How much advertisers have cut their influencer budgets in 2020, according to a survey of marketers who control $46 billion in annual spending – Business Insider

  • Ad spending on influencer marketing has fallen 22% in the first half of 2020, according to a new survey of marketers conducted by the World Federation of Advertisers.
  • A drop in sponsored-post opportunities has forced many influencers to lean into alternative revenue streams, like merchandise, direct-to-consumer products, affiliate marketing, and content-production deals. 
  • While advertising investment has fallen across the board, many brands are still running paid “response campaigns” to address the coronavirus crisis and continue reaching consumers during the pandemic. 
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Influencer marketing is in the middle of the pack when it comes to the categories being hit hardest by the coronavirus-related advertising downturn.

Many multinational companies are canceling or delaying influencer marketing campaigns during the pandemic to save on costs or avoid striking the wrong tone during a public-health crisis, but they haven’t stopped spending completely, according to a new survey.  

Investment in the category has dropped 22% in the first half of 2020, according to a survey conducted by the World Federation of Advertisers between April 22 and April 28. The WFA asked senior marketers at 38 companies (who are members of its organization) about their marketing mix in the first half of this year. The group collectively controls $46 billion in annual ad spend, according to WFA’s report.

While ad investments in influencer marketing dropped far less than spending on events (experiential) and outdoor marketing, which fell 56% and 49%, respectively, for the first and second quarters, the category is underperforming when