From Transactions to Trust: How Procurement Can Power Up Influencer Marketing

Influencer Marketing’s Growing Role in Procurement: A Deep Dive

In today’s rapidly evolving marketing landscape, influencer marketing has emerged as an essential component of any brand's marketing strategy. However, for many procurement professionals, the nuances of influencer marketing can feel like uncharted territory. With spending on influencer marketing skyrocketing (the industry is estimated to be worth over $20BLN) and its integration into formalized procurement processes becoming increasingly common, understanding how to navigate this unique channel is more critical than ever.

Why Influencer Marketing Matters for Procurement

• Influencer marketing allows brands to connect authentically with target audiences, leveraging the trust that influencers have built with their followers.
• It provides a valuable content generation tool that brands can repurpose across multiple channels, enhancing their reach and engagement.
• Influencer marketing requires a more nuanced procurement approach involving relationship-based engagements, contract management, and content amplification, differentiating it from traditional advertising models.

Influencer marketing is no longer a niche area reserved for lifestyle brands or limited audiences. In recent years, it has become an influential (no pun intended) pillar of marketing campaigns for industries as diverse as finance, pharmaceuticals, and automotive, to name a few. Social media influencers, or creators as they’re often called today, have fundamentally shifted the power of communication away from brands and into the hands of individuals with loyal audiences. These influencers shape public perception, fuel engagement, and ultimately drive purchasing decisions.

Procurement professionals need to be aware of this transformation. Unlike traditional advertising, which allows brands to dictate the message, influencer marketing is all about collaboration and authenticity. Brands align with influencers who speak directly to target audiences with genuine trust and relatability. As Keith Bendes, a Vice President at one of the leading influencer agencies — Linqia, noted during a recent Procurement Foundry webinar, “Creators drive culture, and social media dictates culture. Brands today must be part of that conversation if they want to remain relevant.”

For procurement professionals, this means moving beyond conventional supplier management practices and embracing more fluid, relationship-based engagements with influencers and influencer agencies. It also necessitates a nuanced understanding of contracts, usage rights, and content amplification that may not fit neatly into the standard media buying box.

Strategic Value and Procurement’s Role

One of the key takeaways from the recent influencer marketing webinar was the strategic importance of influencer marketing as both a content generation tool and a distribution mechanism. Brands are increasingly leveraging influencers not just for their reach but for the content they produce. This content is often repurposed across multiple channels, acting as a valuable asset that drives campaigns beyond the confines of the influencer’s social media following.

Keith pointed out that many brands today spend substantially more on paid media to amplify influencer content than on the influencers themselves. “If you’re spending a million dollars on influencers,” he explained, “you might be spending $50 to $100 million on paid media and using that content to influence a much larger audience.” This highlights the need for procurement to understand the broader context of influencer spending — it’s not just about talent fees but about amplifying that content through media buys.

This kind of strategic integration creates an opportunity for procurement to add significant value. Rather than being relegated to a purely transactional role, procurement professionals can contribute by ensuring that brands focus on the entire ecosystem rather than only individual influencer engagements, that contracts cover usage rights comprehensively, and that the procurement process effectively mitigates risks such as brand safety and regulatory compliance.

Challenges in Standardizing Influencer Marketing Procurement

One of the recurring themes in discussions around influencer marketing is the lack of standardization. Unlike traditional marketing avenues, influencer marketing does not yet have established pricing structures or metrics for evaluating success. Influencer contracts can vary widely depending on the scope of work, usage rights, exclusivity, and the nature of the content itself.

Addressing these challenges through a centralized RFP process and clearer guidelines will eventually streamline the brand's influencer engagements. However, it will require significant time and collaboration between procurement and marketing teams.

Moreover, influencer engagements require a careful vetting process. Procurement must evaluate potential partners based on more than just their follower count — the brand safety concerns, cultural alignment, and authenticity of the influencer are critical factors to consider. As Keith emphasized, “Vet properly for creators, not just when you pick them, but also continuously — to ensure no profanity, nudity, political associations, or anything else that could harm the brand.”

This is where procurement can make a real difference by formalizing a process for influencer vetting, negotiating contracts, and setting performance metrics that align with broader business goals. Establishing a standardized template for RFPs that reflects the specific needs of influencer marketing — from SAG compliance for talent to regulatory issues in pharmaceuticals — can help mitigate risks and streamline procurement processes.

Navigating the Complexity: Influencer Agencies and Partnerships

Many brands partner with specialized influencer marketing agencies rather than handle these relationships in-house. These agencies offer expertise not only in selecting the right influencers but also in managing the entire lifecycle of the campaign, from initial contracting to performance analysis. The scope of these partnerships can vary from one-off campaign engagements to longer-term agency-of-record (AOR) relationships.

Influencer marketing is not only about managing contracts; it involves coordinating multiple moving parts, including campaign creative, paid media, content review, and regulatory compliance. “Brands want a seamless process,” Keith explained, “and for many, that means partnering with specialists who can handle all of the nuances involved.”

For procurement professionals, this means understanding the value proposition of these specialized agencies versus managing influencer marketing internally or through broader media agency partnerships. A typical influencer marketing agency engagement might include fees for strategy development, talent management, paid media, and measurement. It’s crucial to evaluate these elements holistically and determine the best fit for the brand’s needs — whether that means hiring an in-house team or partnering with an agency.

Risks and Mitigation Strategies

Influencer marketing, like any form of marketing, carries risks. Chief among these are brand safety, compliance, and cultural relevancy. As brands move into influencer marketing, procurement must address the inherent risks in contracting creators whose content — and public personas — might not always align perfectly with brand values. The potential for influencers to misstep in ways that negatively impact the brand is very real, and vetting processes must be designed to mitigate these risks.

Another key risk is compliance, especially for highly regulated industries like pharmaceuticals and financial services. Keith mentioned how important it is for creators to follow FTC (Federal Trade Commission) guidelines and ensure that content meets all legal requirements before it goes live. Using technology platforms to streamline these compliance checks can help brands ensure that campaigns stay on track and avoid legal issues.

Furthermore, procurement professionals need to understand the implications of usage rights and content licensing. As more brands amplify influencer-generated content through paid media, understanding the legal and financial implications of content usage becomes essential. Influencers are becoming increasingly aware of the value of their content beyond their immediate audience, and brands need to be able to negotiate these rights effectively to maximize their return on investment.

Moving from Transactional to Strategic Engagement

For many procurement professionals, the journey into influencer marketing represents a shift from how they operate today. This shift requires new skill sets, including a deeper understanding of social media dynamics, creator economy trends, and a nuanced approach to contract negotiation.

The first step is education. Procurement needs to fully understand influencer marketing, not just as a line item in a budget but as a key driver of brand growth and cultural relevance. Participating in events like the Procurement Foundry webinars or attending conferences such as ProcureCon or ANA Financial Management is a great way to build that understanding.

The next step is partnership. Procurement professionals need to work closely with marketing teams to develop influencer marketing strategies that align with broader brand goals. By bringing procurement’s expertise in risk management, negotiation, and strategic sourcing to the table, procurement can help ensure that influencer marketing campaigns are not only effective but also cost-efficient and brand-safe.

Finally, procurement must embrace technology. The right technology can streamline influencer selection, contract negotiation, and campaign management. Platforms that integrate influencer vetting, contract management, and performance analytics offer a way to reduce risk, enhance efficiency, and provide transparency into campaign outcomes.

The Path Forward

Influencer marketing represents a major opportunity for procurement professionals to play a more strategic role in marketing operations. By understanding the unique characteristics of influencer marketing — from content creation and amplification to the intricacies of contract management — procurement can help brands leverage this powerful channel more effectively.

The future of influencer marketing is one where procurement and marketing work hand-in-hand, balancing creativity with strategic discipline. With the right processes, partnerships, and technology in place, influencer marketing can become a highly impactful element of a brand’s overall strategy — driving cultural relevance, consumer engagement, and, ultimately, business growth.

Choosing the Right Influencer Marketing Partner: Best Practices for Procurement Professionals

When selecting an influencer marketing agency, procurement teams play a crucial role in evaluating potential partners based on several critical criteria. A structured RFP process can help procurement not only identify but also secure the best-fit agency to drive a brand’s goals. Below are some best practices that emerged from recent discussions and evaluations in influencer procurement.

1. Define Clear Goals: Start by defining what the brand aims to achieve. Whether it’s increasing brand awareness, boosting sales, or enhancing social media engagement, these objectives shape the requirements for the influencer agency. A well-defined goal ensures that both procurement and marketing are aligned on expectations from the start.
2. Research and Specialization: Procurement should thoroughly research agencies, especially those specializing in the brand’s industry or niche. Reviewing case studies, client portfolios, and previous campaign outcomes can reveal if the agency has successfully handled similar brands. An agency familiar with a brand’s space can more effectively navigate the specific challenges and opportunities within that market.
3. Network Strength and Audience Alignment: A strong influencer network across platforms (Instagram, TikTok, YouTube) is essential. Agencies should have connections to influencers who align with the brand’s target audience. Procurement should confirm that the agency has relevant and reliable connections that resonate with the intended consumer demographic.
4. Performance History and Track Record: Assessing an agency’s past performance is vital. Look for documented success in previous influencer campaigns, paying attention to client testimonials and case studies. A proven track record demonstrates that the agency can execute strategies effectively and produce measurable results.
5. Strategic Approach: Finally, a good influencer agency offers more than just matchmaking services; they bring creative solutions and comprehensive campaign strategies. Procurement should evaluate how the agency plans to execute the campaigns and amplify influencer content through paid media. Agencies that proactively present innovative strategies tend to be more effective partners.