According to a social media study, 42% of marketers consider Influencer Marketing to be their top ROI-generating marketing strategy, and 89% agree that it’s effective. With the growing rate of social media interactions, and the ever-increasing influence of market leaders, opting for an influencer marketing strategy could help your business to grow.
So, what is influencer marketing? How could your business benefit from it?
This article will explain the strategy in basic terms, and get you up to speed.
What is an Influencer?
If you’ve spent more than a few minutes on a social media site, you’ll likely have come across the term ‘influencer’. But what does it mean? Literally, an Influencer is simply a person that has the ability to influence or affect others.
Within the context of the modern internet, an Influencer is someone with a substantial following on one or more social media platforms, who earns by promoting the goods or services of others on their platform/s.
How does Influencer promote your product?
Typically, an Influencer promotes a brand’s product through a post of some kind – a photo and accompanying caption, a ‘story’, or a video. This promotion might be a standalone piece of content, such as an Instagram post, or it might be integrated into a piece of their own content, like an ad read during a YouTube video.
The nature of the promotion is entirely dependent on the agreement the brand and Influencer come to. Each Influencer has their own rates and conditions, usually depending on the size of their following. A larger following will most likely mean a larger fee. It’s also not guaranteed that every Influencer will respond to your propositions; nearly every brand with an online presence utilises Influencer Marketing, so some Influencers might want or need to be picky.
A brand might approach an Influencer from a relevant field; the closer the Influencer’s fanbase to the brand’s target demographic, the better the promotion will likely perform.
Why does it work?
Influencer Marketing’s effectiveness is due to the relationship between Influencer and audience. The Influencer has, and continues to, work hard to cultivate a following, to grow their fanbase. Essentially, they’ve done the hard work of building an audience – now your brand can pitch its products to it.
Influencer-fan relationships are often very different to brand-customer relationships. Followers of an Influencer are there not for a service, but for connection. They admire the projected personalities of the Influencers and often see them as friends rather than traditional celebrities.
According to the Influencer Marketing Hub, 70% of teenage YouTube subscribers say they relate to YouTube creators more than traditional celebrities and 91% of millennials trust online reviews as much as friends and family.
Why it’s worthwhile engaging in Influencer Marketing
Influencer Marketing works, and it has the stats to prove it: 50% of consumers will take some action after reading a positive review and businesses are making $5.20 for every $1 spent on influencer marketing.
Influencer Marketing is highly flexible, as different Influencers will have different rates, often dependent on the size of their following, so it’s easy for even a start-up brand to get their foot in the door of this strategy.
Influencer Marketing utilises the already-established audiences of the Influencers you work with, meaning you can reach outside your own established potential customer base, all while being endorsed by the trusted and well liked Influencer. Their approval will assure their audience of your product’s quality and worth.