Influencer marketing may seem like a trendy new concept, but it actually draws on one of the oldest truths in advertising: Consumers trust word-of-mouth recommendations more than any other form of promotion.
The overwhelming majority (90%) of consumers say they’re much more likely to purchase from a brand endorsed by someone in their circle, even if they don’t know them personally. For this reason, influencer recommendations typically result in five times more sales than paid ads.
Currently, over 80% of businesses are using influencer marketing to help them build brand trust and reach more consumers, and the industry is expected to grow to over $16 billion this year (up from $13.8 billion in 2021).
Brands are investing more in influencer marketing partly because it’s a natural fit for short video platforms (e.g., TikTok and Instagram Live), and also because it offers the following advantages:
A very high return on investment (ROI).
Influencer marketing is highly affordable because the influencer takes an active role in creating, publishing, and promoting content, reducing upfront marketing costs. At the same time, it generates impressive long-term sales figures: Data from TapInfluence shows that the ROI of influencer marketing typically doubles after three months (without further investment), quadruples after four months, and increases sales 11 times over one year. Similarly, brands earn approximately $11 in revenue for every dollar spent on influencer marketing, compared to the $2 earned for every dollar spent on AdWords.
Excellent brand reach and visibility.
Influencer marketing is highly effective because it quickly cuts through the “noise” of social media and positions your products in front of interested consumers. Unlike paid ads, which most people quickly scroll past, audiences actively seek out (and pay attention to) posts from their favorite social media personalities.
Influencer marketing also boosts brand awareness over the long term by improving search engine optimization. Working with influencers increases traffic to your website, generates high-quality backlinks, and creates unique content featuring your brand, thereby improving your site’s rank.
Increased brand authority.
Influencers are trusted, respected, and liked by their audiences. When an influencer endorses your products or services, they lend their credibility to your brand, giving its reputation a significant boost. This bump in brand authority is invaluable for small businesses that have only recently entered the online marketplace.
Improved customer retention.
Not only does influencer marketing generate more sales than traditional advertising, but it’s also better at establishing long-term customer relationships. Research shows that customers created through influencer marketing tend to remain loyal to brands for longer periods, giving them a higher Customer Lifetime Value (CLV).
5 Tips For Getting Started With Influencer Marketing
One of the most common misconceptions about influencer marketing is that it’s only suitable for specific niches (e.g., the beauty industry or products catering to younger consumers). However, virtually every business – big or small – can benefit from this marketing technique, as long as they target the right demographic. Below, we’ll share six tips for setting up a successful influencer marketing strategy:
1. Set measurable goals.
What do you want to accomplish via influencer marketing? Do you want to increase traffic to your website, generate sales, or showcase a particular event, promotion, or marketing campaign? Clarifying your goals ahead of time is essential to ensure your efforts are focused, measurable, and deliver maximum ROI.
2. Identify the right influencers for your brand.
The right influencer for your brand is someone who is already popular with your target demographic and who creates authentic, relatable content. They should also be a good fit for your marketing budget and align well with your brand image.
For most small businesses, micro-influencers (those with between 10,000 to 50,000 followers on social media) are a better, more affordable option than online celebrities. Micro-influencers may have a smaller reach, but they’re usually highly engaged with their followers, which means their posts have more impact. Micro-influencers are also perceived as being more trustworthy than influencers with hundreds of thousands of followers.
3. Define the rewards you’ll offer your brand ambassadors.
Due to the popularity of influencer marketing, many influencers receive numerous partnership offers from brands. To ensure your proposal stands out, consider offering special perks in addition to financial compensation. These perks might include promoting the influencer on your social media channels, providing free products or services, or giving the influencer a commission on sales they generate.
4. Start building relationships with influencers you intend to collaborate with.
Promoting the wrong products or services could potentially damage an influencer’s reputation, so it’s normal for influencers to want to make sure the brands they work with are trustworthy. Before you approach an influencer with an offer to collaborate, help them get to know you by following their social media profiles and liking, sharing, and commenting on their content. Once you’ve established a rapport, formally introduce yourself and ask if they would be interested in working with your brand.
5. Work with a marketing consulting agency to develop an influencer marketing strategy.
Before you can successfully promote your products or services on social media, you’ll need a memorable, well-defined brand image, a marketing plan that aligns with your business goals, high-quality marketing materials, and a responsive, engaging website.
If you lack any of these assets, consider hiring an online marketing consultant before you start approaching influencers. A digital marketing professional can help you build your online presence and increase the chances that your collaboration offers get accepted. They can also find the most relevant influencers for your niche, reach out to them on your behalf, and help them create content that converts.
Get Expert Help With Influencer Marketing in Toronto
To discover how marketing consulting services can help you connect with influencers and grow your brand, contact the team at AllinBrand. Our diverse portfolio of web design, data analysis, social media marketing, and Online reputation management services will empower you to achieve your business goals – Affordably and on time.
