Influencer Marketing – An Essential Marketing Tactic

by Shawn Alex on November 03, 2020
influencer marketing

Influencer marketing is a common practice of modern times to gain profit and better results by businesses; and for all the right reason. Have you ever been attracted to a product just because your favorite celebrity liked it? Or tried a new service because your most followed influencer gave a thumbs up for it! This is all influencer marketing. Brands use influencer marketing to create recognition about a product or a service. As followers religiously praise any celebrity or believe everything they say, businesses find it as an opportunity to achieve maximum engagement from the audience.

 

What Is Influencer Marketing?

what is influencer marketing

Anything that has an influence on the people and is used for the growth of revenues or exposure by a brand falls in the category of influencer marketing. That being said, influence can come from a variety of places. It could arise from a person, a group of people, band, a place or even movie stars. For instance, brands hiring a famous celebrity to speak positively about their products because of the high respect and huge fandom.

 

Why Companies Choose Influencer Marketing?

Many businesses hire famous celebrities as their brand ambassadors and to engage audience on various influencer marketing platforms. Marketing is similar to word of mouth marketing to an influencer crowd, but it does not rely solely on personal recommendations. Besides that influencer marketing is also different from other types of marketing because it appeals majorly to the needs of the influencer rather than the customers.

Companies strive to bring famous celebrities into the enticing web of their product experience and try to give influencers the due respect through positive messages, free products, endorsement, making them brand ambassador or using their messages or photos to gain popularity.

While influencer marketing is a win-win situation, the only big downside to marketing influencers is that it is not as controllable as conventional marketing.

Although some influencers just contribute to a product's positive reputation, influencers who face legal issues or fall out of the public light can have a negative effect on the likelihood of success of a product. Marketers must plan to deal with negative fallout if their goods are misrepresented or rejected by influencers they use.

 

What Are The Benefits Of Influencer Marketing?

benefits of influencer marketing

When it comes to generating positive revenues and increase ROIs influencer marketing remains as one of the most substantial tactics. Researchers suggest that 90% of the marketers are convinced about the ability of influencer marketing to generate more and relevant ROI as compared to other marketing practices.

 

Example of Influencer Driven Marketing

example of influencer driven marketing

One practical example of influencer marketing generating dollars in Cristiano Ronaldo’s association with the popular brand Nike. His Instagram posts and similar advertisements has generated up to $500M value for Nike. In 2016, Ronaldo posted on social media 1,703 times total. 2.25 billion Social interactions (likes, comments, shares, retweets and video views) were created by those posts. The outcome: $499.6 million in media value for Nike from Ronaldo’s tweets.

A common question arises; why is influencer marketing so successful as compared to other marketing practices?

 

Why Influencer Marketing?

More and more people are engaging themselves in influencer marketing and the crowd is more likely to follow what their favorite celebrity does. People would rather choose a product advertised by their inspiration than to trying something themselves for the first time. Marketers are investing more in building strong influencer marketing strategies.

 

Builds Trust and Strong Connection

Many influencer marketing companies emphasize on having robust relationship with the audience in order to grow better in the business world. Since, a common psychology is to trust people whom we have some sort of association with rather than believing on what strangers are implying. Now imagine the impact of words coming from a celebrity you have been following religiously since years!

Audience understands that if their favorite celebrity or a renowned star is promoting a product they are obviously betting their name on it putting their credibility at stake. This is a huge thing for the celebrity and the followers themselves. This also creates an understanding that there is something valuable in the said product which made their social media sensation stick to it.

 

Increases Brand Awareness

Influencer marketing can dramatically broaden your scope and positioning online, as noted. More about your brand, your background, who you are, and the solutions you offer, social users will start to know more.

The key to leveraging the strategy of influencers is to ensure that you have useful content that also contributes to their social media reach, ensuring value on both sides.

 

Reaches the Relevant Audience

As you might say that this is all a part of Big Plan. Digital media marketers and influencer marketing companies target their choice of celebrity specifically to their niche. For example, Ronaldo being an athlete is targeted to form association with famous sports brand Nike. This gives a big chance to brands which would have been otherwise impossible through conventional marketing practices.

Through relevant influencers, you place your content in front of the social media users that are already attracted to your business niche. You don’t need to spend hundreds of dollars to market through multiple platforms just to reach the right audience.

 

Light on your pocket

The 21st century generation is not only smart but also understands the importance of saving things. Starting from environment saving campaigns, reducing pollution to cutting up excessive costs on everyday practices everyone seems to be a little wiser. This is where influencer marketing comes in handy too.

This does not mean famous celebrities will speak for your brand for free but the option is to begin with micro-influencers who can start from as low as $500 for a sponsored post. In addition to this, they also operate very frequently in exchange for free goods or services, or sometimes as affiliates. So marketing influencers would certainly go easy on your pocket.

 

MSMEs to MNC

Starting from micro to small medium enterprises reaching up to large Multi-national companies, influencer marketing is for all if you know how to use it effectively. As long as your product or service has something beneficial or influential, you are in the game.

It does take some planning, however, to find the influencers that are best suited to your needs. Based on scope, category, interaction, etc., related influencer marketing agencies will help you find and communicate with the right influencer.

 

How Do You Measure Influencer Marketing? 

how do you measure influencer marketing

 Anything that requires some investment demands a payback. This is what businesses are all about. When it comes to influencer marketing, determining the efficiency of the results seems like a tough challenge but it is not entirely impossible. Here are certain ways through which you can keep a close eye on your influencer marketing campaign and its results.

 

By Discovering Campaign Reach

The campaign you have spent hundreds of dollars on in order to engage the audience, needs to be monitored. With a goal to increase the reach through specific marketing tactics, you can utilize certain metrics to discover how far your message has travelled.

You can begin by checking the number of impressions generated by the brand post from your influencer. This includes finding the number of views, likes and comments.

You can also discover campaign reach by identifying the number of followers your influencer has. A greater number of followers pertain to increased probability of engagement thus increasing the chances of reaching your brand campaign to the right ears.

Another way is to monitor the traffic that has landed on your website through the influencer’s link.

 

Determining Campaign Engagement

If a campaign fails to engage the audience then it is bad news. You just don’t need views, you need conversion and successful leads. To get a better idea of the ROI you can also find out the cost per engagement. Post engagements are seen in the form of likes, clicks, comments and shares on a specific post.

The greater the amount of comments, clicks and shares on the story, the stronger the interaction. This demonstrates that the audience has shown great interest in the content.

To give you an idea of the total number of engagements on the posts, you can track these metrics and place them in an excel sheet. You may easily divide the overall cost by the overall engagements to find the cost per engagement.

 

Determine the ROI

This is the most essential and helpful way to determine whether your influencer marketing was a win or a fail. You can identify the number of sales generated through a specific campaign and get a rough idea of your ROI. Determining ROI, based on the huge traffic online seems like a tough job but there are some top recipes to do that.

Affiliate links can be created and sent to your influencers. You'll be able to track them if people click on these links and make a purchase. The influencers usually earn a commission for any sale they produce.

You can also take help from Google Analytics to monitor online sales. You can set up an "Event" and see from the influencers' posts which clients have visited your website. In terms of revenue, this will allow you to find the ROI of your influencer marketing campaign.

Promo codes have a dual objective. Obviously, they offer the customers special discounts on their favorite products, the first being. The second reason, however, is even more important. You may use them to monitor sales resulting from the marketing of influencers. Using the codes, find out the number of clients who made a purchase and then calculate your ROI using this detail.

 

How to Do Influencer Marketing?

Just because you have begun a business or have a limited budget does not mean you have to sit back and watch other brands hiring influencers. The truth is, you can make influencer marketing as a part of your business strategy on almost any budget. With an opportunity to grow and gain profits who wouldn’t want to give influencer marketing a try?

 

Begin with a goal

Starting without a destination is just a waste of time and energy and this is same for influencer marketing. To create an impact with your idea you need to develop a strong plan, a mindful strategy by keeping a vision in your mind at all times.

By creating a goal you will get help in figuring things out. Starting from budget, to deciding which kind of influencers you want to work with, a goal can help setting everything straight.

 

Research through the Market

Finding the right influencer for your brand is just like finding the perfect suit for a big occasion. It makes your first impression and helps you gather attention. You need to remember that the influencer you choose for your brand should depict the brand image in the positive light and must be relevant to the product/service you offer.

 

Give Substantial Compensation

Not giving enough appreciation or compensation to your influencer could be one of the biggest mistakes your business could make. This could come as a trouble especially when you have a limited budget at your hands. But with a help of an influencer marketing hub you can get a suitable budget plan devised according to your needs.

 

How to Use Social Media for Influencer Marketing

Instagram influencer marketing is known as one of the most social media influencer marketing strategy but there are other significant channels too. As per a research by Adweek the influencer marketing industry is estimated to attain a value of $10 billion by the year 2020.

Moreover, influencers are now using multiple channels such as Snapchat, YouTube, TikTok, and Twitter to create awareness and entice audience.

Hiring an influencer marketing firm, which will do the research and coordination for you, is a smart bet for companies who need a larger pool of influencers. Besides that, the company can also help you discover the right social media platform according to the type of your business and audience.

social channels for influencer marketing

As much as the choice of right social media platform is important it is also imperative to generate content that is specific to each social media platform. Depending on the choice of your social media platform for influencer marketing you can modify the quality and quantity of content you present on each channel.

content formats for influencer marketing

This could be a tough thing to catch on but with a supportive and experience influencer marketing company at your bay, you can easily develop a killer strategy to present your brand in the best possible light. Especially when you own an e-commerce store you need to hire influencers that can speak about the authenticity of your products.

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