Here’s Why Influencer Marketing Will FAIL... Or Not!
Updated: Jan 27
Whenever we open any app on social media, It’s hard not to notice influencers sharing their lifestyles, promoting products, engaging with their followers.
From sharing their meals to outfits, they share everything on social media to make people aware of different things. Globally or nationally, we can see so many launches via influencers. Influencers are constantly coming up with new methods to be sponsored on their favourite platforms, from standard posts to the ever-popular Instagram Stories to extended videos.
It's important to remember that anyone can be an influencer and can start any day. As an influencer, it all depends on your engagement, reach, and what and how you post on social media.
It may appear like influencer marketing is a new concept that has just lately gained traction. Influencer marketing has been around for 15 years. The first marketplace to pay bloggers for branded content, PayPerPost, sparked a lot of buzzes. Because blogs are primarily thought of as online diaries, many experts doubted that including ads or sponsorships in the material would feel genuine.
That is still a problem for today's influencers, but for those who can successfully advocate products or services while being genuine and honest, there are several benefits to be had. People generally like to buy based on the recommendations of others, therefore if they like someone, they will believe and try the items that they use. Influencers are recognized for their massive impact for this reason.
What is Influencer Marketing?
Influencer marketing is a method for firms to advertise their products on the internet by obtaining testimonials or recommendations from influencers and content owners. The bulk of influencers are found on social media and blogs, however other creators such as podcast hosts can also be considered. Majorly Influencer marketing is a part of brand awareness but now it’s a part of conversions, purchases and good leads.
Although influencer marketing began in 2006, it has evolved significantly over the last 15 years. Facebook and Twitter were still in their infancy, but Instagram wouldn't make its debut until 2010. Influencers were originally mostly bloggers who shared personal experiences and marketed things they utilised daily.
Influencers have a plethora of alternative possibilities, as well as amazing social media tools, to promote their work. Influencers come in a variety of shapes and sizes, as well as various specialisations. Every influencer is unique in their approach to social media content and presents it in their unique way.
Benchmark of Influencer Marketing 2021
Despite all of the uncertainty created by COVID in 2020, influencer marketing remains a popular and effective marketing strategy. We can now consider it to be a part of the standard marketing mix. Considering the fact that the media occasionally publishes reports from sceptics who criticise the sector, individuals who are actively involved can easily observe the success of influencer marketing. At the very least, more individuals are beginning to grasp the concept of influencer marketing.
3 Major Benchmarks from the Previous years
1. Micro-influencers have higher engagement rates than social media superstars According to recent data, smaller influencers have higher engagement rates than larger ones. Consider the many types of influencers in the following data:
Micro-influencer: less than 15,000 followers
Regular-influencer : between 15,000 and 50,000 followers
Rising-influencer : between 50,000 and 100,000 followers
Mid-influencer : between 100,000 and 500,000 followers
Macro-influencer : between 500,000 and 1,000,000 followers
Mega-influencer : more than 1,000,000 followers
2. Last year, 240 new platforms and influencer marketing-focused agencies were launched As the influencer marketing industry has grown, support companies and applications have emerged to make the process easier for both marketers and influencers.
In the previous year, 240 new influencer marketing platforms and companies have entered the market. This is down from last year's 380, but that could just reflect that the industry has become saturated, given the prevalence of influencer marketing. It's still one of the biggest jumps in recent years, bringing the total number of influencer agencies and platforms to 1360.
In 2015 there were just 190 platforms and agencies and now this number has increased to 335 in 2016, 420 in 2017, 740 in 2018, and 1120 in 2019 - over three times what it was just two years ago.
3. Free product samples are the most common form of influencer payment
This is the most shocking statistic in this year's poll. 36 % gave product samples to their influencers as a form of payment. Indeed, 21% just provided them with a discount on their product or service (presumably more expensive items). 10.5 % entered their influencers in a contest. This means that only 32.4 % of companies paid influencers with money.
While this may appear surprising at first glance, it likely reflects the fact that many businesses work with micro and nano-influencers. These entrants are content to be compensated in kind rather than financially. Presumably, large companies with larger marketing expenditures are the ones who bribe influencers with money.
7 Influencer Marketing trends that will help your brand grow-
1. Many affiliate programmes will rely heavily on influencers
There’s huge confusion and most people used to think of influencer marketing and affiliate marketing as two separate activities. But, in truth, they are inextricably linked. Both actions entail "outsider" advertising and urging fans to purchase someone's goods.
There is a very thin life for affiliate and sales as influencer marketing is at the top and growing rapidly, and linking with e-commerce, yet influencers are driving sales and brand exposure.
Many affiliates are beginning to engage with influencers to promote their affiliate products since they lack the enthusiastic audiences of influencers.
2. The shift from text and images to audio and video content is continuing
5G is gaining traction around the world, while fibre internet is becoming more widespread in many places. People are increasingly consuming more video and audio information as a result of this. Apps like Twitch, YouTube, and even podcast creators are gaining in popularity. Many of these creators have overlapping audiences and appear on various platforms.
Text and photos are still alive and well on Instagram, which is one of the most popular social media platforms. In the upcoming year, there’s expected to see a greater emphasis on video and audio material. TikTok and YouTube are becoming more popular, and podcasting is becoming more popular. Even old favourites like Facebook and Twitter have made video sharing a priority.
3. Live shopping is going to be on boom in influencer marketing
Over the course of 2021, live shopping got increasingly popular, and this trend is expected to continue into 2022. Influencers and other major thought leaders use live video and interactive content to sell products to their communities on their favourite social media channels.
Livestream shopping technologies and partnerships have been developed by Amazon, Facebook, TikTok, and Instagram. Many of TikTok's most well-known influencers have also taken part in shoppable Livestream events.
4. Influencers like Micro and Nano are going to get more love
There are 2 types of major influencers Micro and Nano influencers. Micro-influencers, particularly those with fewer than 25,000 followers, had the highest engagement rates, at roughly 7%, according to a 2019 analysis. Instagram engagement rates have been falling, businesses are paying more attention to influencers that have a large, engaged following, even if they have fewer followers. However, brands still pay attention to those influencers who are more connected with their audience.
5. Deals will increase on the basis of performance
As companies and influencers seek long-term collaborations, performance-based influencer marketing will undoubtedly grow. Clients would expect influencers to follow through on commitments, such as a certain amount of purchases or clicks to assure and this can help with an idea of how many clicks one can get through the particular influencer. Instead of accepting a single payment as an influencer with a performance-based contract, you might want to consider turning it into regular royalties. You'll also want to be cautious in your contract review before signing to make sure you comprehend what you're agreeing to before guaranteeing a particular return.
6. Data and planning will be the main aspects
Performance base and data planning are correlated to each other, for performance base the planning has to be there with both the parties. Now that companies and influencers are more at ease working together, you'll see more collaboration in campaign planning and a greater interest in analysing the social media marketing metrics that show brands whether the influencer they've found is worth the money they're paying them. While influencer networks have some analytics and reporting in place, lone influencers will need to know what social media metrics are necessary in order to keep their commitments.
7. Paid ads can help in getting a broader reach
Paid ads are not used whenever the brand is approaching influencers, since the brand has fully relied on influencers only but paid ads will help both brand and influencers to get good reach and will help to understand their target audience. It has chances to get good results, as the sales and the awareness can increase.
Let’s look at the conclusion of Influencer Marketing
As you may be aware, influencers were already a thing, but when Covid 19 struck in 2020, forcing the globe to enter a global pandemic and shutting down everything, there was an opening, or should we say a necessity, for online stores and digital influencers. We saw an increase in the dependence on social media for brands when targeting potential customers, and consumers when making informed purchasing decisions. As a result, this made an opportunity for influencer marketing, while others were suffering. Influencers were benefiting from reporting even higher engagement rates and an increase in their number of followers. Influencers took on a whole a new position of significance as a 72% increase in #ad content from influencers, where the growing trend of online shopping and reliance on influencers making product recommendations is predicted to have permanently changed consumer's buyer behaviour, both now, and shortly.
Digital 2021: Global Overview reveals that connected technology became an even more essential part of people’s lives. Social media, e-commerce, streaming content, and video games have all seen significant growth in the past twelve months.
● Social media users grew at the fastest rate in three years to 4.2 billion (Digital 2021: Global Overview)
● 54% of people are no longer paying attention to the amount of time they are spending on social platforms (Global Web Index, 2020)
● Trustworthiness is the trait people have looked for in influencers and creators following the outbreak of COVID-19 (Global Web Index, 2020)
The change in digital content consumption for brands trying to make lasting connections with consumers. As we start to enter this new world, influencer marketing gives brands a vital way of reaching cults in meaningful and applicable ways.