Last year we gave our tuppence worth on the power of influencer marketing– and shift of power ever evolving, it’s time to give you an update on what’s shifting in the influencer world in 2025. It’s safe to say that influencer marketing in the last 12 months has quite seriously diversified and organised itself. Changes like the success of social commerce (TikTok Shop has finally achieved what both Facebook and Instagram failed to do), the diversification of micro-influencer niches, and increasing regulation all suggest that the ‘Creator Economy’ is going nowhere. And if you’re not making the most of it – you risk missing out. Here’s all you need to know.
AI for influencers – virtual humans
AI is shaping the creator economy in several ways – but the rise of the virtual influencer is one of the biggies. With this specific section of the market expected to grow by a compound annual growth rate of 40% between now and 2030, these AI, CGI created personas are popping up across all leading social platforms now. And brands love them! These accounts, managed by humans, offer brands partnership that’s scandal-free, drama-free, and 100% on message; just implementation as-instructed.
A great example is Lil Miquela. With 2.4 million Instagram followers she’s partnered with Chanel, Burberry, Fendi and been ‘pictured’ with very real people – like JoJo Siwa, 50cent, and even American politician, Nancy Pelosi. If you’re dubious about how they resonate with the general population, you shouldn’t be. All statistics suggest that they’re received just as well as their flesh and bone counterparts!
AI for influencer marketing – the campaign wingman
In our last article, we spoke about how the micro-influencer can be one of your most useful allies, not many of us marketeers need convincing of this anymore. These influencers with audiences of less than 100k, mean that there are now millions of options for brands – and finding the right partner can be challenging.
AI powered tools are changing the game when it comes to matching brands with influencers. Tools like Hypefy, Upfluence, and LTK, can help brands discover people aligned with their brand, industry, and audience, vet their own audiences, and analyse campaign performance.
The value of the creator economy
The creator economy is projected to be worth around $500 billion by 2027. But it’s not just the size of the industry that’s interesting, it’s the shape.
This valuation is bolstering influencers to better understand their worth, and the ways of working are shifting accordingly. Rather than being paid per post, brand partnerships are now offering affiliate revenue, with influencers themselves being able to diversify income streams to offer paid subscriptions to audiences and even negotiate equity partnerships with smaller brands who are trying to scale.
This in turn is leading to more long-term collaborations too –– less transactional, and more lucrative for both parties when done right.
Social commerce – the biggest change in retail
Social platforms (we’re looking at you TikTok) have thrown another spanner at the retail industry, with the success of social shopping. It’s estimated that 5% of online UK sales are made on a social platform now, with that expected to rise to at least 10% by 2028. The convenience of TikTok Shop, combined with the kick back commission offered to content creators is really driving a transformation in how certain demographics shop.
The content-to-commerce journey is officially seamless now, with content creators livestreaming products that are shoppable at the touch of a button. And whilst the types of products that are currently shoppable are relatively low in value, there’s everything from tools to toilet roll and phone chargers to photo albums – we’ve seen the diversification of influencers into all industries. We can be almost certain that shoppable products will continue to diversify too over the coming months and years.
Nano and micro influencers – ‘niching down’
Nano and micro influencers hold a lot of power that should appeal to brands. The rise in influencer numbers has also led to a diversification and ‘niching down’ in the content these influencers cover. This means that even where an influencer only has 5,000 followers, that audience could be so relevant, so engaged, that it’s incredibly valuable to brands.
Amanda Burns, our Head of Business Development, sums it up perfectly:
“What we love about nano and micro influencers is how connected they are to their audiences. Their followers really trust them, so when they share something, it feels genuine – not like an ad. For brands, that’s gold. Followers are more like friends, we are hanging out in our little communities, in my opinion social media behaviour is going full circle, and we are headed back to the time when we were more connected to a smaller network of people who we really care to hear from. I think we are all more selective on who we allow to reach us, the internet would call it ‘protecting our peace’, and whilst yes, big brands and big influencers still have a stage, we cannot underestimate the true relationship that people have with the nano influencers that they follow”.
To give an example, you might find influencers now no longer cover ‘spirits’, but instead are covering ‘vintage Scotch’. Instead of ‘fitness’, it’s ‘slow-running distances of 10k and less’. And in B2B, LinkedIn is home to an array of new influencers, with sizeable audiences covering every industry and sector imaginable. Everything is far more specific – and in the right circumstances, this is brilliant for brands.
Ethics, fraud and the rulebook
Like every other market once it’s thoroughly established, regulation takes place. Regulatory bodies in sectors like finance and medicine are cracking down on claims being made by creators who aren’t qualified, ensuring consumers are protected to some degree from misleading advice.
And that leads us to the question of ethics in influencing, and it’s not all sweetness and light. Influencer fraud is still lurking in the shadows. In the UK, reports suggest up to half of influencer followers could be low-quality or fake, and as much as 40% of engagement isn’t the real deal. This equates to a lot of time and money wasted by brands, so due diligence really is key!
Our conclusion…
Influencer marketing has well and truly evolved from an unregulated, wild west marketing tactic into a sophisticated, tech-powered, and increasingly quantifiable ecosystem. Whether you’re a brand or a creator, the rules of the game are changing – but it appears that the opportunities are bigger and more lucrative than ever.
Want to discuss how you can make the most of influencer marketing for your business? Or simply want a quick chat to assess whether it’s right for you? We’re always delighted to talk. Get in touch!
