Influencer marketing has been a popular marketing strategy for most brands over the past decade.
Unlike other digital marketing strategies, like social media and content marketing, influencer marketing involves positioning popular people as strong ambassadors of your brand or products to target their engaged followers. However, with the ever-changing digital marketing landscape, there are doubts about influencer marketing being an effective marketing strategy.
Is Influencer Marketing Worth the Investment?
With the right influencer marketing software, influencer marketing is worth every dollar spent. Below are a few statistics highlighting the effectiveness of influencer marketing:
- More than 80% of marketing experts believe that influencer marketing is still effective, and 89% think it works just well.
- Influencer marketing campaigns that focus on driving engagement and branding produce eight times the return on investment.
- Close to 50% of customers rely on recommendations from influencers when making a purchase decision.
- Less than 5% of marketers think that influencer marketing is an ineffective strategy.
These statistics clearly indicate that if you choose the right influencers, promote good products and services, and use the right platforms, influencer marketing can help brands achieve great results.
Why Is Influencer Marketing Effective?
Prospects and customers pay close attention to the influencer market for the following reasons:
1. No Display Ads
Display ads on Instagram and Facebook, Twitters’ promoted posts, and ad spots on TV channels have one major problem; ad impressions. This is the number of viewers who actually watched the ad. According to anIPG Media Lab and Magna Global study, businesses spent over $59 billion in 2020 on TV ads. However, there is no guarantee that viewers will see these ads. The same study found that close to 71% of television ads are viewable.
Audiences, customers, and prospects can change channels, switch tabs, or leave when a TV ad comes on unless the audience is engaged in live events, such as the Super Bowl or NBA. Modern customers also have multiple tools, such as ad-blocking technology, that block these ads. Interestingly, this isn’t the same way prospects and customers treat their influencers. They will opt into their live videos, opinion polls, and other engagements.
2. Hearing From a Trustworthy Source
The premise of influencer marketing is simple. Most people would trust suggestions and recommendations from people they know, even if they knew them through online presence. Even though the audience is thought to be discerning about online adverts, this doesn’t apply to word-of-mouth recommendations.
This is true as 84% of customers trust product recommendations from friends, family members, and colleagues. 92% of consumers aged between 18 and 34 always seek recommendations from family and friends before purchasing a product or service.
3. Better Targeting
Even though digital ads have better consumer targeting than traditional ads, such as billboards and magazines, they can’t compete with targeting from word-of-mouth marketing. Most people associate with others who share the same interests, values, and habits, including their purchasing habits.
For instance, 67% of American consumers will most likely purchase a product after a family member, friend, or social media icon shares it. Influencers can effortlessly beam appropriate content to their audience or followers.
Influencer marketing presents a unique opportunity for businesses. You can improve brand awareness and engagement by building relationships with engaged influencers who can support your marketing campaigns. Even then, finding the right influencer, using the right channel, and creating quality content is crucial.