Authenticity Will Become a Key Factor

It’s crucial that influencers should only partner with brands that align with their values and area of expertise because doing otherwise will have negative consequences. Not only will the influencer lose credibility in the eyes of his audience, but the promotion would also be falling on deaf ears. In the end, both the brand and the influencer will be on the losing end.

Authenticity is equally important in content creation. Influencers should not be afraid to try new things they think their audience will love. Conducting a Q&A session or going live are alternative ways to promote a product or brand instead of a standard sponsored post.

7. Brands and Businesses Need to Take a Stand

2020 was a year filled with memorable events, notably the#blacklivematters movement. In the past, it was acceptable for brands to keep silent on social and political topics, but recently consumers expect brands to speak up on these issues. Silence equals complicity.

Brand values are taking center stage, and research has shown that people prefer to buy from brands that share the same values, even if it costs them more.

Influencers have a vital role in helping brands convey their values and stance on issues to audiences. Ultimately, speaking up on issues affecting society will help brands build meaningful relationships with their potential customers.

8. More Employees Will Become Influencers

As influencer marketing keeps evolving, brands are trying new promotion tactics like encouraging employees to become influencers. When employees back up their brand, the endorsement appears to be more genuine.

Brands can have more control over how their influencer marketing campaigns are run if they work with their employees. Brands also get to strengthen their relationships with their employees during the process.

A good example of a brand exploiting the advantages of this trend to its fullest is Macy’s. “Macy’s style crew” is a program that has seen over 300 employees become influencers. Marc Mastronardi, Vice-President of Business Development at Macy’s, while explaining the idea behind the strategy, said, “It’s easier to leverage assets that exist than creating something from nothing.”

9. Influencers Will Become More Specialized

Specialization is critical in all areas of life, and influencer marketing is no exception. When an influencer specializes in a particular niche or industry, they become more attractive to brands in that niche.

Some influencers now prefer the term “content creator.” Many of them are photographers, writers, etc., and they want to be known for what they do.

10. Closer Monitoring by the Government

Another influencer marketing trend to watch out for in 2021 is closer monitoring of the industry by the government.

In a bid to curb the lack of transparency in influencer marketing, the US Federal Trade Commission, as part of its guidelines, requires influencers to disclose their endorsements publicly. Despite this, some influencers have failed to do so. To prevent influencers from misleading the public, the government will have to monitor influencers more closely to enforce FTC guidelines.

Concerns are also growing that often when promoting a product, influencers don’t disclose complete information about it to their audience.

For example, when celebrity Kim Kardashian promoted Diclegis, a morning sickness drug, she failed to disclose its adverse effects in the post. The campaign received a lot of backlashes; the Food and Drug Administration got involved. Eventually, she had to take down the post and upload another one in which she included the side effects of the drug.

Plan Ahead for festive sales and 2022 Influencer Marketing Trends

Influencer marketing has come to stay. Your business will be losing a ton of money without leveraging these marketing waves.

Have you missed out on any of these trends in the ongoing year? It’s never too late. You can strategize and plan for festive sales and the new year. See how vling is helping brands boost brand awareness and sales with influencer marketing.