What is Influencer Marketing?
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What is Influencer Marketing?


Influencer marketing is one of those adverting jargon terms that no one understands, but is affected by every day. Influencer marketing is a form of advertising that is becoming more and more popular among companies worldwide. Read ahead to find out what influencer marketing is, how it affects you, and how you can use it to your advantage.

Traditional forms of advertising are created to directly reach customers. For example, if a popular drink company posts an ad online, that ad comes directly from the marketer to the consumer. This is not the only way that advertising can reach consumers. Buyers are also persuaded to try products by third parties that promote the product. This is influencer marketing.

How Does It Work?

Influencer marketing uses a recognised third party, like a celebrity, to promote a brand or a product to consumers. Businesses or advertising agencies mostly hire these influencers for money or other types of compensation. On rare occasions, influencers are inspired to sponsor certain products.

Influencer marketing aims to create the same effect for products as word-of-mouth has. People are more likely to buy a certain product if it comes recommended by a friend or a family member. Likewise, influencer marketing assumes that a recommendation from a well-known personality will have the same effect.

Influencer marketing is different from sponsorships. For example, Britney Spears, the famous pop star, appears in advisements for Pepsi to promote the brand. However, the key difference is that consumers are aware that Britney is appearing in an ad for money. Influencer marketing aims to get celebrities and other personalities to promote products in a seemingly more genuine fashion. It should appear as if this person is recommending the product based on his or her experience, not because they are getting paid for it. If Britney Spears appeared on a talk show and said “my favourite drink is Pepsi,” without ever appearing in an actual ad for the brand, it would be an influencer marketing tactic.

Famous influencer marketing examples include BMW’s “Drive for Team USA” campaign, Sprint’s campaign to acquire T-Mobile against AT&T, and Nikon’s partnering with Warner Music Group. Celebrities are often partners in influencer marketing. For example, Beyoncé is known to mention products like Givenchy, Cuervo, and D'ussé cups in her widely popular songs.

How Effective is Influencer Marketing?

Influencer marketing trends are rapidly rising. A good majority of modern consumers are cynical regarding advertising. Therefore, the majority of traditional forms of advertising are not effective in reaching modern consumers.

Influencer marketing is known to be highly successful in combination with other forms of marketing. That’s largely the reason why many big-name companies are turning to strategies like influencer marketing, native advertising, and content marketing to stealthily promote products and create brand awareness.

Consider the examples given. Most consumers are familiar with them. Influencer strategies can generate customer retention rates as high as 37 percent, according to a McKinsey study.

How to Use Influencer Marketing

Anyone can harness the power of influencer marketing with a good promotional strategy. However, it would require a considerable amount of money to secure a contract with a famous person. Influencer marketing works best if a number of personalities from different backgrounds recommend a product.

Before employing an influencer to promote your product, first consider if it’s the right strategy for your company. Secondly, consider whether or not the influencer is suitable to recommend your product. The influencer must have a stellar reputation to be associated with your product.

Influencers can work wonders for obscure products with little to no brand awareness among the public. Though it can be expensive, influencer marketing offers great returns for the investment.

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