Influence marketing is a relatively new way to promote your products and business, which is growing with a new trend: now consumers, instead of looking at companies, look at their peers, what they use, how, and which brands like. Therefore, social media influencing on platforms like Instagram, YouTube, Snapchat, Instagram, Pinterest is becoming a new channel for businesses to connect with their customers in a more scalable, directly, and organically way. How to start utilizing the benefits from the influence marketing and how much does it cost?
What is influence marketing
Duncan Brown, Nick Hayes in their book ‘Influencer Marketing: Who Really Influences Your Customers?’ defined influencer marketing like:
‘a form of marketing in which focus is placed on influential people rather than the target market as a whole on social media. It identifies the individuals who have influence over potential customers and orients marketing activities around these influencers’.
Other words, brands find the influencers (people with a lot of followers on the social platforms) and cooperate with them to promote the products. As a result:
- Companies get access to the new audience through the people its potential audience trust
- Influencers receive profit from the collaboration
- People get a beneficial deal or find out about a new product.
How does it popular
According to a Snap.Inc and Sparkler study, 31% of customers said that the celebrities and influencers impact on their buying decisions.
Four friends types that influence purchase decisions
Another survey conducted by Tomoson found that ‘businesses are making $6.50 for every $1 spent on influencer marketing’. Moreover, influencer marketing was rated as the fastest-growing online customer-acquisition channel by the marketers. Believe it or not, but it even overtakes the organic search and email marketing.
Influencer marketing is the fastest-growing channel
Why does it happen? Today, every month over $255M are spent by brands on the influence marketing. But its number will definitely increase soon because more than 50% of marketers believe that they acquire more quality audience.
Quality of customers acquired through influencer marketing
Hence, it is not surprising that almost 60% of business want to increase their budget spending on collaborations with influencers.
And where to find them? What are the most popular platforms? The Tomoson study has also answered this question: ‘37% (marketers) chose blogs. Facebook was next, with 25%, making it the most popular social network. YouTube, Instagram and Twitter each got 5–6%, failing to collectively add up to the power of Facebook’.
How to use influence marketing in e-commerce
Influence marketing has to be a part of your brand marketing strategy. To create effective collaborations with celebrities do these simple steps:
- Research (define your target audience, analyze which influencers they follow, what social nets use)
- Strongly define your brand message
- Choose the platforms you will use
- Identify influencers (one hint: look at the engagement level, not only the followers’ number)
- Create a meaningful and rememberable content with influencers
- Measure the results.
On the other side, you need to manage your relations with the influencers. And it has some distinguishes from the classic ads:
- Introduce them your products and business, make sure they clearly understand all your missions, goals, and share the values
- Give them the details of the upcoming campaign
- Provide fair compensations (on average, bloggers – $175 – $5K, Instagram influencers – $75 – $3K, Video influencers – $500 – $5K)
- Offer some advantages for their audience (for example, a discount code, free shipping, etc.)
How to analyze the performing of influence marketing
One of the most confused questions about the influence marketing is related to the analyzing. How to understand what works and what not? The vast majority of marketers consider sales as the most important metrics, followed by:
- Social shares
- Earned media value.
Influencer marketing metrics
So, creating a trusted content is not as simple as it may seem first. But if you choose the right influencers with the engaged and active audience, your business will be able to significantly raise sales.