Understanding The Influencer Marketing Bubble in The Middle East

The trend of influencer marketing has been so huge in the Middle East until everyone did believe it is true.

In the last 3 years, global brands spent a huge amount of their advertising budget on Arabic influencers. The trend has been massive in some industries such as beauty, fashion, entertainment, travel, and tech. Even local startups and boutique businesses have been desperately chasing micro-influencers to increase their brand awareness. Undoubtedly, influencer marketing has been going crazy in the region and everyone was competing to acquire social media influencers.

Quick facts about influencer marketing in the Middle East:

  • The Arabic consumer are highly consuming videos and stories. Around 30,000 Middle East-based YouTubers have more than 10,000 followers. While almost 12 million daily Snapchat users in the GCC, including 9 million in Saudi Arabia and 1 million in the UAE.
  • According to Gulf News, 94% of influencers in the UAE get paid between $1000 to $5000 per post, while the remaining 6% of the price per post could reach more than $10,000. In some cases, 76% of influencers agree to products or experiences.
  • The top beauty influencer Huda Kattan reportedly earns $18,000 per post, according to com.
  • The GCC market leads the Middle East as the highest demand from brands and the top paid influencers. Lebanon, Egypt and Morocco influencers are paid less.
  • Among social media platforms, Instagram stands as the top place for the influencer marketing game while Facebook is rapidly declining. YouTube is becoming the golden gate for micro-influencers who are targeting Gen Z.

However, some of these stats belong to 2017 and 2018. The scene is shifting.

The Influencer bubble is about to burst

1. The Market Size is Hard to Figure

2. Brands are chasing the vanity metrics

3. Fraudulent Influencer Marketing is Costing Brands

Example: Huwai has launched a campaign early in 2020 with an influencer. It turned out the influencer has been involved in some political debates and the campaign triggered a huge backfire to boycott the brand. The agency was not aware of this? It could be a fatal mistake.

4. Influencer Can Damage the Brand’s Reputation

Example: In 2018 a Kuwaiti beauty influencer made a negative comment regarding domestic workers which triggered massive anger. As a result, several beauty brands decided to cut relations with the influencer to maintain their brand image.

5. Social Media is Becoming Highly Saturated

6. Influencers with Nothing to Influence

My mom says “Put a donkey in front of the camera for long and he will be famous”

We have first to stop calling everyone that generated a substantial number of followers as an influencer and define who is qualified to be an influencer. The name can explain itself clearly.

The influencer is someone who can influence the public audience with an idea, opinion, and most importantly a style of life. Yes, the style of life is the key concept behind the whole idea. The critical factor of being an influencer relies on the ability to influence your context of choice not just your choice. What is the difference then between influencers and content creators? It is a massive difference. Content creators demonstrate their skills and knowledge which engage the audience but don’t follow a systematic and planned agenda. Let’s imagine the content creators as a TV entertainment channel with an objective to attract as many views as it can so it can sell Ads.

On the other hand, influencers are more like the News channel with an agenda to influence public opinions in a certain direction. The main difference here is not particularly the content but it is more about influencing the audience according to a predetermined strategy. The relevancy is a matter of consistency. In an industry like fashion and beauty, the major amount of Arabic influencers are themeless. They are crazy about chasing trends and showing off to stay connected with the audience. You cannot blame them for following such a strategy, however, the issue relies upon the fact that it is becoming hard to differentiate who is who.

A huge number of Arabic influencers are copying the style of life, stories, content, tips and rotating around the timeline. Therefore, social media is more saturated with endless posts of people who are trying to influence the consumer with whatever.

7. Change in Arabic User Behavior

People will be smarter with social media before you know it.

Eventually, that’s not the biggest fear yet. Another major factor is rising on the horizon. Let’s welcome Gen Z who will dominate everything soon (In Egypt I call them Yassta Z due to their overuse of Yassta word). The consumer who is born after 1996 is evolving to become the biggest segment in the region. How Gen Z is using the internet and social media is going to be totally different than us as Millennials. They are native digital consumers, faster, smarter detectors and sensitive to authenticity. Forget the old times of the picture-perfect, super-edited type of content. They know the filters; they sniff the promotions and they need something authentic.

Therefore, what influences this generation is going to be a different game. Gen Z is not influenced by the trend, they are the trend itself. Eventually, Gen Z will continue to follow influencers, but they have more control over direction than the influencers himself.

Millennials will have to follow the Gen Z era

So, in the coming years, the shrinking part of the pie will be Millennials while Gen Z will grow rapidly. Millennials will need to adapt to the native digital consumer who will dominate social media. The first impact of Gen Z first we started seeing in the last couple of years was emerging from the influencer into Micro-influencers. Moreover, Nano-influencers is arriving. Gen Z is decentralized and extremely diversified segment across the Middle East and regular segmentation won’t work out. The reason for this is pretty simple: They are not receivers like older generations, but they are influencers themselves. They are not the customer unless they are part of the game.

8. Arabic Influencers Are Hard to Deal With

In conclusion, the brand had to spend a lot on building campaigns, hiring teams and paying for a list of influencers and the results showed that only small percentage had a positive impact on the brand and ROI. It was extremely problematic to handle the Arabic influencers.

9. Brand Strategy Inconsistency

Bottom Line: Influencer marketing is evolving rapidly in the region and brands started to consider it as an overestimated market and expensive. In-house marketers started to predict the danger of the big bubble and step back while media agencies are trying to push hard on gaining more. While some brands will withdrawal, there will be others who will focus on Micro and Nano influencers. In the last round of consultation, I advised the brand to turn influencer marketing into an affiliate and push towards a partnership based on commission instead of paid posts. However, it obvious that consumers and brands are losing faith in people who claim to be influencers.

Original Article: Understanding The Influencer Marketing Bubble in The Middle East

Undercover Author (Yes I write fiction books..) | Digital Marketing Consultant | I travel to get lost. Tip: Don't follow me I am lost!

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