The last few years have seen brands collaborating with influencers across social media channels to grow their brand value and reach social media audiences. The growth has been so dynamic that influencer marketing has become $8 billion industry by 2019 and is projected to be worth $15 billion by 2022.
The more powerful and proven influencers turned out to be, the bigger brands began putting their money on them. In 2019, 49% of marketers planned to spend more than $50,000 on their annual influencer marketing campaigns.
Apart from money, companies need to spend their time finding the right influencers, reaching out, collaborating with them, and running the influencer campaigns. Each of these tasks requires a good amount of research and time to successfully execute the influencer marketing campaign. The question is, why are the top brands and biggest enterprises investing in influencer marketing? Let’s look at some of the answers below.
Changing Consumer Behavior:
One of the biggest reasons why influencer marketing has seen a high surge is because of a changing consumer behavior. Today’s consumers prefer a non-intrusive form of marketing where they trust people and reviews over ads and promotions.
As per some of the statistics on the behavior of today’s customers:
- 51% of millennials make a purchase through social media networks;
- 49% of consumers depend on influencers to make a purchasing decision;
- 44% of millennials and Gen Z women learn about products from social media influencers;
- 52% of Gen Zers trust reviews by influencers.
As millennials and Gen Z become the primary targets of many brands, social media influencers seem like an inevitable choice to promote. Their generation needs a “human” variable to trust and influencers ensure that.
To reach the younger generation via social media, Poker stars collaborated with celebrities like Kevin Hart and Usain Bolt to create short video series #GAMEON. The video earned millions of views and attracted thousands of new users.
High Return on Investment (ROI):
According to the Tomoson study on influencer marketing, businesses earn $6.50 for every dollar spent on influencer marketing. The numbers are staggering and make you wonder if influencer marketing can really be that powerful. It should not be hard to understand that high ROI is one of the crucial reasons why brands spend on influencer marketing.
In an influencer campaign started by Silk Almond Milk, they collaborated with 258 fitness and food influencers to promote their “Meatless Mondays” initiative. The program was thoroughly tracked and measured for over a year and here are the campaign results:
- ROI of blog posts turned out to be 11x the ROI of banner ads;
- Users exposed to influencer marketing purchased $285 worth of Silk products.
When brands learn the art of collaborating with right influencers and create right campaigns, they definitely see huge returns.
Avoid the Clutter:
Countless stats can prove how cluttered social media platforms have become. It’s hard to get noticed or appear in search results even if you keep trying. Many new businesses that try to gain popularity on social media without ads or influencers fail miserably at reaching their audiences.
Influencers can help you cut through the noise and reach who matters. As influencers have audience deeply interested in their style and ideas, collaborating with the right influencers can help you reach your target audience.
Dunkin’ Donuts collaborates with nano influencers to generate buzz for their new Espresso line. Rather than only promoting through their social media, influencers helped them quickly promote their new product.
Create a Brand Perception:
Many brands are seen using influencers to create a new brand perception or brand image. They work with influencers who can redefine their brand value or help them portray a new image. Brands also leverage influencers when they launch new products, collections or start new ventures.
Snapchat, which itself is a social media app, collaborated with influencers on various social media platforms for their campaign #realfriends. The goal of the campaign was to ask users to connect with their real friends and family members. Snap started this campaign to differentiate its social media app from its competitors and leveraged influencers to pass the message.
Whether its high-end luxury brands like Tiffany or a startup like Gymshark, everyone is using influencer marketing to their advantage. Influencers have helped them promote new products, recreate a brand persona, and get more sales. So, get your marketing team buckled up while you add influencer marketing to your agenda in 2020!