Whilst we’re feeling the pinch of the cost of living crisis plus the recession, budget conversations aren't easy. We need to be armed with more evidence and more insight. 

Insight that identifies gaps where your competitors aren’t playing or are pulling back from; insight that identifies channels where their budget will go further; insight that helps us to understand our audience; and insight that brings brand and performance teams together and allows their budgets to go further.

So, what role does influencer marketing play in this, and can it help businesses ride the recession? 

At its foundation, influencer marketing allows brands to connect with an engaged audience in a way that is meaningful to them - and it’s pretty cost effective in comparison to other media. 

However, we can’t talk about influencer marketing without talking about the wider creator economy. The creator economy is all encompassing, from user-generated content, to content creators and influencers through to celebrities. So, depending on the business goal and the budget, there are various ways in which you can tap into the power of the creator economy. 

During economic declines, however, the latter end of that scale from macro creators and beyond, tends to be less impactful for brands who are looking to ‘relate’ to their audience. For example, influencer Lydia Millen caused a stir online when she ‘popped to the Savoy’ because her heating broke, whilst many people sat at home, having to choose between heating and food.

Creators, on the other hand, tend to be more attainable than aspirational which is why they should be a key focus of all marketing strategies. What’s clear is that your ‘lift and shift’ strategy from last year won’t work. 

So, what do we need to do?

Well, despite decreasing levels of disposable income as a result of a recession, one of the greatest benefits of the creator economy is that it allows businesses to be agile. So, if you're planning on shifting your product or services to be more affordable for customers like Boots and their new everyday range, you can drive awareness and demand through UGC and content creators. 

Similarly, at a time when retaining and attracting new customers can be difficult, working with creators can help you understand your community. So, instead of pedalling out your products, partner with creators to understand your audience. Many brands are too scared to do this, but if you’re brave, the feedback will be invaluable and if you listen to it, your audience will follow you. 

The creator economy isn’t like other marketing channels because it provides solutions to various business challenges, from creative, reach and content for brand channels. This gives brands the opportunity to restructure their budgets because teams such as social and digital can chip in and both benefit. 

Five key tips for building a successful creator strategy during a recession:  

1. Keep your ‘why’ at the crux of everything you do. From creators you partner with, content formats and channels you utilise. If your ‘why’ isn’t clear, you won’t succeed. 

2.  Stop pedalling products talking about yourself and start building your community. If a kitchen sponge can attract nearly 3M followers and drive £100M+  in sales, why can’t you? 

3.  Use your content. The value of the creator economy is beyond the creator's social channels. 

4.  Be agile. Not all creator partnerships will work out, and you must have a measurement framework that allows you to test and learn quickly. 

5.  Invest time and money. Engagement and loyalty won’t happen overnight.