Influencers are known to draw crowds, but brands are drawing a line as to how much they’re willing to pay them. In fact, per a new report from Socially Powerful, an influencer marketing agency in the US, UK, Europe and the Middle East, marketing budgets are down 7.7%, driving businesses to seek earned media models to cut costs and pivot away from paid influencer-driven marketing.

A new report from the agency says there’s a 22.7% global increase in earned media tactics and an increasing demand for authenticity as 92% of consumers are prioritizing peer and influencer recommendations over traditional advertising.

The De-Influencing Trend: Quality Over Quantity

Analysts say the rising de-influencing trend is a “major catalyst” for earned media adoption, with consumer trust at the heart. The shift toward earned media disproportionately impacts mid-tier influencers as brands increasingly favor nano influencers (those with up to 10,000 followers) for engagements and cost-effectiveness and mega influencers (those with 1 million followers) for reach. In 2024, 70% of brands primarily targeted micro and macro-influencers, leaving middle-tier influencers vulnerable.

What’s more, TikTok – the influencer’s largest platform before Instagram – and its uncertain regulatory future in the US has compounded challenges for creators with many reportedly “scrambling” to redirect audiences to alternative platforms. This so-called platform “volatility” is forcing brands to recalibrate seeding strategies while intensifying pressure on creators to secure paid collaborations across multiple platforms to maintain earnings stability.

With the influencer landscape’s ongoing evolution, a hybrid approach in which earned media complements paid partnerships is “crucial” for brands and creators alike, analysts say.