As the nation struggles with a pandemic and economic uncertainty, fundamental shifts in consumer habits are leading marketers to rethink existing strategies and budgets allocated to influencers and streaming TV.
These significant shifts are nothing new; just as the dot-com bubble reduced landline penetration and boosted mobile phone adoption, the last recession pushed traditional ad spend to digital. It was an option before, but the recession accelerated the trend to targeting select audiences on social media platforms, giving rise to influencers.
Today, social media influencers are so ubiquitous, they risk becoming meaningless.
Prior to the onset of coronavirus, we saw the influencer trend diminishing while the streaming TV trend became more prominent. Today, streaming is still trending up and influencers have actually seen increased levels of engagement, but they face credibility issues, which could lead to a reduction in perceived value to brands.
Streaming has similar, if not more, targeting capabilities as social media, but now it has the eyeballs — the captive audience of quarantined Americans — up 20% this March, according to Nielsen. Marketers on a tight budget will be forced to reevaluate their relationships with influencers as they seek to increase ad spend on streaming TV services.