May Right Now Report
The Right Now Report gives you the high-level updates you need without the unnecessary clutter. In the May Right Now Report, we’re sharing the low-down on TikTok, Insights into influencer marketing for 2024 and how you can change your marketing budget to account for decreases in revenue.
Low-Down on TikTok
On April 24, 2024, President Joe Biden signed a potential TikTok ban into law. Earlier that week, Congress passed the bill as part of a foreign aid package with approval by the House on April 20 and the Senate on April 23. The bill requires TikTok’s parent company, ByteDance, to sell TikTok within 270 days or it will be banned in the U.S.
Many brands and content creators rely on TikTok as a key part of their marketing efforts and even their income.
According to Axios, “The bill only directly names ByteDance and TikTok, but its reach is much broader. It restricts any app that is ‘operated, directly or indirectly (including through a parent company, subsidiary, or affiliate),’ owned or controlled by a company based within the borders of a foreign adversary.”
ByteDance also owns other apps including CapCat, a video editing tool, Hypic, a photo editing tool, and Lemon8, another social media platform. With this in mind, likely, other apps owned by ByteDance wouldn’t be available in the U.S. if they don’t sell. The ban of these apps could also affect marketers’ workflows and content creation while also limiting their marketing efforts and the income of brands and content creators.
The main focus of U.S. policymakers is on the possibility of the Chinese government pressuring ByteDance to hand over user data. This could enable them to use personal information to spread disinformation, interfere with elections, or influence U.S. policies.
In a statement released on April 24 by TikTok, they stated in part, “This ban would devastate seven million businesses and silence 170 million Americans. As we continue to challenge this unconstitutional ban, we will continue investing and innovating to ensure TikTok remains a space where Americans of all walks of life can safely come to share their experiences, find joy, and be inspired.”
ByteDance intends to challenge this ban in court, but now is the time to ensure that if TikTok is a place you show up online your followers can connect with you in other digital spaces. Platforms like TikTok often prioritize users staying on their app so it can be difficult to encourage your followers to find you on other apps. However, you can use the link in your bio, use calls to action in your videos and even run ads to direct people to the other places you show up online.
Nine months is a long time and there is a chance that at the end of it, TikTok will still be available to U.S. users; however, it’s never too soon to diversify how you show up online.
The State of Influencer Marketing
According to new data from The 2024 Influencer Marketing Report by Sprout Social, a social media management and analytics software, 49% of all consumers make daily, weekly, or monthly purchases as a result of influencer posts. 30% of consumers trust influencers more today than six months ago.
“Trust is a priceless commodity that every brand must build in order to compete in a market where consumers have seemingly endless purchasing options,” said Scott Morris, CMO of Sprout Social.
“Our research makes it clear that influencers are not only viable but necessary partners to tap into consumer trust, especially among younger generations. Brands who put influencers at the core of their overall strategies, on and off social, will reap the benefits as the influencer economy grows in tandem with consumer trust.”
More and more consumers are looking to influencers as they make buying decisions, this is especially true with Gen Z. 87% of Gen Z consumers are more willing to buy from brands that partner with influencers outside of just social media content.
As Gen Z consumers age, their portion of the buying power will continue to grow. The findings from The 2024 Influencer Marketing Report showed that they’re more likely to make daily or weekly purchases, furthering the impact of their buying power.
The importance of trust can’t be overstated. According to the PwC Trust in US Business Survey,
If you’re looking to learn more about working with influencers, we’d love to put you in touch with partner agencies that specialize in influencer marketing. Reach out to us today to start the conversation.
Avoid the temptation to cut your marketing budget in lean times
Don’t make the costly mistake of cutting marketing during a downturn. News of layoffs and company closures can be anxiety-inducing, but we want to encourage you to focus on your long-term marketing goals. Cutting your marketing team or budget is a short-sighted decision and can have an unintended residual negative impact.
Inflation, as measured by the Consumer Price Index (CPI), has slowed down compared to its highs in 2023. It’s still slightly above the Federal Reserve’s target rate of 2%. While the overall economic status of the United States economy seems to be making an upturn, some Americans continue to be cautious of the state of the economy. But that doesn’t mean customers have vanished. They’re likely just going to be more cautious. Strong marketing keeps your brand visible and maintains customer loyalty. Make sure you’re present when they’re looking for your services or products.
Remember, your competitors are likely feeling the pinch too. This is your chance to capture market share while they pull back. Invest in your marketing strategically and keep your brand visible. That way when customers are ready to invest, you’ll be the first name they think of.
If budget constraints are your reality, you can consider adjustments instead of permanent cuts.
Now is the time to focus on high-impact, measurement marketing activities. These strategies can include:
- Content marketing that is engaging and provides value.
- Honing in on marketing and advertising channels that have the highest conversion rates.
- Leaning into grassroots strategies that have little to no cost and can have significant returns on the invested time.
Remember, your competitors are likely feeling the pinch too. This is your chance to capture market share while they pull back. Invest in your marketing strategically and keep your brand visible. That way when customers are ready to invest, you’ll be the first name they think of.
If you have any questions about these topics or would like support in implementing these trends in your own marketing strategy, we’re here to help. We’re committed to helping you navigate the ever-changing landscape of digital marketing with ease.
We’d love to hear from you! Reach out to us today to explore how working with Right Relations can help you stay ahead of the curve and bring joy back to your marketing efforts.
