Data from The Conference Board informs us that the US has a 96% likelihood of seeing a recession in the next 12 months. These reports show that the nation saw negative real GDP growth rates in the last quarter of 2022 and this is likely to continue into the first quarter of 2023. As many businesses begin to feel the strain, Netinfluencer will discuss how you can use influencer marketing in a recession to receive profitable results.
What Is a Recession?
A recession is defined as a period of economic decline and is symbolized by a downturn within the economic cycle. If a country’s economy declines for at least two consecutive quarters, then it is said to be in an economic recession.
Many factors can impact a recession such as an oversupply, uncertainty within global markets, as well as poorly calculated speculation. In turn, these factors lead to a decrease in growth, less disposable income, and unemployment.
The last time the US saw a recession was in December 2007, a time known as The Great Recession. This was the longest economic downturn since World War Two and finally came to an end in June 2009.
10 Best Practices for Using Influencer Marketing in a Recession
1. Always Focus On Authenticity
Influencer marketing often focuses on using credible creators to promote a service or product. Thus, it is vital that your influencer marketing campaign takes into consideration the effects a looming recession can have on the common consumer. It is beneficial to show the influencer using your product in their everyday lives, rather than composing a lavish campaign that does not relate to your target market.
2. Create Long and Short Term Goals
Although 60% of marketers believe that influencer marketing has a higher ROI than traditional methods of advertising, businesses must predict how their actions are going to affect their financial future. By creating both long and short-term goals, your business can ensure that it is hitting all of its essential milestones and protecting itself from negative future events. For example, an effective short-term goal could be to increase engagement by 50%. However, a long-term goal could be to sell 100,000 units by the end of the year. Both of these goals ensure a positive ROI and allow your business to constantly be focusing on the next step.
3. Build a Flexible Budget
Successful businesses must show resilience during a recession, adapting to every twist and turn that comes their way. When creating an influencer marketing campaign, it is vital that you budget effectively and make sure that you do not harm your business in the process. This can be achieved by paying your influencer per post rather than a hefty fixed rate. Another tactic is to ask the influencer to use the resources they already have, such as filming equipment, to allow your business to reduce its outgoings.
4. Release the Campaign During Less Competitive Times
Though it seems like a good idea to ramp up your marketing campaigns during busier periods such as Christmas and Spring Break, it can be hard to remain competitive against other large corporations. Therefore, it may be more appropriate to release your influencer marketing campaign during less dynamic times. This can be during big political events such as an election or even during more niche celebrations such as Earth Day. Although it may not offer the highest ROI, these times allow your brand to be seen more clearly and have a higher chance of influencing your customer’s purchasing power.
5. Offer a Wide Range of Payment Options
Unlike many traditional celebrities, some influencers can be paid with products rather than money. These tangible incentives are ideal for beauty influencers or lifestyle bloggers, who often benefit from using the products they promote in their campaigns. Additionally, these products can be sent as part of a PR package which influencers can then show off to their devoted audience. This payment option may not be suitable for all influencers, especially mega-influencers, but it can be a great way to reap the benefits of influencer marketing without spending too much money.
6. Use a Wide Collection of Platforms
Just like any other industry, social media is incredibly competitive and has created a very saturated market. As a result, it is vital that you spread your content across a wide variety of platforms. A good example of this is promoting the same short-form content across YouTube Shorts, Instagram Reels, and TikTok. Therefore, your content is more likely to be seen by a much larger audience and you do not have to waste money by creating new content for a different platform.
7. Be Prepared To Negotiate
Many influencers have seen a dramatic increase in their earnings, meaning that in order to upkeep this success they must also maintain their high levels of income. As a business, it is paramount that you are also willing to negotiate payment options and contracts in order to gain the best performance from your chosen influencer. This means scheduling meetings on a regular basis and ensuring that an influencer is completely satisfied with the terms offered before any content or money changes hands.
8. Relate to Your Customer Base
If you are marketing your content to younger audiences such as children or teenagers, it is important to recognize that they may not have a lot of disposable income or buying power. In this case, adults often have to purchase the product on their behalf and during a recession, this can be very difficult. Therefore, it is important that your influencer marketing campaign mirrors the needs of your actual customer. Influencers can achieve this by adding more descriptions of the product in their content and also explaining to the parent how the item is used. This can encourage adults to be more willing to spend their disposable income for the wants of their children.
9. Work With Multiple Influencers
Creating a campaign that uses multiple influencers can ensure that you gain the most content for your money. This strategy can also allow you to gain dominance over a plethora of market segments as each influencer can focus on a different niche. Therefore, your influencers can provide insight into their audience base as well as the different platforms, creating a powerful team of experienced thought leaders that can help you find success in your campaign.
10. Produce a Strategy Plan Beforehand
A strategic plan allows a business to analyze the conditions of its current environment whilst also establishing future goals and targets. These plans are incredibly helpful within influencer marketing as they can help your chosen content creator to learn more about the internal workings of your business and become more on board with your future endeavors. Therefore, your influencer is more likely to remain on track throughout the duration of your campaign and be more inclined to collaborate in the future.
Influencer marketing in a recession can help many businesses to increase their reach and engagement, even during times of financial turmoil. This can help them to remain dynamic and ensure that they do not lose sight of future goals.