The Influencer Economy Hurtles Toward Its First Recession

The influencer industry has operated in boom times. As more Americans have taken their cues from social media about where and what to buy, brands started to use their marketing budget on influencers.

But if the world is going to face a recession, the influencer lifestyle will come to a halt. It's not clear what the lasting impacts will be.

• There is less money to go around. Since March, about a third of influencers were already seeing fewer collaborations.
• This is also an awkward time to advertise, while so many are unemployed or facing a life-threatening illness. Brands don't want to alienate their market.
• Some retailers are doing better, while other online retailers may not last. Categories like fashion, beauty, and luxury will likely suffer first and hardest.