There are several economic actors in the world of influence marketing, but all the activity of the advertising universe is mainly organized around the work of brands & advertising agencies. A brand takes the initiative to set up an effective influence marketing campaign, allowing his company to achieve its objectives. A brand can launch the influence marketing campaign on his own or collaborate with an advertising agency. Here is why advertising agencies are always the ultimate intermediaries between brands and influencers. 

The role of advertising agencies

Today there are so many different communication channels that advertisers (brands) often use the expertise of advertising agencies to help them make their purchases of advertising space. In short, advertising agencies always had the role of buying visibility for brands. 

With the arrival of influence marketing, brands and agencies have begun to turn to dedicated platforms to buy visibility from influencers. These Influence Marketing platforms centralize most of the big influencers and act as a kind of “marketplace” between brands and influencers. These Influence Marketing platforms are especially aimed at brands and are increasingly playing the role of an advertising agency, stealing real agencies’ work. Advertising agencies are therefore losing market shares because of these Influence Marketing platforms with often dubious practices.

Influence Marketing platforms: advertising agencies’ competitors

Today, there are multiple Influence Marketing platforms. However, through these platforms dedicated to brands, it is up to publishers to sell themselves or to brands to find the right broadcast networks. These platforms work with a reverse auction system (it is up to the publisher to choose its price and the platform to sell it). There is therefore low automation of the price set for an ever greater opacity for advertisers. The problem is that advertising agencies generally use the services of Influence Marketing platforms, which themselves offer agency-type services!

When they use an influence marketing platform on their own, most brands neglect the added value they must bring to their influencers or their community. Plus, brands have the choice of influencers, so they always take the biggest ones. Agencies exist to provide their expertise and guide brands in their strategy. In short, they help brands find the ideal influencers and manage campaigns. 

By using these platforms, agencies are promoting and funding their own competitors by allowing these platforms to reach more and more brands. These platforms allow brands to internalize the influence campaign management process. In addition, these platforms also are 100% digital agency specialized in influence marketing, which once again has the effect of stealing market share from agencies.

Micro-influencers: bet on the future 

The Influence Marketing market is growing strongly and is not leaving agencies alone. Indeed, 70% of the influencers are micro-influencers (between 1k and 50k subscribers). Despite the advertising potential of these growing audiences, it is almost impossible for them to collaborate with brands and monetize their audiences. That’s how 88% of influencers continue to practice their passion as a secondary activity. A financial windfall that is of little interest to major Influence Marketing platforms.

Thanks to a new disruptive technology, advertising agencies can now exploit this market opportunity by reorganizing the micro-influence offer to sell their advertising space directly to brands. Discover why and how by clicking here.

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Paul Brunier

Chief Marketing Officer at FameUS. Feel free to ask me anything about FameUS or Influence Marketing! Follow me on Twitter @paulbrunier & LinkedIn @paul-brunier

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