Influencer marketing has emerged as one of the most popular and effective forms of social media marketing.
Influencers are people with sizable social-media followings who can influence their followers’ behavior as consumers.
Influencers have become an essential part of digital marketing in recent years. With the incredible growth of social media, the role of influencer marketing has increased manyfolds. Infact, it has become a necessary marketing strategy.
It has been found that people are more likely to trust a recommended brand than a brand without any recommendation. Also, they would believe even if any such recommendation comes from strangers.
Who are influencers?
Influencers are individuals who have got a huge following on social media platforms such as Instagram, YouTube, and Facebook etc. They can be bloggers or travellers or college students or motivational speakers. These individuals engage with their followers and nurture them on regular basis. They have the ability to sway the purchasing decisions of their followers because they can relate to them and trust their word.
Prospects of influencer marketing
According to a report, Influencer Marketing (IM) has reached a value of 16billion US dollars globally in 2022. The phenomenal growth was being driven by advertisers recognising the power of working with trusted creators to reach their target audiences. According to the INCA-e4m Influencer Marketing Report 2022, the Influencer Marketing Industry is currently valued at Rs 1,275 crore, and will grow at a CAGR of 25% in the next 5 years, with a billion-dollar market in India alone, according to Exchange4media.com
Influencer Marketing, a hybrid of old and new marketing
Werner Geyser, founder of Influencer Marketing hub, explained the definition of influencer marketing stating that Influencer Marketing is a hybrid of old and new marketing tools. It takes the idea of celebrity endorsement and places it into a modern-day content-driven marketing campaign. The main differentiator in the case of influencer marketing is that the results of the campaign are collaborations between brands and influencers.
NOTE
There was a time when TV news channels, before the launch, would take best wishes from politicians, celebrities and renowned personalities in order to establish their credibility before their viewers. Similarly , marketers and advertising agencies used to take endorsements from celebrities and people with credentials. In the digital era. marketers and advertising agencies engage influencers for increasing sales and brand promotion.
Influencer marketing, a key to success
The Influencer Marketing Report 2022 has some interesting findings for marketers and advertising agencies, It stated that nano, micro and macro-influencers are key to building and sustaining a brand and are considered more credible than celebrities by consumers, while digital trust and authenticity are key variables in ensuring Influencer Credibility in the eyes of the consumers.
A close look at the change in branding industry shows that brands now want to connect with consumers directly. That’s because consumers have an immense amount of choice and are digitally active participants across Tier 1 and Tier 2 cities and towns.In India, over two-thirds of the digitally active population follow an influencer with a large number of this digitally active population relying heavily on nano, micro and macro influencers to help make choices that best resonate with them.
Social media platforms have realised the importance of influencer marketing. To encash the popularity of influencer marketing and Reels and maximize its ad revenue potential, Meta has rolled out #MadeOnReels. The objective of the programme is to connect leading brands with top influencers in the country. The timing is opportune as the ad market in India has bounced back after a prolonged spell of inflation and economic headwinds.
Social media platforms and influencer marketing
Believe it or not! Instagram is the most popular platform for influencer marketing worldwide. Youtube is the second option while Tik tok is number three. According to a 2020 survey. 89% of marketers selected the social platform as their first choice, followed by 70% selecting YouTube as the second option. And with TikTok’s explosive growth in recent years, there were over 106 thousand TikTok influencers worldwide in 2020, up from 35.5 thousand in 2019, and 16.4 thousand in 2018, according to the Forbes.com.
During covid, the dependence on internet for online shopping, entertainment, education and several other things has opened avenues for influential people to have a hold on their followers. They have held a significant sway over them.
As far as brands are concerned, these brands have always depended on icons and popular influencers as brand ambassadors for traditional advertising, Brands can now convince influencers to promote their products. In other words, Brands should hire influences for generating a multiplier word of mouth effect. This approach can bring more credibility and lasting success as compared to traditional advertising. Since Influencer Marketing primarily leverages the connection consumers feel with the influencers themselves, making use of their assets, such as their beliefs, appearance, ethos or diet, it also reduces the pressure on brands to drop the price of their products or run special offers.
The fact is that influencer marketing is a powerful approach to reach new customers. Utilizing it effectively is the most important thing. However, brands should know prime audience, partnering with influencers whose audience aligns with their target customer, create exclusive experiences that get people talking, incentivize sharing, and measuring results.
Influencer marketing versus celebrity marketing?
The report’s findings revealed that influencers are more trusted than celebrities across the board by consumers and there is more willingness to try a product on the recommendation of an influencer rather than a celebrity .
The rise of influencer marketing has not necessarily threatened big stars and models who were previously engaged in advertising and marketing. Rather, it has created a new avenue for brands to reach their target audiences. While celebrities and models may have a wider reach, influencers often have a more engaged and specific following. Brands are increasingly using a mix of both traditional celebrity endorsements and influencer partnerships to reach a diverse range of consumers.
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