Is Influencer Marketing Really Effective?
A while ago, Starbucks, the coffee-giant was looking to promote the new Starbucks Reserve roastery in New York. The management decided to go with Instagram influencer marketing and allied with 3 NY-based influencers.
Posts were tagged with @StarbucksReserve and incorporated the hashtag #StarbucksReserve. The pictures of the roastery were uploaded, showing the modern furniture, cozy atmosphere, and most importantly, Starbucks drinks. The captions entailed a special atmosphere and a unique offer of drinks. Lastly, the campaign’s objective was to advertise the Starbucks Reserve’s brand and persuade people to visit it in New York.
Unsurprisingly, the posts attracted thousands of likes and comments, resulting in an engaging rate of 3.6%. This way, Starbucks succeeded in communicating its message to the relevant audience and gained local endorsements.
What Is Influencer Marketing?
The concept of influencer marketing is older than you may think. Companies with bigger budgets have been paying their celebrities to endorse their products for a long time. However, as the target audience moved away from conventional marketing to social media and other digital marketing channels, a new form of marketing comprising of online influencers emerged.
These days, influencer marketing entails looking for normal people on YouTube, Twitter, and Instagram who have a large and engaged audience. Some of the influencer marketing examples include the following:
- Offer the influencer insider information or exclusive products for posts about a brand or product.
- Provide the influencer with discounted or free merchandise in return for a review.
- Pay the influencer for creating sponsored posts about a brand or product.
Are These People Actually Influential?
Yes they are.
These social media influencers have a devoted fan-base. These fans trust their judgment completely and are motivated to follow how their idols live; thus, they even purchase the products endorsed by the influencers. Whether it is a new gadget, such as a new phone or a beauty product, influencers have tremendous power in shaping the minds of social media users and influence their shopping decisions with a few images and words on Instagram.
According to Tamba, 84% of consumers view reviews as a reliable source of information when buying anything. This also includes reviews by social media influencers and sponsored posts that impact shopping decisions in the same way as recommendations by a relative or friend. Around 63% of consumers aged between 13 and 24 expressed their intention to try out a product or brand that was recommended by an influencer.
Some other examples of influencer marketing are listed below:
- After Kylie Jenner shared how little she uses Snapchat, the social media giant lost almost $1.3 billion in shares.
- Jeffree Star, an American beauty influencer, spoke in support of the Elf Cosmetics Poreless Putty Primer, it sold out across the world and around 100,000 people signed up for the waiting list.
- Mrs. Hinch often talks about her favourite selection of cleaning products to nearly 3 million Instagram followers. When she complimented Zoflora, the company experienced a 28% in sales, leading them to double their production to meet the rising demand.
Influencer marketing is an online and digital type of conventional word-of-mouth marketing. It goes beyond the numbers game when it comes to followers. The follower count of an influencer is crucial – it is the engagement levels they have with their audience that matter more. That’s why companies are looking to collaborate with micro-influencers over macro-influencers, as the former have higher engagement rates and more loyal followers.
When executed properly, influencer marketing is quite effective as 89% of marketers have found it to have comparable ROI to conventional forms of marketing.
In order to build a successful influencer marketing campaign, you have to identify your goals and objectives from the start to understand and measure your return on investment – what you are planning to achieve.
For instance, are you aiming for direct sales, or do you want better brand awareness? Do keep in mind that there has to be a balance of the influencer having creative control while ensuring that the right brand messaging is applied.
Gaining Trust
Regardless of which industry you are in, every sector is ravaged by high competition. It is tough to outperform others. In many cases, the buyers don’t know which company to trust. When you are selling to consumers or businesses, it is integral to build your brand as one they can rely on to deliver. It takes some time to build trust.
On the contrary, influencer marketers have earned the trust of their fans. A crucial aspect of building trust is to promote only those products that are really worth purchasing and using in real life. Moreover, the influencer takes time to create content that advertises the features of a service or product. At times, in many niches, such as beauty, they have to show how good the items look. Therefore, extended use trials are quite effective.
Regardless of how an influencer tests or advertises a product, they have a willing audience. People like to interact with influencer content as they see the influencer as someone who is like them. Even a little gesture like showing interest in a common interest can build a strong bond – corporate marketers cannot replicate this effect.
Final Thoughts
Now that you know how effective influencer marketing is, look into how you can use it to your company’s advantage. First, come up with a goal. Are you looking to generate brand awareness or drive sales? After that, you can find influencers who can work on your brand’s mission.
Do you need help with influencer marketing? Contact us right now.
I hope that in this year to come, you make mistakes. If you are making mistakes…you’re Doing Something. “
Thejas Sreedharan
Thejas Sreedharan is a digital marketing and influencer marketing specialist based out of Dublin, Ireland. With over 6 years of experience under his belt, he prides himself for his growth as a digital marketer and the expansion of his skill set, making him a specialist in this niche now. He is passionate about the work that he does and his interests includes PPC search campaigns, influencer marketing and conversion optimization.
