More MSMEs turn to influencers to drive growth

By Almira Louise S. Martinez, Reporter

MORE MICRO, small and medium enterprises (MSME) are tapping influencers to boost revenue and business growth, as content creators continue to gain traction in the Philippines, according to marketing firm Blogapalooza, Inc.

“Businesses are also starting to see that creators are becoming an integral part of marketing,” Blogapalooza Chief Executive Officer Hazel Bernadette B. Gapuz told BusinessWorld via Zoom. “The way that consumers decide has already evolved.”

Blogapalooza is a Philippine-based influencer marketing and talent management firm.

Unlike traditional advertising that relies on celebrities, influencers can build more personal connections with audiences, making them particularly effective for small brands seeking to strengthen their online presence, Ms. Gapuz said.

“Consumers trust content creators, who are like their peers,” she said. “That’s their edge over traditional celebrities because when you’re digital‑first, you speak internet language.”

“The traditional way of doing advertising won’t work anymore,” she added.

As demand for influencer marketing grows, Ms. Gapuz noted that the industry remains fragmented and largely unstandardized, particularly in terms of pricing.

“Creators are starting to think of themselves as media entities,” she said. “Some of them really professionalize it — even to the point of hiring a team or setting up their own studio.”

She said the influencer market is becoming more professionalized, with many of them investing more in their businesses. “It just makes sense that the cost is increasing.”

Despite rising fees, many MSMEs continue to invest in influencer marketing because of its results‑driven nature.

“Smaller businesses obviously don’t have a lot of money to pay these big names,” Ms. Gapuz said. “They need sales right away, or if sales don’t come, they need a specific path to justify the influencer spending.”

Some small brands are also turning to in‑house creators or collaborating with influencers through X‑deals, where content is exchanged for products or experiences instead of cash.

“While costs are the primary barrier to most small businesses, there are creative ways of going around them,” she said.

Data from consumer intelligence firm Meltwater showed that influencer marketing spending in the Philippines reached $109 million in 2024, up 15.9% from the previous year.

Influencer advertising also accounted for 5.6% of total digital advertising spending in the country.

“It’s a massively growing industry,” Ms. Gapuz said. “We’ve seen how much it has grown over the past couple of years. There’s a lot of potential, even if the industry isn’t fully mature yet.