
Recession-era influencers
Influencers have typically thrived during shaky times, from the pandemic recession to sky-high inflation. But something is shifting.
Why it matters: The backlash against this industry — built on selling aspirational lifestyles — is gaining new momentum as economic uncertainty spikes.
Zoom in: Consumer confidence is plunging and the cracks are showing.
TikTok and Instagram users are pushing back against influencers in their comment sections — calling them out for flaunting wealth while many of their followers struggle to pay rent or afford groceries.
By the numbers: The global influencer economy is worth more than $250 billion and encompasses some 50 million creators around the world, Goldman Sachs estimates.
90% of them make less than $50,000 a year from influencing, The Washington Post reports. But the top creators with the most Instagram and TikTok followers can earn tens of thousands of dollars for a single post.
They also get piles of free stuff from brands, from makeup to household appliances to designer purses.
Case in point: Adelaine Morin, a creator with 1.1 million followers, posted a TikTok detailing her $1,000 dinner at Nobu on the Coachella festival grounds. The top comment reads, 'Would I ever? Girl I can barely afford rent.'
In another recent TikTok, Mei Leung, a New York City influencer with half a million followers, tells her audience she spends $2,000 on caviar every week. Some commenters are defending her, while others are saying, 'Skip caviar next week and pay my rent,' or 'Thanks for teaching us peasants.'
What's next: Influencers might have to rethink what they're posting if the rebellion in the comments continues. 'They want to relate to their audience, otherwise they're going to lose their audience," says Dave Yovanno, CEO of Impact, a marketing company that works with brands and creators.
"They're shifting a lot of their content toward value. It's 'where you can get a deal on something,' or 'how you can be a bit more budget conscious,'" he says. 'You'll find creators producing content that they don't usually produce, whether that's parenting advice or cleaning tips."
Influencers who've already built up followings for posting money management and budget tips are getting even more views and likes, Bloomberg reports.
On top of that, the creator industry itself could be hit if companies tighten marketing spend. Yovanno tells Axios he's seeing more brands move to performance-based payouts on influencers' posts instead of paying them flat fees.
The intrigue: Many influencers who have large followings today got their start at the beginning of the pandemic, when they and their audiences were stuck at home.
"In 2020, we saw a lot more mundane influencer content," says Jaz Melody, a freelance social media consultant and creator herself. "It was people just kind of blogging their daily life, and it spoke to people feeling really lonely at the time and craving connection."
"I think that might be coming back now," she says. "People are going to want an outlet that isn't luxury."
Worth noting: The pandemic recession was unique — people had more time to scroll and stimulus checks to spend. A future downturn would be uncharted territory for today's creators.
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