Influence of Social Media in Retail

PART 3 - A New Approach to Influencer Marketing

SERIES C

Influencer marketing?has been a buzzword for a while now. For those, who are new to this phrase, Influencer marketing involves a brand collaborating with an online influencer to market its products or services. Rather than marketing directly to a large group of consumers, you instead hire / pay influencers to get out the word for you. In other words, it takes the idea of celebrity endorsement into a modern-day content-driven marketing campaign.

Influencer marketing used to be all about heavily-edited product shots, selfies and carefully-constructed captions. However, since the COVID 19 phase last year, there has been a major shift in the way brands and influencers work together. Influencer content has slowly transitioned to a raw, real aesthetic, and this change will continue into 2021.

Who are Influencers?

Unlike celebrities, influencers can be anywhere or anyone.?What makes them influential is their large followings on the web and social media. An influencer can be a popular fashion blogger, food critic, trekker or a fitness trainer on Instagram. They will have looked up as being the experts in their field. They are the go-to people who provide the answers to people's questions. Depending on their expertise, they are the people who can make the most engaging social posts on their specialised /niche topics by sharing pictures, videos, have online discussions or share blogs. It is also important to understand that most of the influencers have systematically built a following. They have the power to affect the purchasing decisions because of the knowledge, position, authority or relationship with their followers. The audience cares about the opinions of the influencers and not doesn't really care less about the brand. The audience is loyal to them, and they can simply walk away taking their followers with them.

So what are the different types of influencers and how do you decide which ones to work with?

While searching for an influencer you want to collaborate with, you will come across hundreds of potential partners.?But how does a brand choose which type of influencer they want to collaborate with??

Influencers are broken down into five categories, based on their follower count on any given social media channel:

• Nano influencers:?between 1,000 and 5,000 followers
• Micro influencers:?between 5,000 and 20,000 followers
• Power or mid-tier:?between 20,000 and 100,000 followers
• Mega influencers:?between 100,000 and 1 million followers
• Celebrities:?over a 1 million followers

The Remarkable Rise of Influencer Marketing!!

• The pandemic has accelerated the growth of influencer marketing. From a mere $1.7 billion in 2016, influencer marketing is estimated to have grown to a market size of $9.7 billion in 2020 and is expected to jump further to $13.8 billion in 2021.
• ?Over 90% of survey respondents consider influencer marketing as an effective form of marketing.
• Over 50% of the brands working with influencers run their e-commerce business. Nearly 70% of brands use Instagram for influencer marketing.
• There has been an increase in searches?for the phrase "influencer marketing" of 475% on Google alone since 2016.
• With Influencer marketing becoming mainstream, companies are continually setting up platforms. Approximately 1400 Influencer marketing focused platforms and agencies?entered the market in the last 5 years alone.
• Businesses are making?$5.78 ROI?for every $1 spent on influencer marketing. Some companies gain up to $18 EMV for every influencer dollar spent, although 25% either lose money or just break even.

However, as with any marketing tactic or business strategy, there are some Dos and Don’ts that the brands need to consider before they jump headfirst into influencer marketing.

1. ?Select the right kind of influence required for your brand. Although big-name celebrities and influencers (Macro-influencers) may seem like the best way to promote a product,?the engagement rate is often much lower in comparison to their micro-influencer counterparts. Further, they also come with a smaller price tag which allows the brands to try different marketing strategies.
2. Do not work with Influencers only for brand awareness. Make sure that the end-result is agreed and being tracked. With the rising cost of influencer marketing, it is important that the influencers work to promote your brand or product in a specific manner agreed. Be clear about the results you would like to see from paid posts based on their following and past work of the influencer before beginning a campaign be clear about the results.
3. De selective of the Social Media platforms you engage on. While TikTok and Instagram is the leading platform for influencers today, the preferences and trends are constantly changing.
4. Make sure that you have negotiated properly on the compensation. In the early days, influencers would post in exchange for free merchandise or discounts but this is no longer the situation. Most influencers are more likely to negotiate depending on how passionate they are about the product /services the brands offer.
5. Make sure that the posts are not generic. Allow the influencers to create authentic content that promotes your brand as well as their personal brand. This ensure that the content will be more authentic and engaging.
6. Ensure that the influencer understands your vision and is passionate about your product. Finding the right influencer that is willing to work with your brand for an extended period of time and is passionate about your brand is often the key to successful Influencer Marketing. Also, make sure you do not force the influencer with difficult posting schedules and force to create quick content, which will not only strain your relationship with the influencer, but would lead to bad quality and less effective campaign.
7. Follow all the FTC guidelines when it comes to Influencer Marketing. In the past, many influencers did not disclose to their followers that they were being paid to share a post on a product. However, the guidelines have changed since changed. In order to avoid any legal troubles, ensure that influencer follows basic guidelines?like putting the #ad or #sponsored at the end of each post that you pay the influencer for.
8. Make sure you stay connected with the Influencer. After a campaign is over, you may be tempted to move on. However, it is important to cultivate a partnership. This way, the influencer will remain loyal to the brand and remain excited to work with you on multiple campaigns, which in turn allows a longstanding relationship with their audience.

?Conclusion:

The Influencer Economy has changed the way we buy things—forever.

Brands who aren’t part of it are losing control. They no longer have centre-stage, consumers do. The consumer now controls the buying journey and determines the messaging they want to see. If the brands want to be a part of consumer conversations, they will have to play by buyer rules. Social media is where consumers are having conversations today, and one of the most impactful by-products to emerge is Influencer Marketing.

If you’ve been thinking of a “wait and watch” approach Think Again!!