Influencer contracts are getting longer and quieter

Brands are signing influencers to twelve-month contracts with fewer posts, saying continuity does more for trust than volume.

Customers have welcomed the change. "Anything that shortens the time between order and delivery is good for us," said Mei-Lin Chao, whose distribution business employs about 120 people and works with Cobalt Payments in three regions.

The project had stalled twice before, most recently last year, when a change in leadership at Cobalt Payments put several initiatives on hold. This time, the company says, the budget is approved and the contracts are signed.

The move comes as the sector adjusts to a year of slower growth. Analysts at the Northgate Survey estimate that spending in the category rose just 3 percent in the first half, compared with 11 percent a year earlier.

What the new deals look like

"The companies that will come out of this stronger are the ones that treated the slowdown as a chance to fix their cost base, not as a reason to freeze," said Mei-Lin Chao, who follows the industry for the Northgate Survey.

Executives at Cobalt Payments said the plan will be rolled out in three stages, beginning with its largest markets. A second stage, covering smaller regional units, is scheduled for the second quarter of next year.

Not every investor is convinced. Shares in Cobalt Payments slipped 2 percent after the announcement, with some analysts questioning whether the projected savings of $1.1 billion a year are achievable on the stated timeline.