There has been a monumental year for influencer marketing as it marked a seismic shift in consumer trust – whether that be institutional, governmental, or on .
According to Edelman’s 2019 Trust Barometer, 44 percent of people no longer trust traditional companies (e.g. Facebook). Similarly, growing negative attitudes and perceptions regarding influencers’ authenticity as a result of high-profile scandals (e.g. Fyre Festival) have compromised consumers’ and marketers’ trust in influencers’ value and influencers’ worth. However, despite these shifts in trust and perception, the amount of time consumers are spending online has remained constant.
According to Hootsuite’s Digital 2019 Report, there are 230 million active users in the U.S., equating to 70 percent of the country’s total population. Moreover, these individuals are also highly active, spending an average of 2 hours and 4 minutes per day engaging with on .
While staying in touch with friends and family remains consumers’ primary motivation for using (50 percent), consumers are now increasingly likely to turn to to view “funny and entertaining ” (42 percent) and is now the second-most prevalent channel for and product research. As well, consumers are coming to to engage with creators. On Instagram specifically, 68 percent of people come to the platform to interact with creators.
Where influencers are responsible for driving user adoption and (vs. brands), are forced to optimize for influencers’ experiences if they want to be influencers’ platform of choice. One of the ways are doing this is by making it easier for influencers to collaborate with brands and in turn, generate revenue. to
Below we look at some of the ‘ perspectives on these new features and what they mean for your . paving the way for influencer- collaborations. Specifically, we look at new features, influencer and
Instagram Releases BrandedTool
In June 2019, Instagram rolled out a new ad format that allows brands to promote branded “Sponsored” and “Paid partnership with …” text appears on Branded posts from creators as ads within the Instagram feed. ads when they run in Instagram’s feed, along with the name being part of each post, which Instagram called “an important piece for our continued investment in ads transparency.”
Previously, influencers could amplify a non-tagged sponsored post, a could amplify a -tagged sponsored post to its followers, or a could repurpose an asset in an ad unit to promote beyond that .
With the new tags, Instagram not only opens up the tagging feature to micro-influencers, but also allows brands (not influencers) to amplify posts to audiences beyond influencers’ followers, boosting and .
Influencers’ Take: Brands lack education on the feature. According to Jane Ko from A Taste of Koko, “I don’t see too many brands asking me to use the partner tag and still prefer me to put #ad or #sponsored for . Most brands have their partner tag closed so influencers cannot tag them without permission … Ideally, with this branded partnership tool on Instagram, brands should be able to go in and boost our branded posts but brands are having difficulty doing that on their end. I’ve heard feedback from brands and agencies that they are unable to or don’t know how to. I still have agencies and brands that will pay me to boost my own post and then reimburse me because they can’t do it on their end.”
Our Take: Paid to their target audiences via paid , more emphasis is put on the influence and less on the followers. Also, it’s a move towards greater transparency and monetization. You can assume that -tagged sponsored posts receive less visibility in the feed and almost all will require paid amplification to reach your . boosting options provide influencers with new and more efficient ways to collaborate with brands. By easily allowing marketers to scale
Instagram Launches In-App Checkout
Instagram launched in-app checkout for shoppable posts from more than 20 different brands, including: Nike, Adidas, Dior, ColourPop Cosmetics, Michael Kors, Outdoor Voices and more.
Instagram will keep a small cut of the sales for facilitated purchases and it’s partnering with PayPal to process the payments. Additionally, by seeing what products, sizes, and styles users purchase, Instagram could use that information to serve better and more relevant ads to users on the platform.
Our Take: From shoppable tags, the shopping collection tab, and rumors of a standalone shopping app, Instagram has gone from photo-sharing app to a frictionless all-in-one shopping app. If your isn’t part of the beta launch, start planning now by making sure your shopping catalog is uploaded to Facebook so that when this feature does roll out widely, you’ll be able to act quickly.
What’s Next? It will be interesting to see if Instagram will eventually grant creators access to this new feature – for instance, will creators be able to add the checkout button on ? The result is a massive improvement in experience from using a trackable link/coupon code in bio and will likely provide influencers with better into the impact their is having on sales. -tagged sponsored posts, enabling marketers to better track sales and fueling deeper partnerships between
Reddit Tests Creator Tipping Option
In March 2019, Reddit began testing a tipping option to pay platform creators. With the update, users would have the opportunity to offer monetary “tips” to creators, providing a whole new motivation for Redditors to post. In turn, creators would have the opportunity to earn up to $100 real-world dollars, as opposed to “Karma,” Reddit’s current on-platform credit system (which holds no monetary value).
The tipping option is, essentially, a CPA-based model – creators don’t get any compensation up-front, but the ceiling is unlimited This could strengthen Reddit’s communities and increase the amount of on its platform, while also encouraging more users to promote their on-platform presences, expanding Reddit’s reach and . But, there are various elements that could also be problematic, like the amount of repurposing and reposting on the platform, which isn’t a problem for users right now, but adding a financial incentive could change the game (think FuckJerry’s recent stolen scandal).
Our Take: In the same way that Facebook, YouTube, and Pinterest are embracing creators, Reddit is now finally starting to embrace creators in its own way. Along these lines, it makes sense that Reddit would begin testing this tipping option user-to-user, instead of platform-to-user. If the platform is going to eventually compensate creators, it’s important to first understand how the community adapts to this new economic system – observing what norms, patterns, and types of behaviors arise – before developing its own payment system.
What’s Next? With tipping, Reddit is essentially introducing a new norm: performance-based creation. Although Reddit isn’t the only platform to test a tipping system (Facebook, YouTube, and Twitch have, as well), it will be interesting to see if the idea of users incentivizing creators based on value will begin to cascade to other .
Download our latest Q1 2019 Influencer Marketing Quarterly Trend Report to learn more about some of the key updates and affecting the influencer marketing sphere and informing your .