Trust In Influencers “Corroding” & Agencies Need To Adapt: Reddit’s VP Business Marketing
Trust in influencers is “corroding across the board” to the benefit of sites such as Reddit, according to Timo Pelz (pictured), the company’s VP of business marketing.
As a result of that eroding trust in influencers — or creators as they have recently become known — Pelz said that influencer agencies need to “evolve and adapt” their business models to “create these win-win situations where you connect brands to communities and audiences that hold true influence.”
Pelz said that internet users had become “more savvy” and that they understood influencers could “game an algorithm” and that there were influencer networks and the “dynamics that drive that economic subset.”
Unable to find genuinely helpful product recommendations from influencers, Pelz said that people are turning to Reddit for advice and inspiration.
“People continue to look for places where they can find honest, authentic and unfiltered opinions,” he said.
“Reddit is one of those places where people aren’t pushing a product on you. People really want to help you. People will not tolerate affiliate links. People just come to ask a question and get an answer from experts who have nothing to gain from it other than just to help each other. That’s becoming increasingly valuable in a world where truth is not as straightforward as it used to be.”
However, TikTok, Meta and Google have all been heavily investing in creator monetisation programs. In fact, TikTok has even launched a talent manager portal to give brands more control over the creators on their payroll.
Of course, the nature of an online influencer or creator is changing somewhat. The halcyon days of the picture-perfect Instagram account spruiking gradual tan lotions, teeth-whitening kits and laxative teas seem to be over. The Australian Competition & Consumer Commission (ACCC) has even launched a sweep of influencers to find misleading posts and recommendations.
“The number of tip-offs reflects the community concern about the ever-increasing number of manipulative marketing techniques on social media, designed to exploit or pressure consumers into purchasing goods or services,” ACCC chair Gina Cass-Gottlieb said in January.
“At this point in the influencer economy maturity process, people have understood that this is just another way of getting a testimonial,” added Pelz.
“In the beginning, people really understood that there was someone with authority on a topic and they are making a recommendation. [Now] more often than not, you’ll see influencers recommend similar products from the same category over the course of a very short amount of time and watering down what used to be [their] authority.”
However, Pelz does not think that the music has stopped for influencer agencies and that they have a chance to pivot to a different business model.
“What we’re trying to create is a level playing field and a place like Reddit allows you to reach influencers at scale because the communities are the influencers. That actually fits into a more traditional go-to-market media model than this very bespoke approach to playing a CPM-based influencer post,” he explained.
Reaching those communities is not easy, however. Pelz said that brands need to listen to the users before they start trying to engage or even sell on the platform.
“Don’t start with what you want to do. Start with a challenge they have or a problem they’re trying to solve.
“There’s a place where brands can be a little bit more real and just add value. Just chime in, you can add value and help answer questions. People will be very happy to see that and we know from our own research that people are open to brand participation and brands that participate on Reddit benefit from this halo effect of being seen as more trustworthy.”
Tracking and measuring the effect on your brand is not straightforward, however. Pelz said that brands and agencies would see a “spillover” effect in branded search.
“On average, every second two people ask a Reddit community for a recommendation and they receive an average of seven personalised responses in return,” he said.
“There’s certainly an upper funnel uptick that you can measure in branded search, for example, or see the referral traffic to your website. If you want to start to engage in the mid-to-low funnel, that’s obviously a bit harder to measure when it’s based on organic traffic. But the same thing is true for other platforms, right?”
Please login with linkedin to comment
redditLatest News
Advertisers Wasting 42% Of Digital Ad Spend – Next&Co report
With the cost of living crisis biting I think we can all agree that waste is rarely a positive thing...
Introducing New Podcast ‘MID’: Holly Wainwright Rebrands The Mid-Life Experience For Australian Women
The joys of midlife are celebrated in this new podcast. And play it loud if the old eardrums are starting to creak.
TV Ratings (13/05/2024): The Summit Brings In The Eyeballs For Nine
The Summit does the business on its return for Nine. Meanwhile, press photo confirms the importance of headwear.
Snap’s ANZ Agency Lead Ellie Rogers Steps Down Amid Restructure
Ellie Rogers says family was a big part in her next career move. Not so B&T, who only comes to work to avoid ours.
Breast Cancer Foundation NZ’s Awareness Drive ‘The Signs Are Everywhere’ Is B&T’s Campaign Of The Month for April 2024
B&T's ad of the month is both a worthy cause & worthy winner. Even if KFC's Zinger box can feel slightly hard done by.
iSelect Launches New Brand Campaign ‘Save More’ Via Howatson+Company
If there's an agency that's "so hot right now" it's Howatson+Co. And, yes, B&T's unnecessarily bigged-up this new work.
In The Making Expands Into Melbourne
Brisbane PR agency unveils its Melbourne plans. Still adjusting from the pineapple print to the mandatory all black.
It’s Off The Crisper Sale! Introducing KFC’s New Original Crispy Burger Series
This article contains the location to obtain free KFC burgers. Why not send the workie for real world office experience.
Spotlight On Sponsors: Rugby Australia Sign First Dedicated Female Retailer
Don't know your Storms from your Wallaroos? At least you'll be sports sponsor aware with B&T's ongoing series.
Mars Agency Rebrands As Mars United Commerce
Tired of fielding prank calls about nougat & caramel, Mars Agency rebrands to the more long-winded Mars United Commerce.
Azerion Expands Platform With Interactive Video Products
Did your last inter-team marketing brainstorm see 'interactive video' come up more often than not? Read on quickly here.
Inside NGEN: Seven’s Rachael Everett On What We Can Learn From Sport
Were you the wheezy kid that always wagged PE at school? Even more reason not to avoid this lessons-in-sport piece.
Cairns Crocodiles The Work: Changing the World Campaign Presented By Pinterest
Casual dress & motley beards aside, did you join adland to try and change the world? Get tips from those who did here.
Nine And Magnite Strengthen Partnership To Boost 9Now
Nine calls in Magnite to sort out its BVOD programmatic ads. Not before having to switch the plugs from a Type C to a I.
Cricket Australia Appoints Special As Creative Agency For Men & Women’s International Series
Special wins Cricket Australia's creative. Here's hoping they don't get Thomas Keneally to do a poem of 'C'mon Aussie'.
‘Do I want Kids?’ – Laura Henshaw Asks Just That In Latest Podcast
Whether you have kids or not, just know that if you do, it's no lie that they poo, vomit & keep you awake all night.
R/GA Australia Appoints Marie Conley As Executive Strategy Director
Marie Conley returns from the UK after 12 years to take up new role at R/GA. Immediately flabbergasted by house prices.
Zenith Australia Hires Penny Shell As Strategy And Product Lead
Unfortunately B&T refrained from using "the Penny has dropped at Zenith" in this headline. We apologise in advance.
‘It Takes a Village’: New Industry Support Group For Working Parents Launches
Here's a top industry initiative to help adland families. Sadly, no tips on mummy using the F-word after losing a pitch.
Belinda Rowe Unpacks The Forces Of Discrimination That Lead To A Lack Of Diversity In Leadership Roles
With an enviable resume in tow, Belinda Rowe reveals why our boardrooms aren't as eclectic as they really should be.
Marketing From The Cockpit: How Creativity Transformed AB InBev From A Brand Buyer Into A Brand-Building Powerhouse
Do you find American beers watery, insipid & bland? This conference would have been the perfect platform to heckle at.
Cebu Pacific Launches Campaign To Showcase The Philippines As Major Destination For Aussies
In case you needed another reason to visit the Philippines.
Elon Musk’s X Corp Defeats eSafety In Federal Court
Is it just B&T or is Elon Musk slowly morphing into Darth Vader minus the chokehold?
TV Ratings (12/05/2024): Framer Brings Home The Bacon
Lovelorn famers continuing to do good TV numbers. As desperate roof tilers & abattoir employees say "what about us?"
Starcom Pips PHD & Kaimera To Win Gold At Nine’s Agency Games – Check Out All Of The Photos And Coverage Of The Event
Starcom proves the top agency at Nine's Agency Games. Thankfully, no one has asked for urine testing either.
Zitcha Solves In-store Retail Media Measurement With Game Changing Venvee Partnership
Does your in-store retail media measurement resemble a kitchen draw with the screwdrivers & plastic bags? Help is here.
Menulog Delivers More Beef Than Drake and Kendrick Combined, Via Thinkerbell
This "more beef" ad could have also used William & Harry, Oasis, and Bruce Lehrmann & just about everybody.
Komo Tech Announces Landmark Partnership With Fanatics Events To Revolutionise Live Event Experiences
This partnership promises to "revolutionise live event experiences". Hopefully it doesn't alert any sniffer dogs too.
SCA “Disappointed” After ARN and Anchorage Capital Withdraw Takeover Bid
ARN's bid for SCA trips up at the final hurdle. It's also unclear if other states will have to suffer Kyle Sandilands.
About Bloody Time – News.com.au Campaign Secures Win For Endometriosis Sufferers
News.com.au puts aside its passion for 'China set to invade' & overcharging Sydney cafe articles to do some real good.
Fast 10: B&T Talks Brand Rituals, Keeping It Fresh And DE&I With Affinity Media’s Angela Smith
B&T's probing Fast 10 is so quick it's liable for double demerit points on public holidays.
FriendlyJordies Journalist Calls The Police After Allegedly Being Informed Of Gangland Threats By ABC Reporter
What's better than a Walkley Award for journalism? Getting a hit put out on you by a Sydney underworld drug gang.
Two Iconic Brands Seal The Deal With Exclusive Strategic Partnership
Wonderfully, a horse turned up for this press photo. Better again, everyone went home with some manure for their roses.
JCDecaux Wins Tender To Retain Sydney Airport
Shopping at airports has always been a paradox. On one hand there's the duty-free, on the other there's $24 schooners.
QMS Adds Hills Shire To Sydney Network
Forget the hills being alive with the sound of music, as Sydney's Hills district comes alive with new outdoor.
Taboola Targets Large Advertisers With Taboola Select
Taboola unveils its new Taboola Select offering. It's a lot like diet vanilla Coke without any aspartame risks.