Influencers

When I was young, which admittedly is a very long time ago, boys wanted to be policemen, train drivers or pilots, and girls wanted to be nurses and hairdressers. How things have changed! Nowadays young folk want to be social media creators, YouTubers or influencers.

According to a U.S. survey, 53% of Gen Zs (that’s loosely defined people born between 1995 and 2010) consider influencer a reputable career choice. Those dreams may be understandable: Examples abound of social-media superstars, from fashionistas and comedians to gamers, making tens of thousands of dollars for a post promoting the wares of some brand. As consumers spend more of their lives on social media, the amount of money companies are paying influencers is rocketing. And who wouldn’t like to earn a fortune from having fun.

Their dream is earning millions from basically endorsing products and enjoying freebies for as long as you entice your followers to buy the product or experience. Trendy influencers, for example, were invited to spend all expenses paid vacations in Dubai and other popular destinations. Or some influencers have been gifted luxury cars: Audi and Tesla have provided cars to prominent influencers in exchange for content showcasing the vehicles.

American companies’ share of marketing budgets handed over to influencers have reached some $7 billion according to industry sources, while 86% of brands globally said they plan to spend on influencer marketing this year, up from 37% in 2017. Nearly three-quarters of Gen Zs in America have relied on influencers to help them choose products to buy and more surprisingly, so have a third of consumers who are boomers or older (not me, that’s for sure!).

But these are the exceptions and the industry has evolved: Companies increasingly are working with creators targeting a smaller or even niche audience, which as a result earn less – and in most cases not enough to quit their day job. Goldman Sachs, a bank, estimates that as of 2023 there were more than 50 million creators worldwide vying for attention – a number which increases by 10% to 20% each year. That makes a fast growing number of people competing for ever more targeted corporate marketing budgets, a situation resulting in shrinking individual payouts – and most earning nowhere near the fancy lifestyle and earnings they are dreaming of.

Depending on the sources chosen and the method of calculating, payouts to creators vary greatly. But definitely an interesting number is the average annual spend by brands of approximately $214 per influencer collab, down by about 16.79% from 2023 according to the 2024 Influencer Marketing Report. Certainly not very lucrative for the creators. The deal is much more attractive for the brands though, which, according to Marketing Dive, a marketing and advertising publication, derive $5.78 from each Dollar paid to an influencer. Based on the $214 mentioned above, the brands hence earn almost $1‘240 per content creator.

With regard to the motivation of today’s youngsters to become influencers, this I think fits well with all the studies showing that today’s youth is less inclined towards hard work and putting in long hours if necessary to get somewhere in life. Work-life balance is ever more important – and I agree, it should matter – but where as my generation was working hard and going the extra mile if necessary, our kids seem more inclined to choose a path of least resistance.

For sure the societal circumstances have changed dramatically in recent decades: Many younger people are entering the workforce in a world where traditional career paths have shifted. The rise of tech jobs, remote work, and the gig economy has created new opportunities and expectations. Younger generations often prioritise mental health and work-life balance more than previous ones. This doesn’t mean they want to do “less work,” but they may resist the idea of overworking without meaningful results. Surveys and studies suggest that most young workers are willing to work hard but expect fair compensation and flexibility in return. They’re less willing to accept outdated workplace norms or rigid hierarchies.

Social media has glamourised entrepreneurship and passive income, but let’s not forget that real value added and progress is not created on social networks, but on nondescript industrial estates, in laboratories and offices far away from the pseudo limelight of YouTube, TikTok etc.