Small businesses cozy up to creators
Small businesses cozy up to creators. The looming recession and COVID-19 pandemic have led to budget cuts in businesses, including marketing budgets. Big brands are reducing their discretionary spending on creator partnerships, opening up opportunities for brands with limited budgets to partner with top creators at lower cost. Director of Integration Strategy, Leah Gritton of Energy BBDO, also mentions that overall creators become a more appealing tool for marketers when financial resources are limited. Double whammy.
This trend originates from the report:
Hootsuite - Social Media Trends 2023
For months, concerns over a seemingly inevitable recession have fueled restructures, layoffs, and operating budget cuts. Businesses are re- thinking their spending—and often, marketing budgets are first on the chopping block. While we haven’t seen massive cuts in marketing spend just yet, we are seeing larger businesses reduce their discretionary spending.
Budget for creator partnerships has been one of the first things to take a hit, with small and midsize content creators saying they’re seeing declining sponsorship offers and more brands backing out of paid deals this year. While this pullback in spending is a blow to an already precarious creator economy, it leaves the door wide open for smaller businesses to compete for top creators at lower price points. “With the recession, with COVID, and just being more financially pinched.
.. marketing dollars always get cut.
When we’re strapped for resources, creators become a very appealing tool for marketers.” - Leah Gritton, Director of Integration Strategy, Energy BBDO..