What can excessive spending on mega influencers lead to for small brands?

Excessive spending on mega influencers can create significant financial strain on small brands, leading to a decrease in marketing budgets for other initiatives. When a sizable portion of a brand's marketing budget is allocated to collaborating with high-profile influencers, there may not be enough remaining funds to effectively support other marketing efforts such as local promotions, social media advertising, or community engagement. This can hinder the brand's ability to diversify its marketing strategy, ultimately reducing its reach and effectiveness.

Additionally, while mega influencers have the potential to offer extensive visibility, the high costs associated with them mean that smaller brands must make tough choices about where to allocate their limited resources, often prioritizing influencer partnerships over other important areas of marketing. This can lead to a loss of potential customer interactions and engagement opportunities that smaller, more targeted initiatives might provide.