The coronavirus outbreak situation has affected both individuals and businesses worldwide. And while travel influencers were the first to take a revenue hit as many countries closed their borders, a new report suggests a wider impact on the social media space.
According to influencer marketing platform IZEA, the COVID-19 pandemic will cause a 15% to 25% drop in sponsored post pricing as businesses that want to advertise with influencers are facing probable financial difficulties and potential staffing issues.
The findings were presented on Wednesday as part of IZEA’s two consumer research studies focused on coronavirus implications. The platform also offered its own industry insights and stated that content creators can “expect the price-per-post on all social platforms to fall dramatically in the short term, and that may continue depending on the length of the coronavirus impact”.
On the bright side, some 66% of the 949 US-based study participants said their general social media usage would increase in the current situation. IZEA also broke it down by platform, with 64% of respondents expecting to watch more videos on YouTube, 63% seeing themselves scrolling their Facebook feed, 43% saying their usage of Instagram would go up, 34% pointed to a Twitter preference, 33% dedicating more time to create pins on Pinterest, 25% Snapchat-ing, 15% remain engaged with their LinkedIn business networks, while interest in streaming platforms TikTok and Twitch receive 12% and 13%, respectively.
Furthermore, a whopping 99% of respondents said they are likely to shop online, with groceries, medications, food delivery, entertainment, fashion or beauty items expected to be in-demand in this order.
With social media consumption on the up, “marketers have the opportunity to connect with a captive audience seeking content, services, and entertainment,” IZEA concluded. In order to remain competitive, influencers are also advised to lower their usual rates, consider different compensation arrangements, adjust kickback amounts earned with affiliate links, and negotiate for a longer partnership with a brand in exchange for a lower cost per post. The platform added that “tolerance for missed deadlines, failure to follow briefs, and difficult personalities/terms will be significantly less.”
Marketers have also been warned not to exploit the situation as any “improper treatment can result in significant social media backlash.”
Ultimately, IZEA concluded that “the next few months will be a time of change and some turmoil, but the overall space will continue to grow and become more efficient.”