The market dynamism is changing due to the exponential growth in technology, consumerism and information. There has been a great leap in the market components in recent years. Of all the contemporary concepts in marketing, Influencer Marketing is one of the buzz concepts.
Before understanding the concept of Influencer Marketing, we must briefly know about Influencers. Influencer is someone who has:
- The ability and power to change the decisions of others by motivating them with their position, authority, knowledge, position and relationship with the followers.
- A niche peer group or reference group with whom s/he engages regularly and shares ideas and thoughts.
Anyone can be an influencer and anyone can indulge in influencer marketing. The overwhelming growth and popularity of social media platforms have allowed people to participate and communicate with audiences across the globe. Some of the top influencers dominating social media are:
- PewDiePie – Youtuber
- Chiara Ferragni – Fashion Blogger
- Murad Osmann – Travel Influencer
- Ryan Kaji – Kid Influencer
- Steve McCurry – Photography Influencer
Market analyst has suggested that the influencer marketing, in 2019, was worth $8 billion and it is expected to be valued $15 billion by 2022. Platforms such as Tik Tok have 1 billion active users and Instagram has 500+ millions daily users. In 2019, there are 500,000 active influencers on Instagram.
Influencer Marketing can be defined as a type of social media marketing which involves brand endorsement and product mentions from influencers. Influencers use the trust factor and the relationship with the online followers to endorse their collaborations. It is considered effective as it involves a niche audience and approach to marketing is very personal and involves trust factor. Some of the benefits of Influencer Marketing over mass marketing are:
Benefits of Influencer Marketing
Builds Trust and Reflects Authority
Influencer has a circle of close and niche followers where sharing of content is very personalized. The endorsements and product mentions by influencers are solely dependent on the trust factor. Influencers promote the products and services with full credibility and authority. For instance, a photographer reviewing a camera is more credible and trustworthy and also the photographer has full confidence and authority over the product while endorsing. In an article by Forbes, 92 of consumers trust an influencer more than a traditional advertisement.
Keeps the buzz of the brand
They are always communicating with their audiences hence it is essential for influencers to have a regular knowledge regarding new trends and movements. Influencers, therefore, are very effective in the promotion of recent developments and market trends. Influencer marketing is effective when one wishes to endorse and promote the new product and services line to the targeted audience. In one study, it has shown that 85 % of today’s generation (GenZ) use social media to learn about new products.
Accelerates purchasing decisions
Purchasing decisions is highly influenced by the quality of the product. Similarly, different audiences look for the different factors while making purchasing decisions. Influencer Marketing is effective in accelerating purchasing decisions because most of the influencers review the products through their channel. They provide their review about the product after consumption or use and all the queries are addressed during the product review. The purchasing decision dilemmas are addressed by the influencers. The trust factor allows the credibility of the review or vice versa, accelerating the purchasing decision as the audience has someone trustworthy who has used the product. In one of the reports, roughly 40 percent of respondents have made a purchase after seeing a social media influencer.
Conscious and rational advertising
Influencer marketing is a contemporary approach to advertising. Influencer marketing provides a strategic front to advertising. Before, print advertisements were a tool for marketers to promote their products and services. Now, audiences are more practical and conscious with the choices and with the decisions. It cuts all the middle approaches to blind advertising and promotes conscious and rational marketing.
High Return on Investment
Influencers are a comparatively cheaper medium for advertisement and endorsement activities. The effectiveness of the advertisement is higher for influencer marketing as it directs to the targeted audience. The return on the investment in this can be very high. In a survey, every $ 1.29 spent on beauty influencers brand generates $11.38 in revenue.
Influencer marketing can have a high ROI. Also, the effectiveness of this marketing is highly dependent on the ability of influencer. With most of the advertising tactics, there are limitations i.e. you pay for the package. For an influencer marketing, a reach of a campaign is unlimited as public domain is unlimited i.e. endorsement can be shared, promoted and can go viral. It is easier in influencer marketing to attract the customers attention via creative content creation.