The influencer marketing industry reached the soaring heights of $13.8 billion in 2021, and it is expected to break all records by soaring to 16.4 billion in 2022.
Pretty amazing, right?
But what’s so special about influencer marketing that makes all other promotional mediums look small? What influence (pun intended) does it hold over customers as well as brands? How does it work?
Let’s unpack the power and effect of influencer marketing.
What is influencer marketing, and how does it work?
Answer this: who do you listen to before buying a new product—a TV ad or a friend’s recommendation? It’s an obvious choice.
People are more likely to purchase a product after a friend’s recommendation than after a celebrity endorsement with a rehearsed performance. That’s how influencer marketing works. It’s word-of-mouth gone digital.
Influencer marketing gives brands access to an already established following, allowing them to leverage social proof. In return, they provide creators with monetary incentives, product samples, or both, creating a mutually beneficial collaboration.
Why is influencer marketing effective?
Broadly, there are two influencer marketing strategies, qualitative and quantitative. Both are effective for brands for a whole host of reasons.
1. It creates brand awareness
One of the main reasons behind the success of influencer marketing is the amount of organic visibility it brings to the brand. Influencers advocate for the brand to their audiences, and this results in increased visibility and awareness.
2. It generates native content
Advertising through traditional channels like TV, posters, etc. is becoming irrelevant because they seem staged and unreal. Also, customers, these days don’t trust messaging spread through the brand’s own social media. However, when one sees a well-known face using the brand, they believe it is genuine.
3. It helps in creating new content
When brands collaborate with influencers for promotions, they are also, in a way, outsourcing content creation. Every creator has a different style, so they can create unique branded content. And more unique content equals more attention from customers.
4. It validates the brand
Customers are smart. Most of them are able to see through the brand’s promotional ads, talking highly about its product. On the other hand, when an influencer talks about the effectiveness or usability of a product, users consider it real and honest. This helps in validating the brand’s value in the eyes of customers and generates more leads.
5. It increases brand lift
Influencers have a following on social media. So when they post about a product, their followers usually visit the brand’s page and explore more about it. This increases the reach and engagement of the brand.
What not to do in influencer marketing?
As powerful as influencer marketing is, it can be tricky when it comes to influencer discovery. Avoid these mistakes when looking for creators:
1. Don’t just look at the follower count
An influencer’s value is so much more than the number of followers he/she has. What type of content do they post? What’s their engagement rate? What is their niche audience? These factors are important too. So instead of just looking at the follower count, check whether the influencer’s content and niche overlap with your brand.
2. A celebrity may not always be a good influencer
People may follow a celebrity just to stalk him/her every move, but they may not actually listen to his/her own opinion. Also, a celebrity endorsing a brand is almost equivalent to a TV ad. This is the reason brands are investing more in nano and micro-influencers. They have a personal connection with their followers, which has a far greater influence than a famous personality.
How to find the right creators for influencer marketing?
There is a long route of maintaining an influencer database, tracking their performance on social media, reaching out to them, negotiating prices, and whatnot. The shorter route is using an influencer marketing platform like DYT.
We have a large database of influencers from all kinds of niches to choose from. All you have to do is specify your campaign requirements, quote the price, and the DYT creator community is at your fingertips. The platform completely eliminates the hassle of back-and-forth negotiations and the disparity in content expectations.
Influencer marketing is both powerful and effective.
No doubt, influencer marketing is a powerful marketing strategy. But it yields the best results only when everyone involved (the brand, the influencer, and the customer) mutually benefit from it. Use these 5 tips to get your influencer marketing right.