In 2021, the definition of success will be redefined and influencer marketing strategies will be more important than ever.
The world of influence is shifting, as are the brands who are trying to harness it. In this time where Social Media is all consuming, influencers have become a necessary resource for businesses looking to reach their target demographics. Influencermania has increased exponentially- we’ve seen it with the rise in pricing for sponsored promotion across platforms such as Instagram, Twitter, Snapchat and Youtube- and no industry can afford to ignore its potential in reaching customers anymore. Influencers are advertising machines that can cross oceans without taking a single step.
But why are influencer marketing strategies so important?
Let’s explore.
Why Influencers Are So Important?
There are several causes as to why influencer marketing strategies are the new necessity, but there has been a definitive shift in who and what can influence your consumers. Millennials have proven to be extremely difficult to reach, with a recent report indicating that only 50% of US millennials engage with companies at least twice per month, and even less rate customer service as being “very/extremely important”. Millennials have proved time and again that they aren’t actively seeking out brands to purchase from- instead preferring peer recommendations made by individuals they find relatable.
Targeting millennials in today’s world is really important
This is where influencers come in. If you’re looking to target millennials, the best way to do so is by incorporating influencers into your marketing campaign. According to a study by MediaKix, 92% of consumers are influenced by online reviews, and if you’re trying to reach millennials specifically, that number jumps up to 96%. Influencers have the ability to showcase products in ways that businesses can’t- they have the ability to make recommendations based on a more personal level of understanding.
A recent report from Forbes indicated that more than 87% of consumers trust online reviews as much as personal recommendations. By using influencers to represent your brand, you will not only be able to reach a much larger audience- but you will also be able to generate a much more successful campaign. This is because given the incredibly personal nature of influencer marketing, consumers tend to react and respond much more positively than they would towards other forms of advertisement.
Influencers have become an important part of any business’ marketing strategy, and the industry has been undergoing substantial changes in order to keep up with the ever changing environment. In fact, 71% of companies are using influencers to help expand their target audience- showing just how important this approach is for marketing strategies.
Influencer Marketing By The Numbers
With the huge influence that influencers have over your audience, it’s imperative that you’re able to properly analyze your campaign’s effectiveness in order to maintain ROI. According to a report from Adacquisit Corp., influencer marketing strategies can bring more ROI than traditional advertising and lead generation methods, such as ebooks and search engine optimization. This is due to the fact that influencers bring an entirely new and interactive experience for consumers, while also generating engagement from their audience.
With more than half of customers beginning their purchasing decision based on peer recommendations, it has become a much harder task for businesses and marketers to get in front of their desired demographics. It’s important to recognize that with each passing year, social media platforms will continue to mature, which means that influencer marketing strategies will become an increasingly valuable tool for reaching your target demographic.
With the extremely low cost involved with a social media campaign, businesses can reach people who may not have previously considered your product or services. Influencer marketing strategies can also increase customer retention- which is an exceptionally difficult task for businesses to accomplish. If you use influencers to boost your brand, you will stand out from other brands in a way that traditional advertising cannot.
The result? Increased conversions, higher brand engagement, and more loyal consumers. Not only are influencer marketing strategies increasing ROI for brands- but they’re also increasing the ROI for each individual influencer on your team as well.
Influencer Marketing ROI
Influencer marketing strategies have shown to be effective for unlocking brand equity and engagement- two things businesses need more of than ever. In fact, a recent report by The Votrax Group revealed that brands that use influencers to promote their products have an average ROI of 167%., showing just how profitable this strategy can be. What’s even better is that influencer marketing strategies are not only increasing the ROI for your business, but they’re also increasing the ROI for each influencer on your team as well. As you can see from the description above, influencer marketing has shown to be incredibly effective for increasing the ROI for each influencer.
By using influencers, you will gain the ability to generate a much more engaged audience than you otherwise would. This is because of the personal nature of an influencer’s relationship with their audience. Let’s take a look at how this works in real life:
Case Study: Penguin Clothing used Influencers to Reach Key Consumer Demographics
Penguin Clothing used a highly targeted approach when it came to reaching their target demographics- they utilized paid social posts led by a number of influential Instagrammers who had over 1 million followers. With this targeted approach, Penguin Clothing was able to increase their conversion rate by 715%, generate nearly 22x the ROI in clicks as compared to organic posts, and successfully grow their Instagram account’s page/s by over 23% between October 2015 and January 2016.
As you can see from the case study above, Penguin Clothing was able to achieve a number of impressive increases in ROI through influencer marketing strategies. Not only were they able to improve their ROI when it came to sales- but they were also able to see an increase in engagement rates as well. With each influencer that Penguin Clothing utilized- they saw an increase of over 1300% when it came to views and engagements on their account. The numbers don’t lie- influencer marketing strategies are an incredibly effective form of marketing, and you’ll be able to see just what a powerful tool this will be for your business.
Influencer Marketing ROI: Image vs. Video
As you can see from the next paragraph, it’s clear that influencer marketing strategies can dramatically increase ROI. This is due to the point that influencers are extremely good at driving conversion rates- but they’re also very good at increasing engagement rates. With relevant content that has strong imagery and video, you won’t only be able to increase your conversions- but you will also be able to generate much higher ROIs than before.