The balance of power between celebrities and influencers is shifting. Celebrities have long been used by brands to drive awareness and shape consumer opinions given their profile and popularity. Celebrity images are highly crafted and resilient, and their popularity creates a wave of mass reach that is easy for brands to ride. But the fast-growing influencer economy has been disrupting this long-standing approach for some time, and we are now at an inflection point.

The latest wave of the EY Future Consumer Index found that influencers are growing in their power to shape consumer opinions and purchase decisions. Not surprisingly, their presence in daily social feeds means they are more likely to reach younger consumers (Millennials + Gen Z ages 18 to 49)—66% say they follow an influencers vs. 27% of older consumers (Gen X and Baby Booms ages 50 to 65+). More interesting is the fact that only a quarter (25%) of consumers follow someone for being famous. This significant difference underscores how much brands need to pivot away from tried-and-true marketing strategies so their brands and products can stay relevant to future consumers.

A NEW INTERNET = NEW MARKETING STRATEGIES

The proliferation of digital channels (mobile, web, social, and video) is intensifying media fragmentation, making it more difficult for brands to effectively reach and engage their target consumer. And their ability to serve consumers with a message that resonates is being increasingly challenged, too. People are turning to digital channels for information and becoming more selective in who they trust, with a lean towards influencers.

According to the same research, 49% of people say they find influencers’ content valuable, and 42% find it relatable. This results in a powerful effect: 74% find influencers’ product recommendations trustworthy. This combination of value, relatability and trust is driving consumer purchase decisions, too, as 61% say they have gone on to make a purchase based on an influencers’ review. It also reveals the decline of celebrity influence, as few can relate to their luxe lifestyles and immense spending power, particularly during this challenging, economic environment for many.

The shift is driving brands to reimagine their marketing strategies to perform in this increasingly complex digital environment. Brand marketers must now make their budgets work harder, requiring more content be created for each digital channel’s unique specifications and algorithms. Influencers’ ability to make this kind of content helps them hold a captive audience that moves based on their commentary. They control the message now, not brands nor their celebrity ambassadors.

A NEW INFLUENCER MARKET

We are now seeing companies partner with more influencers and more often throughout the marketing funnel to help position their brands, sell more products, and attract new consumers to their portfolio. Per eMarketer, influencer marketing spend growth is expected to outpace social ad growth, growing approximately 14% each year through 2025. This is only the beginning, especially as we see influencer budgets grow along with the increasing demand for product collaborations.

More importantly, influencer partnerships will become a critical content-engine for brands that fills strategic gaps throughout the purchase funnel. These are gaps that celebrities cannot fill because it is out of their scope of work, and goes against their elevated, aspirational brands and lifestyles. Influencer content will help brands authentically tell their story and educate consumers about their products, and it’s produced in a way that will perform well within each digital channel’s specs and algorithms. Even more importantly, this content instills confidence in consumer purchase decisions, making conversion a much easier decision and impacts a brand’s bottom line.

Brands that are not partnering with influencers to address consumer demands for authentic content as well as the ongoing fragmentation of the media landscape will struggle to stay relevant and grow in the future. It’s now an essential part of any marketing mix, and looks set to stay that way.