Why brands need to conduct influencer risk assessments before collaborating, ET BrandEquity

Shockingly, 94% of global marketers agree that influencer marketing effectively increases brand awareness, forcing influencer marketing budgets to be revisited and increased in 2024. That will be the case. It’s no secret that influencers cultivate genuine connections with their audiences who see them as a source of information, recommendations, and information. The majority of consumers trust the information shared by the influencers they follow. This highlights the importance of choosing the right advocates for your brand. One wrong choice in choosing the right influencer can have disastrous consequences for both brand image and customer trust.Here, when brands collaborate with influencers, influencer risk assessment is a critical step so that brands understand the risks that may arise from their relationships with influencers and minimize potential reputational damage to their brands. can be kept to a minimum.

Evolving customer behavior

Reportedly, up to 49% of all influencers on Instagram have purchased fake followers at some point. This growing concern has made influencer risk assessment a critical checkpoint for brands to run successful influencer marketing campaigns. And as we all know, the influencer marketing industry is a phenomenon that brands can't ignore today. The influx of nano- and micro-influencers has significantly fueled this growth. The global influencer marketing industry, valued at approximately $21.1 billion in 2023, is expected to reach $24 billion by the end of 2024 at a CAGR of 33% over the next few years.

It's no surprise, then, that brands and their customers are becoming more cautious than ever about the quality and authenticity of the content they post online. Choosing the wrong influencer for your brand can have multiple repercussions and result in you losing your valuable customer base due to subsequent loss of trust and confidence. Additionally, there are even bigger concerns about influencers:

With the proliferation of cross-generational users on social media, perceptions of influencers have rapidly evolved in recent years, making these platforms ideal spaces for brand collaboration. While the user base of these platforms is and will continue to grow, brands are now finding the platforms ideal for marketing their products and services. With ad blockers and a decline in trust in traditional forms of advertising, influencer marketing has become a more appealing form of marketing for brands to connect with their audiences.

Influencer risk assessment not only helps brands protect their reputations, but also ensures alignment between influencers and brands. This helps brands find influencers who resonate with their brand values ​​and message. This helps you maximize the effectiveness of your campaigns and reach your target audience effectively.

overcome challenges

With influencer marketing becoming a must every year, brands need to effectively engage with their target audience to stay competitive in the market. This comes with challenges.

For example, micro-influencers (10,000 to 50,000 followers) often attract the attention of highly engaged niche audiences. However, vetting this large pool of smaller influencers requires a more robust risk assessment process, including audience credibility, content integrity, and potential risks associated with collaboration.

When it comes to fake followers and engagement, there are concerns that inflated follower counts and engagement metrics are not real. It is estimated that fake followers cost brands a staggering $1.3 billion in losses in 2019 alone. This is why it's so important to evaluate influencers before considering a collaboration.

Brand safety and trustworthiness should also be considered when evaluating influencer profiles. This also involves looking at past collaborations and actions taken on those collaborations. It is also important to consider whether there have been any illegal activities or scandals in their past.

Benefits of influencer risk assessment

When considering influencer risk assessment, you're ensuring brand integrity is backed by data. Evaluating influencers helps brands ensure alignment of values, messaging, audience targeting, and content. This will help strengthen your brand message and ensure successful collaborations. You will also comply with regulations to avoid legal ramifications related to non-disclosure of sponsored content. Issues like this can cause your audience to lose trust in your brand. Influencer risk assessment also allows you to choose the right influencer and maximize her ROI by reaching your target audience. Successful campaigns include authentic and transparent content that engages your audience. This is why it is so important for brands to hire influencers who can leverage their authenticity as a connecting factor between their audience and the brand.

Key areas to address in influencer risk assessment

A comprehensive influencer risk assessment should delve into several key areas for a successful brand campaign.

• Brand alignment: Does the influencer's content and overall image resonate with the brand's message and target audience? For example, a sustainable fashion brand might want to partner with an influencer known for promoting fast fashion. is a dangerous mismatch.

• Audience analysis: Evaluate the demographics and engagement level of an influencer's audience, not just the number of followers. Are they right for your target market? Beauty brands won't benefit much from collaborating with gamer influencers whose audiences aren't interested in beauty products. Tools like Hypothesis can help you analyze your audience's demographics, interests, and engagement metrics.

• Content audit: Evaluate an influencer's past content for red flags. Have they promoted a product or engaged in activities that are contrary to your brand's values? Past controversy or offensive posts may be relevant and damaging to your reputation.

Proactive protection and trust

When done correctly, influencer marketing can be a powerful tool for marketers for brand awareness, engagement, and sales. By conducting a comprehensive influencer risk assessment, brands can proactively protect their reputation, build trust, and ensure that their influencer marketing campaigns deliver the desired results. When used properly, influencer marketing can change the future of any brand.