Amid economic challenges, inflation, and the need to optimize advertising budgets, a significant shift in influencer marketing is on the horizon. Uchenna Uzo, Professor of Marketing at Lagos Business School, highlighted the evolving landscape, emphasizing the potential for retailers, termed as Nano Influencers, to play a pivotal role in generating long-term marketing success.
While Macro influencers excel in creating brand awareness, the sustainability of performance and loyalty is questioned. Prof. Uzo suggested that retailers, despite having a smaller following compared to Macro influencers, could be more effective in driving increased purchases and sales over the long term. He emphasized the need for a strategic shift in focusing on Nano influencers for sustained brand interactions.
Speaking during a webinar organized by mediaReach OMD in partnership with the Lagos Business School and the National Institute of Marketing of Nigeria (NIMN) which had the theme: ““Top Trends in 2024: Media, Consumer & Markets,” Dr. Uchenna Uzo predicted that retailers will become major influencers for generating sales. The industry often invests heavily in Macro influencers, but the actual long-term impact and loyalty-building potential may lie with Nano influencers. Prof. Uzo recommended exploring partnerships, understanding consumers, and implementing influencer loyalty programs to leverage the influence of retailers.
Against the backdrop of rising inflation and changing consumer behaviors, there is an expectation of a shift in purchasing behavior, with consumers becoming more price-conscious. However, research indicates that a significant percentage of social media purchases are unplanned or impulse buys.
Consumers are expected to switch to cheaper brand alternatives, track spending, and undertake more research before making purchases. There is also a growing trend of consumers repurposing and mending existing possessions.
Despite the challenges, Prof. Uzo highlighted opportunities for innovation, creative consumption, and impulsive buying. Consumers may switch brands, but creative consumption and impulsive buying are expected to rise, presenting opportunities for brands to engage with consumers through innovative offerings.
Affluent buyers in Nigeria, particularly in the premium segment, are likely to maintain their buying patterns but will choose products and services that connect with them emotionally and deliver a distinctive brand experience. Conscious commerce is expected to evolve among consumers, emphasizing smart and thoughtful buying decisions.
The media landscape will need to adapt to dynamic consumer behaviors by employing more strategic and dynamic engagement strategies. Consumer reviews will play a crucial role in decision-making, requiring brands to be more transparent and responsive to feedback.
AI is set to transform digital marketing and creative advertising in Nigeria, with generative AI offering opportunities for strategic spending. Both media players and consumers will witness an increased focus on content generation driven by AI tools. The landscape calls for portfolio rationalization, tough decisions, and a shift towards more strategic and cost-effective operations in the evolving market scenario.
