Category: Social media marketing

The state of the DTC nation report 2024: unpacking key insights and takeaways

Posted on by Khubi Ali

Every year, we conduct an extensive DTC brand survey inviting over 1,000 decision-makers and marketers from across the UK and USA to share their two cents about e-commerce advertising. 

We use the survey’s insights to curate an annual report, which guides and informs our direct-to-consumer strategies throughout the year. The 2024 report presents an in-depth look at the current state of the DTC market, focusing on primary challenges, revenue dynamics, and growth marketing strategies. 

This year’s survey drew responses from various industries, including skincare, beauty, health, fitness, fashion, food, beverage, and more. The findings reveal how brands are navigating increased competition, rising costs, new e-commerce trends and shifting consumer behaviours.

Here is an overview of the key insights, takeaways and DTC marketing trends from this year’s survey…


  For more information and detailed insights on the state of e-commerce marketing in 2024   

Marketing budgets on the rise

As global advertising and marketing spend continues to grow, brands are increasing their investment in marketing to stay competitive. With a projected 7.7% rise in global marketing spend in 2024, businesses are recognising the need to allocate more resources toward their marketing efforts.

Our survey reveals that brands are following this trend, with a notable increase in marketing budgets. They are not only allocating a significant portion of their revenue to marketing but also prioritising channels that deliver measurable ROI.

The importance of ROI in marketing decisions

Strategic allocation of marketing budget is essential for driving growth and maintaining a competitive edge in the increasingly crowded e-commerce landscape.

The participating brands unanimously agreed that the emphasis on ROI is more critical than ever. Businesses are no longer just spending on marketing because it’s a necessary expense; they are investing in marketing as a core driver of growth. This shift in mindset is reflected in the strategic allocation of budgets toward channels that are not only cost-effective but also capable of delivering tangible results.

Our survey found that businesses are increasingly prioritising channels that allow for clear measurement and optimisation. This trend is particularly evident in the growing investment in data-driven marketing strategies. By leveraging data analytics, businesses are tracking the performance of their campaigns in real-time, making adjustments as needed to enhance effectiveness. This level of insight and adaptability is what sets successful DTC brands apart in today’s competitive landscape.


  For more information and detailed insights on the state of e-commerce marketing in 2024   

 

Rising competition and costs

The competitive e-commerce marketing landscape is driving costs up, particularly in paid media. Meta’s CPM has fluctuated but remains high overall. 

Paid search continues to be a top-performing channel for fashion retailers but presents challenges for the food, beverage, health and fitness sectors due to escalating costs. To navigate this high-cost environment, diversifying the marketing mix and exploring lower CPM platforms is recommended.

Navigating platform changes

Email marketing faces new challenges with updates from Google and Yahoo, including stricter spam filters and enhanced privacy features. However, marketers can navigate these changes by focusing on compliance, list management, and authentication to ensure effective email deliverability

Overview of top and underperforming marketing channels

According to our survey, some marketing channels emerged as clear winners, while others struggled to deliver results. 

  • Email marketing stood out as one of the most effective strategies for DTC businesses, offering high personalisation, cost-efficiency, and strong direct communication with customers. A powerful tool that brands are leveraging to maximise engagement and conversions in 2024.
  • Organic social, on the other hand, proved to be less effective, often hindered by low reach and engagement challenges.
  • Paid social offered mixed results, performing well for some sectors but underdelivering for others. Businesses are finding success by focusing on detailed audience segmentation and innovative content strategies.

Reasons to be hopeful

Despite some challenges, there are several reasons to be optimistic 

  • The global e-commerce market is expected to surpass $5.8 trillion in 2024, indicating robust growth potential. 
  • According to the OECD Economic Outlook 2024 report, signs of economic recovery are evident, with consumer confidence and spending rebounding.
  • Consumer spending on brands is expected to rise by 15% in 2024 as digital shopping habits become more entrenched and the economy stabilises.
  • Social commerce platforms like TikTok Shop are revolutionising consumer shopping behaviours by integrating entertainment and e-commerce, which is expected to grow by 20% in 2024.

  For more information and detailed insights on the state of e-commerce marketing in 2024   

Boost your Meta dynamic product ads with these customisation tips

Posted on by Khubi Ali

Are your Meta dynamic product ads getting lost in the crowded ad ecosystem? Want to make sure your ads stand out from your competitor’s ads and drive better revenue? 

Read on, as our creative strategists reveal hacks and tips to make your dynamic product ads stand out and boost revenue.

“Your dynamic product ads need a creative differentiating strategy that follows the rules to get results but also ensures your ads don’t end up looking like everyone else’s! This is a tricky balance to strike but one that can get you results. Your dynamic product ads, if customised to represent the brand and its unique identity, can reap substantial results.” – Nazanin Faghihi, Performance Marketing Manager.  

By customising your dynamic product ads to represent your brand, you create brand awareness and recall and can significantly enhance ad performance and boost revenue. To optimise your DPAs, try these simple hacks and tricks that have helped us scale countless brands and generate millions in revenue.  

But first, how do DPAs work?

Dynamic Product Ads (DPAs) automatically showcase the most relevant products to each customer, leveraging Meta’s algorithm and data. All you need to do is connect your product catalogue to the platform and create a dynamic product ad campaign. Then you can let the platform handle targeted advertising by showing the most relevant product(s) to each customer—making this ad type one of the most favourable ones for e-commerce brands.  

Here are ten hacks for DPA customisation with examples…

1. Change the background

 

 

Switch the plain white background to an engaging colour that captures attention and aligns with your brand identity. You can choose the colours and fonts to incorporate your branding into your ad creatives. This Clarins ad makes good use of its brand colours and product texture in the ad.

2. Include sale information

 

Displaying the product price might help, but highlighting the original and discounted price together to make the savings prominent and attractive works wonders. It plays with the customer’s psychology by tempting them to shop for the offer price while it lasts.  

For instance, during Christmas, this cookware brand ran Christmas-themed holiday deals, urging customers to buy gifts with a strikethrough price alongside the discounted price, emphasising the value customers are getting.

3. Use multi-dimensional product shots

 

 

Showing multiple angles of your products helps provide a better view, which in turn helps increase engagement. A furniture store, for example, can showcase a sofa from different angles to display its many features, comfort, storage etc. or show it in various room settings, helping customers visualise it in their own space. A cookware brand on the other hand can also use multi-dimensional product shots to showcase product features like this ad by Magic Kitchen does for its utensils and it’s material.

 

4. Customise design to match your brand

 

For DPA customisation, you must make sure the ad creative is in sync with your brand’s design language. You can achieve this by adding the logo and branding assets within the creative. This practice helps build trust and leverages brand recognition. For example, Happy Mammoth, a supplement brand uses its logo within the creative to hold the various product and natural elements of the ad together, reinforcing its identity as a natural product for women.

 

5. Create campaign-specific and seasonal ads

 

You can tailor your ads for specific events, seasons or campaigns to increase relevance and urgency. A good example of seasonal and relevant ads is this one by Gymshark, where the ad copy reads ‘gym girl summer’ with the ad creative featuring Gymshark products on a model sitting in the sun making it a summer campaign.

 

6. Highlight urgency and scarcity

 

 

Apart from seasonality and relevance, your dynamic product ads can also have ad copy that establishes scarcity to trigger action. Just the way this ad copy says ‘this crazy deal is ending soon’ to encourage quick purchases. You can run deals and sales for national holidays to prompt immediate action as this skincare brand has done for the 4th of July.

7. Emphasise unique selling points

 

Differentiate your products by highlighting unique features or benefits. For instance, this beauty brand showcases multiple complementary products that help attain glass skin, appealing to shoppers looking for particular results, which also happens to be a huge skin trend.

8. Use social proof

 

Incorporating customer reviews or testimonials to build trust and credibility is another great way of DPA customisation. This cosmetics brand has displayed 5-star reviews from 250,000+ satisfied customers, boosting confidence in the product’s quality and popularity.

9. Add frames to highlight products

 

Use frames to highlight the product and have fun with your ads to stand out in a sea of plain backgrounds and bland designs. This furniture brand uses a sleek, modern frame to highlight its chic products and designs, aligning with its brand image and aesthetic.

10. Highlight product features

 

 

Another way to improve CTR is by making products prominent and providing essential product features and information. An ad where the product has its features, battery life etc. labelled clearly will help customers make quick decisions.

Is your e-commerce brand ready for TOF marketing?

Posted on by Khubi Ali

“Top-of-funnel marketing is a powerful strategy for building brand awareness and attracting new audiences. However, it’s crucial for e-commerce brands to ensure they’ve maximised their direct response efforts, tested new platforms, and built a strong presence before diving in. By focusing on these foundational elements, brands can create a robust framework for successful TOF marketing campaigns.” 

– Arham Khan, Founder & CEO, Pixated

 

Top-of-funnel (TOF) marketing focuses on building brand awareness among a broad audience to remain top of mind for potential customers whilst also onboarding newer audiences. While appealing, it may not be suitable for all stages in the life cycle of a DTC brand.

Let’s find out when is an optimal time for an e-commerce brand to run upper-funnel marketing campaigns and what it is that DTC brands need to ensure before they start TOF marketing. 

When is the right time for TOF marketing?

The right timing to implement Top-Of-Funnel marketing campaigns is crucial for its success. 

When brands should consider TOF

  1. They have a stable customer acquisition cost (CAC) and positive ROI on bottom-of-funnel efforts.
  2. Their conversion rates from middle and bottom-of-funnel campaigns are consistently strong.
  3. They have a solid understanding of their target audience and buyer personas.
  4. They have reached audience fatigue (a saturation point with their in-market audience) or are experiencing reduced campaign effectiveness over time.
  5. There’s a need to expand their customer base beyond their current reach.
  6. They have the resources (both financial and human) to sustain a long-term TOF strategy.

Benefits and challenges of TOF marketing

Benefits

  1. Increased brand awareness and recognition
  2. Broader reach to potential customers
  3. Establishment of thought leadership in the industry
  4. Potential for viral content and organic growth
  5. Building a pipeline for future conversions

Challenges

  1. Longer time to see tangible ROI
  2. Difficulty in attributing sales directly to TOF efforts
  3. Requires consistent, high-quality content creation
  4. Risk of attracting unqualified leads
  5. Balancing broad appeal with targeted messaging

Real-world examples of TOF success for DTC brands

Dollar Shave Club: Their viral video “Our Blades Are F***ing Great” is a prime example of successful TOF marketing, garnering millions of views and significantly boosting brand awareness.

Casper: The mattress company uses several functions of content marketing, including a sleep-focused publication called “Woolly,” to provide value, educate and engage potential customers at the top of the funnel.

Gymshark: Leveraged influencer marketing and user-generated content to build a strong community and brand awareness among fitness enthusiasts.

Metrics to track when running TOF campaigns

When engaging in TOF marketing, brands should monitor

  1. Brand awareness metrics (e.g., brand recall, recognition)
  2. Engagement rates (likes, shares, comments)
  3. Website traffic and new visitor rates
  4. Time spent on site and pages per session
  5. Email newsletter sign-ups
  6. Social media follower growth
  7. Share of voice in the industry
  8. Long-term customer value

Content strategies for TOF marketing

  1. How-to guides and tutorials related to your product or industry
  2. Informative blog posts and articles
  3. Engaging social media content (e.g., Instagram Reels, TikTok videos)
  4. Podcasts or webinars featuring industry experts
  5. Interactive tools or calculators relevant to your audience
  6. Infographics summarising industry trends or statistics
  7. User-generated content campaigns
  8. Virtual events or workshops

Integration with the overall marketing strategy

TOF marketing should seamlessly integrate with your overall marketing funnel

  1. Ensure consistent messaging across all funnel stages
  2. Use TOF content to nurture leads into middle and bottom-of-funnel campaigns
  3. Retarget TOF audience with more targeted messaging as they move down the funnel
  4. Use insights from bottom-of-funnel conversions to refine TOF targeting
  5. Align TOF goals with overall business objectives

Budget considerations for upper-funnel campaigns 

  1. Start with a small, experimental budget to test TOF strategies
  2. Gradually increase the budget as you see positive results
  3. Consider reallocating some bottom-of-funnel budget if those efforts have plateaued
  4. Invest in content creation and distribution channels
  5. Factor in long-term ROI rather than immediate conversions

Technology and tools for upper-funnel marketing

  1. Social media management and listening tools (e.g., Brandwatch, Sprout Social)
  2. Analytics platforms (e.g., Google Analytics, Mixpanel)
  3. Marketing automation tools (e.g., HubSpot, Mailchimp)
  4. SEO tools (e.g., SEMrush, Ahrefs)
  5. Video creation and editing tools (e.g., Canva, Adobe Premiere)

Future trends in Top-Of-Funnel marketing

  1. AI-powered personalisation of TOF content
  2. Augmented reality experiences for product visualisation
  3. Voice search optimisation for smart speaker users
  4. Interactive and immersive content (e.g., 360-degree videos)
  5. Increased use of micro-influencers for niche audiences
  6. Sustainability and social responsibility messaging
  7. Hyper-local targeting for brick-and-mortar tie-ins

Implementing a robust TOF marketing strategy requires a shift in perspective and approach. While immediate results are tempting, overemphasis on short-term metrics can distort the true impact of marketing efforts. 

Success in TOF marketing demands a holistic view, with regular reassessment of attribution models and close monitoring of upper-funnel strategies. This comprehensive approach provides a clearer picture of marketing effectiveness, enabling brands to build lasting customer relationships and brand affinity. By balancing immediate success with a long-term vision, e-commerce brands can create a sustainable upper funnel strategy that complements their overall marketing ecosystem and drives significant return over time.

 

Creativity vs. Data: the art and science of e-commerce marketing

Posted on by Khubi Ali

Creativity vs. data! Art vs. science! We settle the debate between following hard data and trusting creative instincts.

While the e-commerce landscape is evolving at breakneck speed, one debate remains stubbornly constant: which is more important, the analytical data-led approach, or human intuition and creativity? Which of the two is a tactical necessity for creating impactful growth marketing strategies?

DTC Twitter is rife with hot takes on the subject, and there are strong arguments from both sides. However, as a digital marketing agency committed to growth, we see value in both. The answer lies in the subtle interplay between the science and the art of marketing.

A modern marketer needs to function as both an artist and a scientist. The key to succeeding in e-commerce marketing is finding a balance that leverages the strengths of both data and creativity.

Let’s unpack how these two seemingly opposing functions can work together to drive e-commerce success.

Understanding the left and right brain dynamic

Traditionally, marketing teams have framed the creativity vs. data debate in terms of “right brain” vs. “left brain” thinking. However, recent neuroscience research shows that this oversimplified view of brain function is not entirely accurate.

While the brain’s left hemisphere is often associated with logical and analytical tasks, and the right hemisphere with creative and intuitive thinking, modern neuroscience reveals that brain function is far more complex and interconnected. Both hemispheres work together in most cognitive tasks, including those involving logic, creativity, language, and spatial reasoning.

This insight shifts our understanding of the creativity vs. data debate. Rather than viewing it as a conflict between two distinct modes of thinking, we can see it as a synergy between complementary approaches: the art and science of marketing.

E-commerce: where does art fit in?

In today’s digital marketplace, simply having a store, an online presence and a well-organised inventory isn’t enough. That may have been the approach to e-commerce marketing a few years ago but today’s informed consumer demands more. That is where the art of brand storytelling comes into play.

The modern consumer seeks more than just products; they crave personalised experiences and connections.

Crafting a unique narrative for your brand

Humans are naturally drawn to stories and narratives that resonate with them. These narratives shape brand perceptions and influence the consumer’s decisions in countless ways. For e-commerce businesses, weaving a compelling narrative around a brand can be the key differentiator in a crowded market. The goal should be to use consumer psychology to craft compelling ad copy and stories to forge an emotional bond with the customers that can endure beyond the point of purchase.

Creating a lasting impression requires more than just a functional website or clever marketing. It’s about guiding your visitors through a journey that reflects your brand’s unique personality and values. This journey begins the moment they first come across your ad and continues all the way to the purchase and beyond.

The visual impact

Research indicates that the visual elements of an online store play a crucial role in purchase decisions. A well-designed, visually appealing website or ad can significantly increase the likelihood of a conversion. This underscores the importance of investing in industry-specific visuals and an intuitive user interface.

As a result, success in e-commerce isn’t just about what you sell, but how you sell it. By embracing creativity and the art of storytelling through copywriting and design, brands can create impactful digital shopping experiences that convert.

The objectivity of data and science

Data serves as the backbone of modern e-commerce, offering objective insights that drive decision-making. Its power lies in its ability to reveal patterns, predict trends, and inform strategies with factual precision. E-commerce platforms and brands leverage data insights to optimise everything from inventory management to customer segmentation and ad strategies.

However, data alone isn’t enough. While it can enable hyper-targeting and personalisation of ad content, it may fall short in capturing the nuances of human experience. For example, an algorithm might suggest Father’s Day promotions to all customers who’ve previously bought men’s products, potentially causing distress to anyone who may have recently lost their father.

This is why successful e-commerce advertising requires a synergy between data-driven insights and human empathy. Data provides the ‘what’ and ‘when’ of customer behaviour, while human intuition adds the crucial ‘why’ and ‘how’ to create truly impactful campaigns.

The science of marketing

Data-driven analysis and decision-making

The scientific, analytical approach is all about leveraging data to make informed decisions. In e-commerce marketing, this includes:

  1. Media buying: Using data to precisely target customers and optimise ad spend.
  2. Growth strategy/Performance analysis: Tracking KPIs and ROI to refine marketing strategies.
  3. A/B testing: Continuously improving based on quantifiable results.

Analytical thinking is driven by logic, therefore, in digital advertising, it is characterised by a focus on metrics, data analysis, and growth strategies. It’s about understanding consumer behaviour and using that information to create targeted campaigns.

The importance of this approach is highlighted in a study from McKinsey that found that companies using data analytics extensively are 23 times more likely to outperform their competitors in new customer acquisition.

The art of marketing

Creative storytelling and psychological narratives

The creative and artsy aspects of e-commerce marketing involve understanding consumer psychology and establishing an emotional connection with them using human expression:

  1. Creative strategy/Brand storytelling: Crafting compelling narratives via copywriting and content creation that resonate with customers.
  2. Visual design: Creating eye-catching visuals that stand out in crowded marketplaces.
  3. User experience: Designing intuitive, enjoyable shopping journeys.

Right-brain thinkers excel in creative problem-solving, generating innovative ideas, and thinking outside the box. This creative approach is crucial, as evidenced by a Forrester report which found that emotion-driven brands enjoy a 41% higher market share.

Science (data) X Art (creativity)

Here’s how they work together across different stages of e-commerce marketing:

  1. Growth strategy:
    • Data: Market analysis, competitor benchmarking
    • Creativity: Innovative growth hacks, unique value propositions
  2. Media buying:
    • Data: Data-driven audience targeting, budget allocation
    • Creativity: Creative ad placements, innovative channel selection
  3. Creative strategy:
    • Data: Evaluate performance data from previous and competitor campaigns
    • Creativity: New creative concepts, psychological and emotional storytelling
  4. Ad production:
    • Data: A/B testing different elements
    • Creativity: Crafting visually appealing, resonant and industry-specific ad content. Also creative testing winning ads.

This balanced approach is supported by research. A study by Google and CEB found that B2B customers who perceived value in both business and personal aspects were 60% more likely to make a high-value purchase. While this study focused on B2B, the principle applies equally to e-commerce, where both rational decision-making and psychological connection drive purchases.

A strategic balancing act

Data-informed creativity: Use analytics to identify trends and customer preferences, then use these insights to fuel creative ideation.

Creative data visualisation: Present complex data in visually appealing and easy-to-understand formats to make it more accessible and actionable.

Emotionally intelligent automation: Implement AI and automation tools that can analyse customer behaviour to decode and analyse sentiments while also understanding the consumer psyche.

Storytelling powered by stats: Build compelling narratives in your ads, informed by hard data to create marketing messages that appeal to both logic and emotion.

Intuitive UX design backed by user data: Create user experiences that feel intuitive and emotionally satisfying, but are grounded in solid user behaviour data.

The art and science of marketing are NOT mutually exclusive

Data will always remain a precious commodity in e-commerce. However, as artificial intelligence tools create numerous innovative marketing opportunities in the rapidly changing marketing environment, brands that effectively combine human intuition, creativity and data insights will maintain a competitive advantage.

While data and AI are powerful tools, the human element remains crucial in developing marketing campaigns that truly resonate with audiences. The most successful marketers therefore will be those who can leverage both logical analysis and creative imagination to craft effective strategies in an increasingly complex and technologically advanced marketplace to create compelling ad campaigns and narratives that resonate strongly with the audiences.

Labour’s victory and what it means for digital advertising

Posted on by Khubi Ali

Labour’s landslide victory under Sir Keir Starmer marks a potential turning point for the UK’s digital advertising landscape. While Labour’s manifesto didn’t explicitly target our industry, the ripple effects of their broader policies could reshape how we operate.

Let’s unpack what this election result might mean for digital marketers.

Google search: balancing AI and human touch

Labour’s stance on AI regulation could shake up the search advertising world. Their focus on “safe development and regulation” might impact automated bidding and smart campaigns.

What it could mean

  • A potential shift back to manual optimisation
  • More level playing field for smaller marketing teams and agencies without access to expensive AI tools
  • Increased emphasis on human creativity in campaign management

Industry impact

According to a recent study by Deloitte, 73% of organisations are already using AI in their marketing efforts. Labour’s policies could slow this adoption rate, potentially affecting campaign efficiency in the short term.

Social media: new rules of engagement

Labour’s commitment to strengthening equality could lead to stricter regulations on ad targeting, especially regarding protected characteristics like gender and age.

Potential changes

  • More limited demographic targeting options
  • Greater focus on interest-based and behavioural targeting
  • Increased scrutiny of ad content for bias or discrimination

Pro tip: Start developing more nuanced, content-driven targeting strategies now. They’ll likely become invaluable in the near future.

The bigger picture: adapting to a changing landscape

Labour’s victory is part of a global trend towards increased tech regulation and data privacy protection. The UK’s approach under Labour could set precedents influencing digital advertising worldwide.

Key trends to watch

Sustainability focus: With Labour emphasising sustainable growth, expect increased demand for eco-friendly products and services. According to Nielsen, 73% of millennials are willing to pay more for sustainable offerings.

Education reform: Labour’s plans to revamp creative education could reshape our talent pool long-term. Prepare for a workforce with potentially different skill sets and perspectives.

Economic shifts: Labour’s economic policies could affect consumer spending patterns. Stay agile and ready to pivot your strategies accordingly.

Strategies for success

Diversify skills: Invest in both traditional and cutting-edge marketing techniques.

Embrace ethical advertising: Develop targeting strategies that don’t rely on potentially problematic demographic data.

Content is king (again): With potential targeting limitations, compelling content becomes even more crucial.

Stay informed: Keep a close eye on policy developments and be ready to adapt quickly.

Engage in dialogue: Participate in industry discussions to ensure our voice is heard in policy-making processes.

The road ahead

The Labour victory doesn’t spell doom for digital advertising. Instead, it presents an opportunity to innovate and create more responsible, effective marketing strategies.

As the rules of the game change, the marketing teams that thrive will be those that can balance compliance with creativity, and ethics with effectiveness. It’s a challenge, but hopefully a fun one.

10 Influencer marketing trends for 2024

Posted on by Khubi Ali

Trends that are redefining an already booming creators’ economy…

Despite the economic challenges of the post-COVID world, influencer marketing and creators’ economy is worth $250 billion and is anticipated to leap to an impressive $480 billion by 2027, according to Goldman Sachs estimates.

As the popularity and demand for creators continue to grow; marketers are expected to increase their spend and double down on their strategies. Whilst the trends this year draw heavily from the practices of last year; campaigns are certainly about to become more granular and focused on refined strategies.

In this report, we take you through what’s trending in the creator realms and look at what is expected to shape up the influencer marketing industry in the coming months. From popular platforms to inventive content strategies, we unravel trends that will reign supreme in this world where influence is currency.

1. Harnessing sub-cultures and niche communities

As the industry grows, creators who are immersed in cultural conversations and can speak directly to relevant consumer groups in a meaningful way will be preferred. Brands now see value in targeting specific communities that resonate and build loyal, engaged audiences. To truly resonate with customers in more nuanced spaces, marketers are now looking to explore the subcultures and niche conversations most likely to connect with their audience and truly drive action.

Creators who are proactive within cultural spaces will be key to navigating this effectively. Specificity will now be key. Influencer intelligence will help brands harness subcultures by identifying the right talent that can help them lead relevant conversations through detailed data analysis.

For example; Supreme leverages its roots in the skateboarding subculture by collaborating with skaters and artists. Their limited edition drops and influencer partnerships create hype and exclusivity.

Tool suggestions:

AspireIQ: Helps brands identify and manage relationships with creators in specific niches.

HYPR: Provides detailed data and analytics to find influencers who resonate with the brand and its audience.

2. Micro, nano influencers and content creators

It is important to note that the terms aren’t mutually exclusive, and many individuals may identify as both content creators and influencers based on their activities and goals in the digital space. These terms are fluid, and individuals prioritise different aspects of content creation and influence depending on their niche, approach, and the evolving digital landscape.

Influencers and creators who value authenticity over aesthetics enhance the resonance and relatability aspect of branded content. Content creators like these give brands unique access to niche audiences and intimate communities. They are known to have the most committed communities, providing access to authentic product recommendations. These people cultivate spaces where shared interests and authentic dialogue thrive.

This trend has effectively redefined the essence of being a social media influencer, focusing on resonance within communities rather than reach, thus democratising the space and reshaping the archetype.

Example: Bite Toothpaste Bits works with nano-creators to promote their eco-friendly toothpaste, emphasising authenticity and sustainability.

Tool suggestion: Use platforms like AspireIQ or Traackr to find and manage influencers and content creators, ensuring effective and efficient collaborations.

3. Niche gets nicher

As influencer marketing matures, brands are increasingly focused on hyper-targeted niches to reach high-intent, engaged audiences. This approach allows for more personalised and effective marketing campaigns. In order to drive brand engagement and awareness amongst specific niches, brands are also beginning to recognise the value and importance of choosing the right creators as messengers for the right brands.

For example, the beauty tech brand, Foreo, leverages AI to streamline its creator selection and campaign management, resulting in highly targeted and successful marketing efforts.

Tool suggestion: HypeAuditor uses AI to provide in-depth analytics and insights on influencers, helping you identify the best partners for your brand within specific niches. It ensures you collaborate with authentic creators by detecting fraudulent activity.

4. The rise and rise of livestream shopping

Live shopping events, where influencers showcase products in real-time, are becoming an increasingly popular way to drive engagement and sales. This format combines entertainment with a seamless shopping experience. Amazon or Instagram Lives, where creators host live product demonstrations and answer questions from viewers, have significantly boosted real-time shopping engagement whilst also leveraging their reach and credibility.

Statistics on live shopping reveal a clear preference shift, with a growing number of people favouring live streams for social media purchases. Gen Z (another trend this year) led this survey with approximately half (47%) of consumers having made a livestream purchase in both the US and UK.

Tool suggestion: Obviously then, as a response to these statistics, major platforms like Amazon, Facebook, TikTok, and Instagram have invested in livestream shopping tools and collaborations. Instagram’s Live Shopping feature, for instance, enables users to make direct purchases during a live session, offering an immersive way for shoppers to explore and acquire products

5. Fewer filters, less curation, more authenticity

Consumers are more likely to trust and engage with brands that are genuine and transparent in their communications. Consumer attitudes toward influencer marketing are certainly focused on authenticity, unpolished content, raw cuts, and long-term collaborations. Behind-the-scene content, upper-funnel content with brand values and mission helps consumers resonate with the brand, which in turn helps build trust.

Example: Warby Parker, an eyewear brand, has effectively utilised authenticity in its influencer marketing strategy through its Home Try-On program. This program allows customers to select five frames to try at home for free, sharing their honest opinions and experiences on social media. The brand also encourages customers to share photos and videos of themselves trying on different frames at home. This content is often shared on social media, showcasing real people in their everyday environments. A great example of authenticity and transparency in creator marketing.

6. Diversity and inclusivity will be critical

Diversity and inclusion are critical components of modern marketing strategies and the same is true for influencer marketing. Brands that prioritise representation in their campaigns resonate better with a broader audience.

Fenty Beauty for instance has an inclusive makeup range and runs diverse marketing campaigns that have set a new standard for representation in the beauty industry.

Another brand that is big on diverse model representation is Glossier. They frequently collaborate with influencers from diverse backgrounds to promote their products, ensuring representation across different ethnicities, skin types, and personal styles.

7. B2B influencers will have a moment

B2B influencer marketing is growing in popularity as businesses recognise the value of partnering with industry experts and thought leaders. Business professionals, powered by their expertise and experience, provide credibility and reach within niche professional communities.

Example: HubSpot collaborates with marketing experts and influencers to share insights and promote their software solutions, establishing themselves as thought leaders. Mailchimp and Motion App also run collaboration campaigns through webinars and podcasts where professionals share the resources, systems and solutions they’ve built.

Tool suggestion: Apart from lead gen and inbound content marketing campaigns; businesses can also use tools like LinkedIn Sales Navigator to connect with B2B influencers, fostering professional relationships.

8. Gen alpha is here

As Gen Alpha (born in 2010 and onwards) begins to influence purchasing decisions, brands are now starting to tailor their social media marketing strategies to this young demographic. Influencer partnerships that appeal to both children and their parents are becoming increasingly important.

Reports by Influencer Intelligence and Digital Voices suggest that 49% of Gen Alpha trust influencers as much as they do family and friends for product recommendations. While 55% are influenced to purchase products their favourite YouTube or Instagram stars use. In a report by Ofcom it was cited that among 3-17 year olds, YouTube was the most popular amongst 88%, followed by TikTok (53%), Snapchat (46%), Instagram (41%) and Facebook (34%).

All of these reports are conclusive proof that there are already significant volumes of Gen Alpha consuming content on key platforms that work with creator marketing, presenting brands with a substantial opportunity within this demographic which is likely to become an important generational cohort by 2025.

Example: Ryan’s World, a popular YouTube channel featuring young creators, partners with brands like Colgate and Walmart to create engaging content for kids.

9. AI integration in influencer marketing

Unless you are choosing to live under a rock; we are all aware of the impact that generative AI has had on marketing and the same is true for Email marketing.

AI now plays an increasingly important role in the influencer marketing technology landscape. From recruitment to content generation and the use of virtual influencers; AI has revolutionised the creator economy in more ways than one. AI tools like HypeAuditor, and Traackr amongst others allow brands to identify, analyse, connect and collaborate with creators more effectively. These AI-driven platforms offer advanced data analytics, predictive modelling, and automation capabilities, making it easier for brands to execute precise and impactful influencer campaigns.

Example: The DTC brand Warby Parker utilises AI tools to identify and partner with micro-influencers who have highly engaged followers within the eyewear and fashion niche. This approach resulted in more targeted and authentic collaborations, driving significant engagement and sales.

10. Marketers are about to double up their investment in TikTok

Given its significant appeal to the younger users; 2024 projections indicate a continued surge in TikTok’s popularity among both influencers and brands.

Reports by TheB2BHouse suggest; that marketers are set to nearly double their spending on TikTok influencer marketing in just two years. What was estimated at nearly $800 million in 2022, the figure is predicted to surpass $1.3 billion by 2024, almost tenfold higher than the expenditure in 2020.

TikTok has managed to establish itself with over 1 billion users globally, a milestone surpassed only by Facebook, YouTube, WhatsApp, Instagram, and WeChat. It has been reported that an average global user spends an impressive 31 hours and 14 minutes on TikTok each month, surpassing other social platforms such as Instagram (13 hours and 49 minutes) and even YouTube (27 hours and 21 minutes). Obviously then, brands are keen on harnessing the power of UGC on TikTok to engage the new social-savvy consumers.

TikTok’s features like the TikTok Creative Exchange and Creator Marketplace, streamline connections between creators and brands, making it just the platform for influencer marketing.

Navigating the creators’ economy through these trends

This report highlights some innovative strategies that will help brands navigate the exciting influencer marketing space in the coming months.

Trends like harnessing cultures, niche content and live shopping events are about to cause a creative stir in the creator space and we can’t wait to see how brands will embrace and leverage these trends.

This report also underscores the importance of authenticity, diversity, and AI integration in influencer campaigns going forward. All of these will be key content strategies for brands to form authentic connections with their target audiences.