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Influencer Marketing Vs. Paid Social: Where Should You Invest?

influencer-marketing-vs.-paid-social:-where-should-you-invest?
Influencer Marketing Vs. Paid Social: Where Should You Invest?

Everyone loves a good rivalry, and the digital marketing world is no different. SEO vs. SEM. Email vs. SMS. And increasingly, many marketers find themselves debating: influencer marketing vs. paid social—which deserves more of my budget?

Here’s the truth: it isn’t an either/or situation. The brands seeing the strongest ROI aren’t choosing sides—they’re strategically integrating both influencer marketing and paid social to create full-funnel strategies that engage consumers at every touchpoint.In the modern buyer’s journey, consumers don’t experience your brand in silos. They see your paid ads, watch creator content featuring your products, engage with your organic social, and discuss your brand in relevant communities—often all before they’ve ever made a purchase. The question isn’t which channel deserves your investment, but how to blend these channels to create a cohesive experience that converts.

Paid social: what it’s good for (and where it falls short)

Paid social media has long been considered the backbone of digital marketing strategies, and for good reason. When you need precision, scale, and quick results, few channels can compete.

The power of paid

Unmatched scale and reach

With platforms like Facebook and Instagram each boasting billions of monthly active users, paid social allows you to reach massive audiences quickly. This makes it particularly valuable for brand awareness campaigns and new product launches when you really need to make a splash.

Laser-focused targeting

The targeting capabilities of platforms like Meta, TikTok, and LinkedIn are unparalleled. You can zero in on specific demographics, interests, behaviors and even create lookalike audiences based on your existing customers.

Speed and agility

Need to test a messaging angle or creative concept? Paid social lets you get statistically significant results in days, not weeks. This rapid feedback loop allows for quick optimization.

Predictable scaling

Once you find a winning ad set, you can typically scale spend while maintaining relatively consistent CPAs—something that’s much harder to achieve with influencer campaigns alone.

The challenges of paid

Despite these strengths, paid social faces growing challenges:

Rising costs

In just five years, the average CPM on Facebook ads has increased by 80%. For many brands, particularly in competitive verticals like beauty and fashion, these rising costs have made paid social less sustainable as a standalone channel.

Ad fatigue and banner blindness

As consumers are bombarded with more ads than ever, engagement rates continue to decline across platforms. Many users have developed “ad blindness,” scrolling past sponsored content without even registering it.

The authenticity gap

In an era where 81% of consumers say that authenticity and trust in a brand are crucial for making a purchase decision, the clearly promotional nature of paid ads can be a limitation.

The authenticity gap

Platform volatility

From iOS privacy changes to algorithm updates, paid social platforms regularly introduce changes that can dramatically impact performance overnight—often with little warning to advertisers.

Influencer marketing: authenticity at scale

While paid social has been working to refine its targeting algorithms, influencer marketing has evolved from an experimental tactic to a cornerstone channel for forward-thinking brands.

The creator advantage

Trust and credibility

69% of consumers trust recommendations from individuals (even if they don’t know them personally) over branded content. What does this mean? Content creators have built relationships with their audiences that brands simply can’t replicate.

Content creation engine

High-quality creative is the biggest performance driver across all marketing channels. Working with creators gives brands access to diverse, authentic content at a fraction of the cost of traditional production.

Mid-to-lower funnel impact

While often viewed primarily as an awareness play, influencer marketing increasingly drives consideration and conversion. In fact, 74% of consumers report having purchased a product because an influencer recommended it.

Community building

In an era where direct relationships with customers are increasingly valuable, creators help brands build actual communities rather than just audiences.

The creator challenges

That said, influencer marketing isn’t without its limitations:

Scalability concerns

Managing relationships with dozens or hundreds of creators requires significant resources and specialized tools. Without the right systems in place, influencer campaigns can quickly become unwieldy.

Measurement complexity

While attribution has improved dramatically in recent years, measuring the full impact of influencer campaigns often requires more sophisticated approaches than the straightforward metrics of paid social.

Variable results

Creator performance can vary widely, and what works with one influencer might not translate to another, making optimization a more nuanced process than with paid campaigns.

How the most successful brands use both

The most sophisticated digital marketers don’t view influencer marketing and paid social as standalone strategies—they see them as complementary parts of a unified approach.

Amplifying authentic content through paid

The most noteworthy strategy that has emerged in recent years is using paid social to amplify creator content. This approach, called creator licensing, combines the authenticity of influencer content with the scale and targeting of paid media.

Here’s how it works:

  • Create: Collaborate with influencers to develop authentic content
  • License: Secure rights to use this content in paid channels 
  • Amplify: Distribute the content through paid social using the brand’s targeting and budget
  • Optimize: Test different creator assets against each other to find winners

Creator licensing is particularly powerful because it addresses the key weaknesses of each channel. It gives paid social the authenticity it lacks while providing influencer content with the scale it needs.

Real-World Success: Liquid I.V.’s Integrated Approach

Popular hydration brand Liquid I.V. is a great example of what can happen when you combine these channels effectively. The brand works with a mix of micro and macro influencers across fitness, wellness, and lifestyle categories to create authentic content showcasing their electrolyte drink mixes.

Rather than relying solely on the organic reach of these posts, Liquid I.V. licenses the top-performing content and runs it as ads—both from the brand’s account and, where appropriate, directly from creator accounts.

The full-funnel integration

Beyond content amplification, leading brands are developing sophisticated strategies that leverage both channels across the entire customer journey:

  • Top of funnel: Use broad-reach paid social and macro-influencers to drive awareness and reach new audiences.
  • Middle funnel: Deploy micro-influencers and community-focused creators to build credibility and consideration through detailed product education and authentic reviews.
  • Bottom funnel: Use retargeting ads featuring creator content and testimonials to drive conversion among warm audiences.
  • Post-purchase: Engage existing customers through community-building creator partnerships and leverage their UGC in retention-focused ads.

Budget recommendations: when to lean in

The optimal allocation between influencer marketing and paid social will vary based on your brand’s category, maturity, and objectives. But there are clear scenarios where leaning more heavily into one or the other makes strategic sense.

When to invest more in influencer marketing

New product launches

When introducing something new, authentic creator endorsements can generate buzz and credibility that paid advertising simply can’t match.

Trust-dependent categories

In verticals where purchase decisions hinge on trust—like beauty, health, parenting, and financial services—creator relationships are particularly valuable.

When you need fresh creative

If ad fatigue is impacting performance and you need a large volume of fresh content, ramping up creator partnerships is often more cost-effective than traditional production.

Building community

When your strategic focus is on building community and advocacy, influencer partnerships should take precedence.

Since 2020, the influencer marketing market size has more than tripled worldwide. Now recognizing the unique strategic advantages, 86% of US marketers plan to partner with influencers in 2025.

When to scale paid social

During high-intent seasons

During peak shopping periods (like Black Friday or back-to-school), when consumer intent is high, increasing paid social spend to capture existing demand often makes sense.

When you’ve found winning creatives

Once you’ve identified creator assets that perform exceptionally well in paid channels, scaling spend behind them can drive strong returns.

For time-sensitive promotions

When you need to drive immediate action around a limited-time offer, paid social offers unmatched speed and precision.

Retargeting and conversion

For lower-funnel activities targeting warm audiences who have already engaged with your brand, paid social typically delivers strong efficiency.

Integrated budget planning

Rather than planning these budgets separately, consider these best practices for integration:

Content creation allocation

Dedicate 15-25% of your influencer budget specifically for content creation that will fuel paid social.

Testing budget

Set aside 10-15% of paid social budget to test new creator assets against your control ads.

Seasonal flexibility

Plan for budget shifts based on seasonality, with greater emphasis on influencer activities leading up to key shopping periods, then shifting to paid amplification during peak conversion windows.

Performance-based allocation

Implement a fluid model where budget can flow between channels based on real-time performance data.

Pro Tip: Want to stretch your creator content even further? Test it to new audiences and measure engagement differences. This approach often reveals surprising insights about which creator styles resonate with different customer segments.

Key Takeaway: Influencer marketing vs. paid social is the wrong question

The most successful digital strategies today don’t pit influencer marketing against paid social—they integrate them into a cohesive approach that leverages the strengths of each.

Creators bring the authenticity, trust, and community that consumers increasingly demand. Paid social delivers the scale, targeting precision, and measurement capabilities needed to turn that trust into business results.

Together, they address the full spectrum of consumer needs throughout the buying journey—from discovery and education to conversion and loyalty. So, the question isn’t where to invest. The question is how to combine these powerful channels to create marketing that consumers actually want to see in their feeds, trust enough to act on, and feel compelled to share with others.

Want to combine the trust of creators with the targeting power of paid social? Let’s build a strategy that does both—and does it better.

This article originally appeared on Grin.co and is available here for further discovery.
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