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Influencer Marketing Cost Is Getting Lower: Is It The Beginning Of The End?

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A new report from Kolsquare, a leading influencer marketing platform, reveals significant trends in the UK influencer marketing landscape for 2025. As influencer marketing continues to thrive, UK brands are adjusting their strategies due to a saturated market, which has resulted in decreased fees for influencers. Despite this, brands are set to maintain high spending, with an average budget of £848,000 annually, and 51% of companies planning to increase their influencer marketing budgets next year. The focus is shifting towards selecting fewer, high-quality key opinion leaders (KOLs) who offer more value and align with evolving ethical standards.

Ethical conduct and transparency have become paramount in influencer marketing, with nearly half of UK brands (49%) prioritizing compliance with corporate ethics when choosing influencers. A vast majority of brands (94%) now require influencers to adhere to strict ethical behavioral codes. This emphasis on authenticity is a response to audience fatigue and a growing demand for more thoughtful and sustainable content. Brands are seeking meaningful collaborations, moving away from superficial endorsements to more responsible influencing.

One of the key findings of Kolsquare’s Influencer Marketing Trends 2025 report is that influencer fees are falling, despite an overall increase in marketing budgets. Brands are using data insights to optimize their influencer partnerships in a highly competitive market. Alix Dumarest, Kolsquare’s Key Account Manager, notes that brands are becoming smarter with their strategies by leveraging data to enhance their competitive edge. “Brands today know that intelligent use of data insights will give them the edge. They are also demanding more from their influencers,” Dumarest explains, adding that influencer fees will continue to decrease as brands seek better returns on their investments.

A notable shift is occurring in platform preferences. While some brands in the beauty sector had pivoted entirely to TikTok for influencer collaborations, Instagram is making a resurgence. According to Dumarest, brands that had previously abandoned Instagram are now returning to it, considering it a “safe haven” for clean brand images and controlled messaging. The uncertain regulatory environment surrounding TikTok has also contributed to its declining popularity.

Marketers are increasingly focused on understanding their competition through Kolsquare’s listening module, which helps them analyze competitors’ campaigns and top influencers. In the UK, Facebook remains widely used by 72% of brands, while Instagram is employed by 71%. The UK leads Europe in regulatory compliance, with 76% of brands adhering to strict standards.

As UK brands continue to evolve their strategies, there’s a growing trend towards working with micro-influencers who offer a better balance of engagement and reach. Additionally, brands are investing more in low-risk, low-budget campaigns, such as affiliate marketing and gifting, to maximize returns without the higher costs associated with larger influencers.

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