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How Effective Is Influencer Marketing? – Complete Guide

Akash Tripathi by Akash Tripathi
May 3, 2021
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Nowadays, social media is not only popular but also essential for business marketing. The internet has changed the way people compare and evaluate companies. With regards to Influencer Marketing, the field has witnessed rapid growth over the last decade. However, the current scenario says that social media influencers are dominating the digital arena.

There are no second thoughts to it that influencer marketing is here to stay, and a plethora of experts say that it is one of the best marketing methods one can implement in today’s competitive world.

What Exactly Is Influencer Marketing?

Even though the term “Influencer Marketing” is tossed around so often, there are few sections of people who lack clarity about it. To simplify the term, Influencer Marketing occurs when an influencer begins contributing new content to a company’s social media handles in order to promote the products or services of the company.

The basic premise behind influencer Marketing is that individuals with a substantial social following, who are regarded as experts within their niche, will use endorsements and merchandise in question to market their goods or services.

Brands can utilize social influencers to show their potential customers that they are trustworthy. A big reason Influencer Marketing works so well is that social influencers have worked hard to build up a great deal of trust with their followers. A lot of Influencer Marketing relies on the old adage, “People believe what they witness.”

Some of the standard methods used under influencer marketing:

It is possible to use influencer marketing for business in virtually any way possible. The main aim is to leverage influencers to promote the said product or service and get an influential person to influence the desired audience; there are several ways to achieve this objective. However, a company’s challenge is to identify an influencer who can portray the brand’s image right.

Several standard methods of digital marketing are employed by most brands:

  1. Sponsored Content- 

Social media posts advertising products and services can be considered as sponsored content. Nowadays, sponsored content is quite popular due to its low cost and ability to reach millions of targeted audiences. Sponsored content’s main advantage over traditional advertising is that the audience hardly notices that they are viewing a sponsored advertisement.

  1. Giveaways and contests – 

People on social media sites like Instagram and Twitter can’t get enough of contests and giveaways. They can feel like they are getting something for free. It is mainly because influencers showcase those products which their followers love to buy. Hence the influencer’s contests and giveaways tend to get a lot of attention and reach several people.

Promotions such as giveaways and contests benefit both brands and influencers. It mainly involves tagging friends, following the brand, liking the posts, sharing the content, signing up for the newsletter, etc. Consequently, this also stimulates more engagement.

  1. Promo Codes and Affiliate Marketing: 

The company shares the discount coders with brand influencers that they would share with their followers. Thus, by using the discount code, followers would get a discount on the product sponsored while the brand would get more visibility.

A collaboration between Audible and New York Times bestseller Tim Ferriss is one such partnership. On his popular podcast, Tim Ferriss tells his listeners about the partnership with Audible and directs them to a custom URL. This would enable them to get a free e-book and see a list of Tim’s favorite books.

The Rising Popularity of Influencer Marketing:

Influencer Marketing has become even more popular than traditional marketing since it has replaced old-fashioned ways of reaching out to customers. Millennials seek expert advice from Instagram, Twitter, and YouTube celebrities on purchasing decisions.

Influencer marketing is a worthwhile investment in both time and money. The following statistics show which metrics are impacted by influencer marketing:

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1.  80% of marketers use Influencer Marketing, and 89% say it’s more efficient than traditional marketing channels.

2.  49% of consumers today depend on influencer recommendations for their purchase decisions. 60% say they’ve been influenced by a recommendation when shopping in-store.

3.  70% of the teens say that they trust influencers more when compared to traditional celebrities.

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4.  Study by Tomoson found that most businesses earn $6.50 for every dollar spent on influencers, while the top 13% earn $20 or more.

5.  22% of marketers say Influencer Marketing is the most cost-effective method of obtaining new customers. 57% of Fashion and Beauty Companies Engage in Influencer Marketing.

The Importance and Growth of Influencer Marketing:

Influencer Marketing speaks a lot for a brand or a company. Above all, it helps break the obvious marketing barriers that were impenetrable a few years ago as it can help the companies achieve their goals. Hence, the main aim of influencer marketing is to get more sales.

Influence marketing is said to be a perfect blend of typical and contemporary marketing methods. The truth as to why Influencer Marketing is working wonders is that influencers also know how to communicate very well with other people, especially about the field they’re working in. 

This makes it easier for them to sell a product. Audiences tend to trust influencers’ opinions quicker as they’re real people and most of them give their honest opinion about their experiences.

What is the Future of Influencer Marketing?

Ideally, influencer marketing is one of the best choices now as it is pretty popular, and even though it is a new marketing method but it has gone a long way.

Additionally, influencer marketing has just changed the way how customers interact with brands, and the company would indeed lack something if they don’t choose to go with the flow and implement influencer marketing. As social media has become a more integral part of our lives, influencer marketing has exploded. 

Influencer marketing is going to be a game-changer in the times to come. In 2020, the global pandemic was the period that literally gave a platform to several new content creators and brands also did not shy away from leveraging their skills and popularity to their benefit. 

A massive trend that we can expect to witness moving forward is how brands will merge content marketing, influencer marketing, and social media marketing. A lot of marketing experts have high expectations from Influencer Marketing.

It is estimated that the companies will focus more on finding and partnering with those influencers who share similar values as themselves and will enter into long-term relationships with them, rather than onboarding them on a contractual basis. As for the content creators, they will be creating more audio and video content.

Also, the most commonly asked question that a layman has regarding influencers is how much do influencers earn? The truth is, there might be little or almost no money when one starts as an influencer. A lot of promotions can happen on the barter system. However, high-profile influencers can earn as much as $250K per sponsored post. A micro-influencer typically earns between $30K and $100K a year.

Aside from followership, another factor affecting influencer earnings is the industry they work in. Currently, the apparel, health, and fashion industries are the highest-paying ones.

Conclusion

It will be interesting to see how Influencer Marketing plays out in the future. With social media platforms like Facebook, Instagram, YouTube, and Twitter being such an integral part of our lives, it is a fact that the future of Influencer Marketing is very bright and it is here to stay!

Tags: Influencer Marketinginfluencers
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Akash Tripathi

Akash Tripathi

Akash Tripathi is a Content Marketing strategist at Top Mobile Tech. It is a blog where I cover all the tips & tricks related to Mobile and more related to tech. Stay connected to the rest of the world with Top Mobile Tech. We bring latest and critical news to your mobile and computer devices.

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