Is Influencer Marketing the Future of Marketing?

Influencer marketing is gaining ground in the advertising industry. Shane Barker contemplates the reasons behind its popularity and suggests how to successfully work with influencers to build your brand

Are you marketing your brand through the right channels? Or do you often find yourself struggling with a poor return on investments? With the marketing industry rapidly advancing, you might experience some issues finding the best marketing channel for your brand. What used to work a few years ago might not be as effective anymore. For instance, banner ads may not have sufficient reach because more people have started using ad-blockers. This is exactly why many brands are switching from traditional advertising to influencer marketing.

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Influencer marketing involves promoting your brand through an influencer who has a significant impact on your target audience’s purchasing decisions. Influencers are considered experts by the people who follow them. They are knowledgeable in their given category – be it fitness, fashion and lifestyle, technology, gaming, or finance. Whatever influencers say about a certain product, service, or brand is deemed as trustworthy info, giving brands a reason to work with them.

Why is Influencer Marketing so Popular?

Several studies have proven that influencer marketing isn’t just a fad with no substance. There’s a reason brands flock to influencers – it works. In March 2015, Tomoson conducted a survey of 125 marketers online. Here’s what they found:

1. Influencer marketing yields a high ROI – A significant finding in the study was that influencer marketing yields a significant return on investment. For every $1 they invested, marketers were earning an average of $6.50. In fact, the top 13% were able to make $20 or more for an investment of $1.

2. Influencer marketing is inexpensive – The survey results suggest that influencer marketing is your best bet at spending less while earning more. 22% of marketers in the study said that it is the most cost-effective channel for acquiring new customers. Influencer marketing is just as cost-effective as email marketing and even beats organic search by a small percentage.

3. Influencer marketing improves the quality of leads – According to 51% of marketers who participated in the survey, influencer marketing has helped them acquire better customers. The ability to reach a relevant audience has a lot to do with this impressive result. Only 11% said that the quality of their leads decreased through influencer marketing.

The Tomoson report isn’t the only study proving the effectiveness of influencer marketing. In 2015, Augure conducted a survey of more than 600 professionals in communication and marketing. The participants came from 30 different fields and were spread out in 32 countries, making the results much more reliable and accurate. Take a look at some of the most interesting findings from the study:

1. Influencer marketing builds brand awareness – 93% of participants vouched for influencer marketing as an effective channel for building brand awareness. The level of effectiveness differs. Of the 600 participants, 49% said it’s “very effective,” while 44% said that it’s “somewhat effective.” Either way, the numbers show that influencer marketing can help build brand awareness.

2. Influencer marketing helps generate leads – Out of the 600 professionals surveyed, 75% said that influencer marketing is an effective channel for generating leads. Specifically, 27% believed it to be “very effective,” while 48% of participants said it’s “somewhat effective.” The main reason for this is because influencers have huge followings. Take for example, an influencer with 100,000 followers. Even if just 1% of those followers take notice of your brand, it means you’ll be generating 1,000 new leads.

3. Influencer marketing increases customer loyalty – Another interesting finding from the study is that 76% of respondents said that influencer marketing is an effective way to boost customer loyalty. 26% of participants said it is “very effective,” and an additional 50% responded that it is “somewhat effective.”

What could be the reason for this? The simple explanation is that influencers have an existing audience of loyal fans. These followers trust them and look to them for brand and product recommendations. If a trusted influencer vouches for your brand, they’re saying that your brand is trustworthy. This goes a long way in strengthening your relationship with customers, which can help boost customer loyalty.

What’s the Catch?

Despite its proven effectiveness, influencer marketing, like all marketing channels, does come with a few challenges. The previously cited Augure study also listed some of the major challenges, which include:

Challenge #1: Identifying the Right Influencers

The biggest challenge with influencer marketing is that it’s difficult to decide which influencers will be best for your brand. 75% of professionals in the study said that this is the main challenge for them.

Solution

The key to overcoming this issue is to conduct thorough research, starting with audience research. Knowing your target audience will help you understand what kind of messaging would get through to them and what kind of people they look up to. This will give you a better idea which influencers will have the most significant influence on your audience.

A lot of marketers make the mistake of choosing influencers based solely on how many followers they have. Even if an influencer seems to be a good fit for your brand, and they have a massive following, they may not be able to give you the results you're looking for if they don’t know how to engage their audience. Make sure you research both the number of followers an influencer has and their engagement statistics before you decide to work with them.

Challenge #2: Finding the Right Engagement Tactics

To start working with influencers, you need to reach out to them and start building a relationship with them. This is where 69% of marketing and communication professionals get stuck, the study found. With hundreds of other brands also trying to connect with them, influencers may need some convincing to get them to work with you.

Solution

The best way to overcome this challenge is by personalizing your outreach efforts. Let influencers know that you’re making an effort to connect with them and not just copying and pasting some email template you found online. You also need to help them understand why they should work with you by showing them what’s in it for them. For instance, mention your credentials and awards in your outreach email, in addition to pitching your offer.

Conclusion

As detailed above, there are many good reasons an increasing number of brands are opting to work with influencers. There are also some challenges involved with influencer marketing, which may be why some brands are still hanging back. If you’re having some problems finding the right influencers for your brand or reaching out to them, don't give up!