Emerging influencer economy
Main brands are increasingly relying on influencers to be their ambassador.
China, where influencers became more prominent earlier than in Western countries, is estimated that influencers contribute 1.4% of the country’s GDP. The Economist explains how the rapid rise in economic importance of influencers opens many businesses, regulatory and policy issues.
Influencers are becoming a strong competitor for traditional brand ambassadors (actors and sportsmen, etc.).
Influencers have a greater impact on Gen-Z who will become the major consumers in the coming years.
China will regulate influencers’ economic and Internet roles. Other regulators have plans for influencers to indicate their posts in advertisements.
On the risk side, influencers could ‘cheapen’ some brands, such as Louis Vuitton.
For advertising companies, influencers are also more difficult than traditional brand ambassadors to manage and direct
Major brands will need more influencers to help them with their advertising campaigns, despite all possible difficulties.