With 78.7 million active TikTok users in the US alone, social media influencers have the power to impact consumer choices. Credit: Chay_Tee / Shutterstock.

Despite a general drop in purchasing power, the parasocial influencer-consumer relationship has remained strong, and social-media-driven spending has proved robust, according to a new report.

GlobalData’s Creator Economy report predicts that the creator economy will be worth $41bn by 2030. In a recent briefing, the company noted that consumers’ feelings towards influencers were immune to geopolitical tensions, inflation and economic uncertainty, giving these figures a secure platform. With most social media platforms being free to use, even cash-strapped consumers still engage with – and are influenced by – content pushed by algorithms.

“Unfavourable economic conditions will not significantly change an audience’s relationship with their favourite influencers,” the briefing stated. “Social media users will not immediately unfollow or stop taking recommendations from influencers when they feel the pinch of cost-of-living pressures. Consumers are more likely to cancel paid subscriptions, such as for video streaming platforms, before reconsidering their social media consumption – an activity with no direct upfront cost.”

Media monitoring company Meltwater recently reported that, in its 2023 Influencer Marketing Hub survey, 90% of marketers believed influencer marketing to be effective in encouraging consumer spending. This statistic was supported by its State of Social Media report, which stated that 40% of marketers already use influencer marketing or plan to do so in 2024.

Companies including fast-fashion retailer Shein have found particular success on social media, marketing to younger audiences through their peers. In 2023, the company invited six influencers to a factory tour, which was widely accepted to be an attempt to quell consumer concerns around Shein employees’ working conditions. Despite oft-cited ethical concerns about Shein, the retailer made over $2bn in profit in 2023.

Influencer-driven strategies have certainly found success, and Influencer Marketing Hub’s recent report on TikTok marketing identified that influencer marketing delivers 11 times the return on investment compared to traditional banner ads. It also noted that, of 78.7 million active TikTok users in the US, 90% open the app daily.

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With high rates of engagement, GlobalData considers influencer marketing to be essential to business strategies, stating: “All businesses, not just budget brands, can harness the power of influencers to attract new consumers and keep existing ones loyal.

“Partaking in the creator economy and influencer marketing is fast becoming a non-negotiable, with many businesses turning to online content as their primary advertising strategy. The stronger the parasocial relationship with an influencer, the greater their impact on an individual’s spending, even with cost-conscious consumers.”