The Engagement Rate

An industry bulletin for marketers.

Good morning to all of the Kamala Harris memes flooding my feed this week and those memes only. 

Brand and athlete partnerships are starting to look quite familiar… 

As influencer spending rises, advertising funds are increasingly directed towards athletes, but I think I’m having deja vu? These brand-athlete relationships resemble influencer-advertiser dynamics. 

These deals are often shorter and designed with social media platforms like Instagram and TikTok in mind, bypassing traditional intermediaries such as teams and clubs. This shift is illustrated by college basketball players Haley and Hanna Cavinder, who secured a partnership with Under Armour, a type of deal typically reserved for professional athletes before the 2021 Supreme Court decision on NIL (name, image, and likeness) rights. This ruling has enabled college athletes to access influencer budgets, with many securing brand sponsorships within a year. Short-term campaigns, typical of influencer marketing, are now favored, providing athletes with more flexible and frequent earning opportunities. This trend is driven by shrinking marketing budgets and an increased demand among athletes to directly collaborate with brands, offering a lucrative alternative to potentially low sports salaries and the limited timeframe of athletic careers.

This trend is further exemplified by athletes like Jared McCain, whose social media following and brand deals make him resemble a TikTok star more than a traditional basketball player. However, club restrictions on brand partnerships can create friction, leading players to prefer shorter, influencer-style relationships that are less restrictive and more profitable. Agents and athletes recognize that these short-term deals require less management and offer quicker returns, allowing for multiple deals within the same period. Athletes in lower-tier leagues, who often have high engagement rates despite smaller followings, are particularly attractive to brands. These athletes are perceived as authentic content creators and are adept at producing social media content, making them valuable partners for brands seeking cost-effective influencer collaborations. Experts in the field increasingly recommend that brands partner with emerging sports personalities early in their careers to maximize long-term returns, capitalizing on their authentic engagement and content creation skills.

Presented by eMarketer

What’s up with affiliate marketing in 2024? Here’s what consumers are saying

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Get the full breakdown and see what’s trending in affiliate marketing. Read the full report.

The best year of influencer marketing to date! 

It looks like influencer marketing is alive and thriving in 2024, even as other areas of the creator economy face challenges, thanks to some telling insights from Emarketer’s latest report. 

Many brands are increasingly investing in influencer partnerships, with notable growth in both deal volume and value. According to industry insiders, brands are shifting from short-term to long-term collaborations with influencers, recognizing their potential for sustained engagement. Influencer-marketing firms like Fohr and Billion Dollar Boy have reported significant increases in both deal numbers and revenue. Despite broader economic uncertainties and previous budget cuts, influencer marketing has emerged as a stable and lucrative area, attracting substantial budgets and allowing creators to secure more partnerships across multiple platforms such as TikTok, Instagram Reels, and YouTube Shorts.

The resilience of influencer marketing can be attributed to its integration into established advertising practices, allowing for larger budgets and more sophisticated campaigns. Brands are not only increasing their investment in this sector but also elevating the quality and professionalism of influencer collaborations. This trend has led to higher rates for sponsored content and a more serious consideration of influencers at major advertising events. As traditional media loses ground to digital platforms, ad spending is naturally following this shift. Analysts predict that the growth in influencer marketing and creator advertising will significantly contribute to the expansion of the creator economy, potentially reaching $480 billion by 2027. Things are going well and we’re here to celebrate!