“Influencer marketing is worth at least $1 billion, and it has grown up a lot this year, with more sophisticated data and tighter media contracts.”
One of the biggest challenges of influencer marketing has been pinpointing the return on investment for influencer marketing. Fortunately, in the past year, brands and agencies have been able to dig deeper than ever into the audience data of influencers. Influencer networks have higher measurement capabilities than ever and are no longer providing solely impressions and engagements. Agencies are now able to “get data around the tone of voice, content style and follower demographics of influencers to make sure brands reach the right audience.”
Going into 2018, influencers are signing tighter contracts, while talent agencies and influencer platforms have been updating their influencer contracts to “clear up gray areas like post timing, content rights, minimum performance guarantees and FTC compliance.” Media agencies have been working closer with legal teams to ensure contracts are updated and current with trends.
Agencies have been increasingly interested in using influencer content outside of its main social media environment and taking it to programmatic buying, podcast promotions, e-commerce advertising, and TV commercials to name just a few. With this, of course, comes additional content usage fees.
Perhaps one of the biggest challenges of influencer marketing? FTC compliance. The FTC has been aggressively cracking down on sponsored content from influencers who fail to clearly disclose their endorsement relationships with marketers. Many argue that it’s a challenge to remain both authentic and FTC compliant, while others believe that the FTC should create much more specific guidelines for influencers.