BACK TO BASICS SERIES by Francesca Gold
Whilst we’re all in lockdown, more and more “influencers” on social media are promoting products. It’s rare that you can go on Instagram and not watch a Story that has product placements or has been #gifted. Influencer marketing, however, doesn’t always come in the obvious form of a Youtuber- we are all guilty of reading the customer reviews prior to purchasing anything which influences your consumer behaviour. Why is this important though? Is it actually an effective form of marketing and sales?
What is Influencer Marketing?
Influencer marketing is a form of marketing that uses key leaders (“influencers”) to raise awareness surrounding a brand and/or their product to the larger market. This simple yet effective tactic has seen the rise of sponsored ads, as brands put their money into the influencer getting the word out, rather than a TV ad for example. Since the rise of social, business owners have had to consider their target audience to understand their behaviours. Once they understand this, a business can plug into their audience by utilising an influencer.
Is it effective?
It is such a subtle yet successful form of marketing, with more individuals opting to buy a product if it’s advertised by someone they trust, compared to watching a 30 second TV advert. In fact, business are making $5.20 for every $1 spent on influencer marketing (2019 survey by the Influencer Marketing Hub). That is a huge ROI for the business, highlighting the power and success of influencer marketing.
The results of this marketing are that it quickly builds revenue as explained, but it also rapidly builds brand trust, awareness and enhances your content strategy- all through effectively and subtly reaching your target audience. Now, more than ever, brands are investing in influencer marketing as many of us are at home scrolling on digital.