What is Influencer Marketing? What is its Impact and How Does It Work?

by | Aug 18, 2017 | 0 comments

According to Statistica, in 2020, companies in the U.S. will spend over $37 Billion in social media ad spending and influencer marketing plays a huge part in this…

Source: Statistica

What is Influencer Marketing

Influencer marketing is is taking advantage of a well-known celebrity or social media personality with a significant following on the social networks. As social space is more and more cluttered with ads it pays to have your brand leveraged by using influence as a marketing ploy. The issue becomes which one and how do I manage the influencer to get the expected marketing and sales results.

Studies show that a little over 90 percent of U.S. companies are and will be using social media for marketing purposes. In 2017, social messaging and video were thought to be the trends of the future in relation to social media advertising and believed to have the biggest effect on marketing strategies. Lo and behold, advertising spending on social video has been growing ever since, and is expected to amount to nearly 15 billion U.S dollars in 2021. Even in this respect, Facebook has the lead, especially when it comes to influencer marketing. In fact, all tiers of influencers – from microinfluencers to celebrities – post the majority of their videos on Facebook. The second choice of platform to share their videos is YouTube, which despite being ‘the’ video sharing platform is not as popular yet among influencers most probably due to smaller user reach.

Statistica

Your goal is to create a distribution channel to break through the ad clutter. Finding the right talent match that can help you do this is like a dating selection process – lots of people but you’re looking for the right match.

There are five key issues which must be addressed in selecting which influencer to use….

  1. Who is following the Influencer? Use of demographics and finding out the ‘engagement’ of the Influencer with his/her posse. Do they comment?  Do they tag their friends in comments?  The goal being to tap into the Influencer’s fan base (which are going to buy, use, and repeat buy) your product or service.
  2. Does the Influencer’s audience align with your target market? Just because an Influencer has a large fan following doesn’t mean he/she is a good match for your brand.  Certain personas may be terrific for you while others a complete wash-out.
  3. What’s the Influencer’s history? Follow the Influencer on social media before deciding. Create a secondary account and see how your prospective Influencer performs. Do they make questionable or controversial posts? How well do they fit into your marketing strategy? Vetting the Influencer thoroughly before signing up for their service is requisite.
  4. How affordable is the Influencer? Are they a celebrity, wide-range influencer, trailblazer, or microinfluencer? These are the broad categories in play and each level has its price. Your best bet is to mix as many levels as you can afford, keeping in mind your goals and which demographic you want to reach and engage with. No matter which level you choose, you must research the Influencer’s stats so you can negotiate a fair price — it’s quality and not quantity you’re looking for.
  5. What are YOUR goals? What are the expected results from your ad campaign? You will need to set specific benchmarks and KPIs — such as, awareness, reach, sentiment, or action and have a timetable for results.

Is Influencer Marketing for You?

In conclusion, the purpose of influencer marketing, like all marketing, is to generate new customers, while retaining the old ones. With the right influencer, your brand identity, as well as sales, could soar.

Furthermore, understanding a talent’s influence is essential to a successful match and the requisite marketing impact. Check out WHOSAY for more info.

Here, also, is a perfect example of how influencer marketing can go viral.

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By Jim Lavorato

Jim Lavorato is the founder of 4M Performance which is designed to assist businesses to survive and thrive in these uncertain times. Jim launched an entertainment-related company in 1988. He was at the forefront in cinema technology and helped spearhead the movie industry's transition to digital presentation and distribution. He also co-founded the Arboreal Group, an environmental consultancy. He has published articles on the motion picture and media industries and is a contributing editor for ScreenTrade magazine and writes a blog "Cinema Mucho Gusto". He is a certified SCORE Mentor in the SCORE Greater Phoenix Chapter and lives in Scottsdale, AZ. Learn more about Jim in his "About" page.

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