Confluence marketing – is it profitable?
Blog - Jun 16, 2020
As an introduction to the “Confluence marketing – is it profitable?” panel, held at the CHALLENGE 2020 conference, the Digital Element agency conducted a mini survey aimed at assessing engagement of companies and the most relevant online influencers on Instagram and YouTube during and after the COVID-19 crisis.
Slightly more than a month ago, at another panel on influencer marketing organised by Marketing mreža, it was reported that most campaigns were halted for a large number of online influencers, with an estimate that their revenue from collaboration with brands and companies fell by more than 90 percent. Responding to that, Digital Element surveyed whether investments of brands in content on their own channels was reduced as well during the pandemic-related crisis.
The survey was conducted on a representative sample of 30 top corporate/brand and influencer accounts per total engagement achieved in a given month.
The chart below shows that engagement of top corporate and brand accounts was falling in the third month since the crisis outbreak as well. This fact is particularly relevant bearing in mind that engagement of brand pages is mainly strongly correlated to budgets invested in advertising this content. On the other hand, engagement of top influencers even experienced a slight rise in April, while in May it fell back to the result before the crisis outbreak.
The data is even more relevant for YouTube. The number of views of brand content is dropping and it will be very interesting to see in the upcoming period whether this is a passing trend or a new reality. Views of influencers’ content continued to grow and are now higher than before the crisis.
Is the crisis over?
Measured in percentage points, it is evident that brand engagement is still decreasing significantly and that the COVID-19 crisis has definitely made an impact on companies in Serbia. On the other hand, influencers who mainly do not depend on advertising budget and base their results on the popularity of content they post and on loyalty of their audience are remaining at the same level as before the crisis or are continuing to grow.
Bearing in mind that the total engagement of top influencers in Serbia is up to 10 times higher in than the engagement of top brands on SoMe in certain months, it may be concluded that, despite some announcements of revising the present collaboration strategy, brands will tend to relate to online influencers in the upcoming period as well. Naturally, the crisis will probably impose stricter monitoring of results, tighter control of investments and clearly defined ROI, but we can definitely conclude, after the consolidation period, brands will continue to collaborate with influencers.
The article published at the Marketing mreža portal
Author: Andrej Gamser, Digital Director, Digital Element