Is this the end of celebrity endorsements for brands?

Kanye West is yet again in the spotlight, after Gap and Adidas decided to cut ties with the singer. This is not the first time celebrities have tainted the name of brands who represented them. In 2017, Kendall Jenner and Pepsi were accused of trivialising Black Lives Matter and police brutality in an advertisement which was later pulled after receiving online backlash. Another example is Nike terminating their contract with cyclist Lance Armstrong when it was discovered that he had been misleading the brand and the public for more than a decade by taking performance enhancing drugs. This is why it’s important that brands choose to partner up with content creators that align with their beliefs and values.

This was highlighted in landmark research by Room Unlocked – a platform overhauling influencer marketing for the world’s biggest brands – revealing 40% of Brits say those that make real partnerships with true fans are the brands they trust the most. Modern-day consumers are savvy enough to know when their favourite influencer or celebrity is probably pocketing from mentioning a product on their social media, meaning they are now demanding for organic and genuine collaborations. Further reinforcing this, Room Unlocked study unveiled 32% of Brits say they now have less of a connection with brands they previously favoured because they have partnered with influencers who lack authenticity.

CEO and founder of Room Unlocked, Alex Payne, argues that by eliminating currency out of the equation, and instead focusing on ‘value exchange’, the relationship between brands and their ambassadors is only driven by advocacy and passion. With Room Unlocked’s value exchange approach, influencers seek out the products/services they genuinely want to promote, solely in exchange for receiving them – not for money.

Alex Payne CEO and co-founder of Room Unlocked, comments:

“Influencers are earning less because brands are being more cautious with their spend, ensuring they connect with the right creators who align with their values and also those of their customers. Influencers who are going to survive and thrive in the current climate are those that have a social cause or genuine passion at the heart of their voice and the content they create, rather than just posting things that they’ve been paid to advertise. Authenticity has quite rightly become king amidst an industry that has been awash with disingenuous content throughout the years and this is becoming increasingly easier to spot.

“Another crucial trend that’s causing influencers to report a reduction in earnings is the simple fact that there are far more of them now. There’s been a wave of people leaving their jobs to chase this career path meaning there’s more competition by way of choice and as such, brands can pay less. Room Unlocked passionately believes that relationships between brands and influencers can be built on love, not money and provide an alternative to traditional, paid routes for content creation. We provide a platform for people to connect and create mutually beneficial and lasting relationships regardless of the current climate.”