Every minute, there are 174,000 people browsing Instagram, 481,000 tweets and 973,000 Facebook logins. This means that there is more content than ever just floating around on the Internet.
Bigger brands have historically spent millions of dollars on traditional marketing such as placing ads, billboards, commercials etc. Now, there is a new form of marketing rapidly picking up pace termed as, influencer marketing.
The influencer marketing space is expected to reach $22 Billion by 2022, up from $6 Billion in 2019. Businesses are spending 25% of their total marketing budgets on influencer marketing.
‘Business insider’ claims that influencer marketing will grow exponentially (@40% p.a.) over the next 5 years.
As Ad blocking software’s remain trending and consumers shifting away from traditional marketing, influencer marketing will always be on the rise. After all, people care about what the influencers say rather than brands.
Katie Paulson, VP, Influencer marketing at RhythmOne, said that in 2018, they observed that more of their advertisers activated multi month and even year long campaigns in an effort to deepen brand ambassador partnership and form on-going relationships with influencers who were key to their campaign’s success.
Let us understand the reasons which have allowed influencers to grow by leaps and bounds.
1. Target the right audience
In older days, the whole family would flock to a television set and consume content along with advertisements. Gone are those days. The target audience today is distributed among so many platforms that targeting each and everyone of them is nigh impossible. This has made it considerably harder for brands to target their right audience. This problem has largely been solved by using influencer marketing.
Let’s take the case of a phone manufacturer. Influencer marketing and word of mouth approach has worked wonders in the market. Leveraging influencers for marketing provides the assurance of targeting the right audience as all the followers of the said influencer would also be interested in mobile phones.
The key here is to make sure that the influencer’s views aligns with the goals of your brand. Have there been previous posts from the influencer which does not relate to your brand identity? Or is there a chance that the influencer will post such posts in future?
These points should be carefully examined before assigning influencers.
2. Leverage Influencers Trust
It has been seen that people trust more on the words of the influencers they follow rather than what brands say about themselves. This is due to the fact that the influencers have built their trust over time. You can leverage this trust and use it as a medium which allows the consumer to buy ‘Your’ product.
Most Influencers have their lives centered around the niche they operate in and this is the reason people interested in the same niche look up to them. The influencers have built up their following because the audience deems them to be a reliable source of information in their respective domain and you have to use this trust as the means to send your product out in the audience’s hands.
The primary concern of brands now-a-days is fake followers. Some influencers have been gaming the system by purchasing fake or bot followers. You can use tools such as FollowersAnalysis to check the authenticity of influencers before you make any investments towards them.
3. Increase Conversion Rate
Influencers can help you in increasing the conversion rate towards your brand. Researches have shown that 7 out of 10 people purchased products based on peer reviews rather than celebrity endorsements. If an influencer specializing in your industry recommends your product, you can be sure that this recommendation will go a long way in driving your sales.
Let’s take the example of a YouTuber, Marques brownlee aka MKBHD. Currently he over 10.3M subscribers and he primarily reviews tech products. He has garnered his subscriber base by creating mind blowing content and providing genuine advices.
Let’s say he is reviewing two devices and recommends one over the other, which device do you think his audience will buy?
Influencer marketing can go a long way in dramatically increasing your conversion rates.
4. Get Better ROI from Influencer Marketing
89% of marketers say influencer marketing ROI is as good or better than other marketing channels and 65% of marketers plan to up their influencer marketing budgets in 2020. The considerable value that influencer marketing carries now a days is simply unmatched.
According to Inc.com, influencer marketing delivers 11x ROI over all other forms of digital media. Compare this to the $2 that brands make when they invest $1. This metric alone proves the tremendous ROI that influencer marketing provides.
Whether your brand is new or decades old, you simply cannot overlook the impact of influencer marketing. I strongly believe that influencer marketing is the future of advertising and it will remain so in the years to come.