What is influencer marketing? An Ultimate Guide
‘Influencer Marketing’ is not a new name today. Every business today uses influencer marketing for their social media marketing campaigns. The monthly search volume on Google for the phrase only in India is more than 18,000. However, if someone comes across the term for the first time, they may wonder, ‘What is Influencer Marketing’? If you are one of those, do not worry. In this article, we will cover everything about influencer marketing in great detail.
Influencer marketing is slowly changing the future of marketing, and there is no way we can deny that. Brands not opting for influencer marketing feel left behind by their competitors. It could either double-fold your revenue, or it could give you no benefit at all. Read on to learn more about what is influencer marketing and what is the future potential of influencer marketing.
What is Influencer Marketing?
Influencer Marketing is a type of marketing where popular celebrities or known personalities on social media advertise products and services of businesses. They do so by endorsing a product or advertising product placement methods. Such influencers work in the field related to e-commerce brands and generally have a huge follower base. While opting for influencer marketing, brands typically go for small/micro-influencers with a dedicated number of followers, reasonable charges, and an authentic approach.
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This type of marketing is flourishing these days, and the reason lies in the impact of influencers. Almost 82% of people make purchasing decisions based on the products and services an influencer recommends. In 2022, India’s influencer marketing sector boasted a market worth 12 billion Indian rupees. The future trends will rise by 25% in the next five years.
Different Tiers in Influencer Marketing
From TikTok artists to Instagram models, the humongous rise in the use of social media has given us an array of social media influencers. The following are the categories of influencers that brands can reach out to as per their requirements:
- Nano Influencers– 0 to 10k followers
- Micro-Influencers– 10k to 100k followers
- Mid Influencers – 100k to 500k followers
- Macro Influencers– 500k to 1M followers
- Mega-Macro Influencers– 1M+ followers
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Why is Influencer Marketing thriving so fast?
Now that you are aware of What is Influencer Marketing, it is important for you to know why it is thriving so fast. From Instagram to TikTok, you can find a lot of influencers advertising numerous products and services, promising you notable gains. Here are all the reasons why influencer marketing is ruling the marketing trends in the present and future:
Uplift Brand Awareness :
Influencer Marketing is a significant tool for brand awareness, showcasing your product to a huge number of people. Influencers create content that promotes your products and urges more people to buy them. This is perfect for budding e-commerce startups with fewer engaged audiences. Influencers can help your business create hype about a new product, collection, and more.
Boost social media followers :
If your target is encouraging sales through social media, Social Media Influencer Marketing will help you a lot. When talking about your brand, an influencer lets more people know your business exists, immediately catching the audience’s attention. There is a high possibility that an influencer’s followers may follow your business’s social media account as well. Giveaway campaigns, contests, and quizzes are popular ways to achieve it.
Tap new markets :
Influencer marketing has a huge potential to let businesses crack new marketing and reach their target audience. Connecting with niche Social Media Influencers with a strong follower base allows for direct outreach. Boat, a well-known earwear audio-tech brand in India, has been using Influencer marketing for years. It has not only tapped new markets but also retained its existing customers and increased its sales.
Seek feedback on new products :
Social Media influencer marketing is today a top choice for brands to gain feedback on their new product collection, services, features, and more. Influencers have to share a good engagement with their followers, which gives them insights into their likes and dislikes. They can also make detailed feedback/review video that hooks the audience. Sugar, a cosmetic brand, leverages this benefit via influencer marketing.
Promotes your brand under budget :
The major benefit that influencer marketing has on brands is the cost-effectiveness that comes with it. Influencer marketing is almost 30% more affordable than other types of advertising and marketing plans. Hiring micro-influencers with a good follower count yet budget-friendly charges can be very effective for your business. Among other famous brands, Maybelline makes use of social media influencers (Micro-influencers) to double the impact of campaigns.
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Increase sales, credibility, and trust :
When a lot of influencers talk positively about your products, it gives you the benefit of authority in the business. This new-grown reputation builds trust among your target audience. Content that shows before and after results, product unboxing videos, and others works towards building your sales. Many renowned brands that are boosting their sales via Social Media Influencer marketing are Nykaa, Lenskart, The Wellness Shop, Namhya Foods, and others.
Brings fresh content for your audience :
Collaborating with social media influencers also enhances the visual appeal of your social media feed. If you are a marketer, you can understand the difficulty of coming up with new and innovative ideas for social media. Hiring experienced influencers means bringing more fresh and out-of-the-box content ideas centring around your product. They can help the audience visualize your product in different scenarios in ways that solve their problem.
Flexibility to turn influencers into brand ambassadors :
Hiring Social Media Influencers also gives you the benefit of sharing long-term partnerships with social media content creators. If you love the work of your influencers, you can also make them the brand ambassador of your product. This would establish authority for your brand, making it a well-known name among your users. Many brands have promoted their influencers into full-time brand ambassadors, giving them more exposure and fame.
What is the future of Influencer Marketing?
By now, you must have gained a fair idea of What is Influencer Marketing and what are the advantages that it has in store for marketers and brands. The budget for influencer collaboration is expected to increase by 20% in 2024. Besides this, there are other future trends in Influencer Marketing that you must know to leverage it in the best way. Some of them are discussed below:
Growth in the User-Generated Content (UGC) :
With the ever-rising need to establish yourself as an authentic brand, there is a significant shift towards creating user-generated content. Capturing genuine reactions of Influencers for a product, doing street interviews with random audiences, showcasing actual videos and photos of a product, how-to tutorials, and others are an example of user-generated content. The future trends of influencer marketing will focus more on the authenticity of a brand by creating user-generated content for social media.
More emphasis on pop culture events and trends :
Influencers today are seen as sources to stay up-to-date with the latest trends in fashion, politics, tech, lifestyle, and more. Their feed gives valuable insights on what is trending so that you never miss out on anything. It is expected to continue with the zeal in 2024, where more businesses may need influencers to make their product a part of the trend. The latest example of such a trend is the Barbie movie campaign, where every influencer dressed in pink to create a Barbie look. The united trend has immensely impacted the success of the movie.
Prioritise brand metrics without discount codes :
Majorly, people dealing in e-commerce products measure the impact of influencer marketing via discount codes. It has been a successful way to boost sales and traffic on the website, but the short-term gains are posing a problem. It can also blur the actual value of products, making users habitual of discounts. Keeping this in mind, the Influencer Marketing trends for 2024 advise users to create content that establishes a positive image around the brand without relying on discount codes.
Identify subcultures under your target audience :
Just targeting your product niche audience is not enough. You must research underneath your target audience to explore subcultures within your audience. This would help you to filter out your actual target audience. Although it might burden your budget, the results will be worth it. Doing so will also allow you to take the first-mover advantage by tapping into new and potential subcultures.
Introduce AI in your influencer marketing campaigns :
AI is everywhere, and it will undoubtedly surround Influencer Marketing, too. The future trends of Influencer marketing reflect the use of AI in finding the right influencer that fits your brand. Streamlining your influencer marketing campaigns also saves you abundant time and money. AI also helps in detecting fraud influencers from their social media accounts. It also helps the brand get insights into influencers’ success to establish profitable partnerships. Doesn’t it sound like an exciting prospect for your future campaigns?
Significant growth in ad budget to capture better ROI :
To achieve a measurable ROI, brands consciously increase influencer marketing budgets and paid ads. More emphasis on product purchases and website sign-ups will be the theme of Influencer marketing in the future. Marketers will be advised to optimize the results from their social media campaigns by making them quantifiable for brands to assess. Thus, with a reasonable budget, you can monitor every aspect of your campaigns, which would ultimately benefit your ROI.
Micro-influencer Marketing will rule the influencer marketing game :
Many small and medium brands prefer hiring micro-influencers with smaller yet engaging audience counts. Authenticity, relevancy, and account reach will still be the factors for selecting an influencer, and with no surprise, micro-influencers will be leading the game. Micro-influencer marketing will continue to provide brands with untapped communities, opening opportunities for better sales. Long-term relationships of influencers with the brand will also play a huge role in selecting them for audience outreach.
Influencer Marketing is the newest yet effective marketing curve, making all the difference in brand awareness today. There are many reasons why this type of marketing is ruling all over social media, as we have mentioned above. With such massive popularity, the future trends of influencer marketing are only heading towards more growth.
From more emphasis on pop culture trends to increased demand for micro-influencers, these trends set a positive tone for the future of Influencer Marketing. Whether you are a newbie to influencer marketing or have been exercising this marketing type for years, keeping up with the discussed trends will make a difference in your brand.