Introduction to Influencer Marketing
Historically, word-of-mouth marketing has been one of the most effective marketing techniques. Influencer marketing takes the idea that if someone they know and trust suggests a good or service, people are more willing to give it a try. Also, updates it for the current digital era by partnering a business with an individual who has an expertise and a sizable online following.
In 2023, across all social media platforms, it cannot be overemphasized how frequent individuals are being used by brands to promote their products. To this end, influencer marketing is not a strategy to be overlooked.
For the purpose of marketing their goods and services, companies collaborate with people who have a sizable social media following and are trusted by the media community. This is referred to as influencer marketing. By working with influencers, companies or brands stand a chance to place their products or services at the forefront thereby increasing their conversion rate and making these individuals middlemen between their brand and products.
History of Influencer Marketing with examples
Influencer marketing can be dated back to the periods of Roman Gladiators and the idea of Santa Claus we have been exposed to. You might be wondering what Roman Gladiators and an all so cheery man have in common? So, before your imagination goes too crazy, be informed that they have both taken part in fruitful influencer marketing efforts. Contrary to common opinions, influencer marketing did not begin at the same time that social media users began uploading selfies. In reality, it has existed for a much longer time—for millennia even.
Some of the examples of influencer marketing before the advent of social media includes:
Aunt Jemima
Nancy Green was chosen by R.T. Davis Milling Company to represent Aunt Jemima, a new brand of pancake mix that is based on a well-known character from a traveling minstrel performance. Green provided the Aunt Jemima brand a distinctive personality that contributed to its longevity as a household name.
Despite the fact that Green’s moral integrity and devotion to the brand helped the business attract generations of customers, there is evidence to show that Green received little to no compensation for her work. Aunt Jemima was identified as a racial stereotype by Quaker Oats in 2020, and the company declared its intention to alter the name of the pancake mix and remove Aunt Jemima from its packaging.
Coca Cola promoted by Santa Claus
In 1931, Coke made a move into the field of influencer marketing when it presented Santa Claus as the cheery grandfather figure that most people know and love today. Santa used to appear in a variety of ways prior to the company’s advertising campaign, none of which you would want to find coming down your chimney.
Coca-Cola knew it couldn’t just tell people their product was good. They required a spokesman that people trusted, a necessity that is even more pressing now given that 92% of customers think they are more likely to believe social media suggestions than brand-specific advertising. With the campaign, marketers may use influencer marketing to create a halo effect. Santa served as evidence that people will love a product (and brand) if they adore the person who is pushing it.
Marlboro Man
The Marlboro Man was arguably the coolest person in the 1950s.The cigarette symbol was represented by a variety of actors, which contributed to his notoriety. Furthermore, The Marlboro guy not only popularized smoking as a manly pastime but also influenced a generation of men who aspired to a more rough appearance. One of the most important figures at the time, The Marlboro Man continued to support the company through 1999. Today’s social media influencers have replaced cultural figures like The Marlboro Man and help define what’s in and what’s out of style.
The examples prove that influencer marketing has always been a relevant strategy in marketing a brand or company’s product or service. It is also evident from the historical perspective that influencer marketing does not start and end with social media. Influencer marketing spreads across television adverts, radio adverts, billboards and much more.
Influencer marketing in 2023
Influencer marketing has grown so popular that businesses are constantly creating platforms to aid in the selection and search of influencers, as well as to make the process transparent and simple for both brands and influencers. There are currently several businesses that are dedicated to offering services in influencer marketing. Several conventional firms have expanded their range of services to include influencer marketing since they don’t want to lose business.
According to the b2bhouse.com, spending on influencer marketing is anticipated to increase by 15.9% and 23.4% YoY in 2023 and 2024, respectively. By 2024, influencer marketing spending is expected to generate $7.14 billion in total revenue (up from $4.99 billion in 2022). The numbers undoubtedly prove that influencer marketing is not about to run cold. It can also be noted that 92% of marketers believe that it is a very effective form of marketing.
Some of the reasons to inculcate influencer marketing in a company’s strategy includes:
- 16.4 billion dollars growth in 2022
From the pandemic period in 2020 up until 20222, there has been an incredulous growth in influencer marketing. Influencer marketing’s market size is projected to have increased from just $1.7 billion in 2016 to $9.7 billion in 2020 and then further to $16.4 billion in 2022.
- Significant Growth in “Influencer Marketing” Searches
During 2016, searches on Google alone for the term “influencer marketing” have increased by 465%. It is obvious that this is a current hot issue, which has increased interest in learning more about influencer marketing and locating influencer marketing platforms and firms. The year 2019 was extremely hectic, with “influencer marketing” searches rising by 1500% between 2016 and 2019. However, since then, searches have slowed significantly as influencer marketing has become more widely accepted.
- Influencer Marketing Budget
As much as influencer marketing is as old as the Roman Gladiators, it has become to firmly established that 59% of companies dim it fit to budget for this purpose. Since influencer marketing has become so commonplace, 75% of those who responded to our study said they will allocate money to it in 2023. This percentage has increased significantly from the 37% who said they would do so in 2017.
- Marketers judged it to be effective
Influencer marketing is undoubtedly beneficial in the eyes of marketers and companies, as seen by the recent surge in the production of fresh content. Influencer marketing is seen as an effective marketing strategy by 90% of study participants. As this number has remained almost unchanged since 2017, it is apparent that this favorable attitude toward influencer marketing will endure.
Influencer marketing, however, is not going away any time soon, that much is certain. Now is the ideal opportunity for firms that haven’t yet gotten on board to begin utilizing the creator economy and utilizing the social media influencers that your audience already knows and trusts.
Influencer Marketing and B2B
Although commonly considered a B2C tactic, influencer marketing is a potent tool. Yet, B2B influencer marketing may have substantial effects and advantages for your company. B2B influencer marketing is the practice of boosting your company’s name, reputation, goods, and services by working with influencers.
It’s critical that you comprehend the distinction between B2B and B2C influencer marketing. When compared to requesting an influencer to organize a product giveaway or create an unboxing video, working with B2B influencers is more difficult and collaborative.
Most times, the biggest difference between B2C influencer marketing and B2B influencer marketing are the types of influencers. B2C marketing focuses more on reaching customers and B2B focuses more on reaching businesses. The process involved to get this done might be a bit tougher and demanding but it is possible. Some of the types of influencers for B2B includes podcasters, authors, organizations, thought leaders, etc.
Some steps in building an effective B2B influencer marketing strategy includes
- Companys goals and KPIs should be established. That is, the company should define what they would like to achieve from the campaign and make plans or strategize towards that. Whatever goals that are selected, key metrics that would help define the goals should be used.
- A budget should be drawn up for the influencer campaign. It is one thing to have goals and plans to use influencer marketing, however, using influential figures can be costly. Therefore, setting aside a budget for the marketing strategy should be implemented.
- Knowing a brand advocate can be a plus to the company. That means, having people who are already familiar with the brand and using them as influencers could be a plus to the organization.
- Identifying influencers your audience know of would be a more effective way of going about influencer marketing. This is because, there is already an inbuilt association they would undoubtedly strengthen the credibility.
- It is without doubt that before a company moves on with an influencer partnership, they must have analyzed all potential candidates considering the company’s goals, the influencers reach, their audience engagement and their knowledge in the industry.
Examples of B2B influencer marketing
Time Warner
Time Warner Business Class highlighted the value they provided to other organizations by using video testimonials from significant, prominent clients. Green Dot Public Schools and Spectrum Enterprise were two of the people that provided testimonies. The films supported eBook downloads and clarified the value of Time Warner Business Class for mid-market companies.
Video Fruit
Businesses may purchase software, coaching, and training from Video Fruit to support their email marketing initiatives.
Bryan Harris, the brand’s founder, started writing guest pieces for other authoritative websites in order to offer thought leadership and increase traffic to the Video Fruit website. This is an example of B2B influencer marketing.
As a result, there were more page views, subscriptions, and visits overall.
Importance of Influencer Marketing
1 It creates Brand Awareness/Recognition
While influencer marketing gives you the chance to target a certain demographic, it also helps you build brand recognition. Your brand exposure will rise as a result of influencers, who are pros at recommending products and services to their followers on a personal level.
2 Market Reach is increased
Influencer marketing has demonstrated its ability to swiftly and successfully establish your brand in a new area, such as abroad. One excellent example is the Swedish watchmaker Daniel Wellington, which has had remarkable success spreading its brand recognition throughout the world because to its use of influencer marketing. Without influencers using social media, it would be challenging to reach out to so many nations in a short amount of time.
3 Provides Real Time Result
You will be able to measure conversions in real-time if your marketing objectives, for instance, are for customers to download your app or make a purchase from your e-commerce site. Because the consumer behavior decision-making process for these kinds of items is so quick, fast-moving consumer goods, like shampoo or a beverage, have the highest possibility of producing rapid conversions.
4 Increased Conversion
The main goals of every company are to increase sales and profit. Influencers have the ability to attract additional customers to your goods or services. This is because customers believe the advice given by their preferred influencers. This is a tool that brands may employ to sway consumer choices and increase conversion rates. It is clear that influencer marketing works well for attracting new clients. It assists you in generating more leads for your company, which ultimately results in higher income.
5 Increase trust and Credibility
The trust of their followers gives influencers their greatest power. Because of this trust, they are able to grow devoted fan bases. When an influencer offers their frank opinion of your good or service, it is taken as a sincere recommendation. It improves the reputation of your company and boosts your trustworthiness. Hence, working with influencers might help you gain the audience’s trust. In the long term, this is crucial for creating a strong brand advocate army. It further raises brand recognition and consequently aids in your ability to generate more income.
6 Precise Targeting
Any marketing plan must include the proper audience identification and targeting. Unfortunately, it is sometimes a laborious procedure and necessitates a thorough comprehension of your prospective clients. This is because influencers have already done the hard work, you may skip this stage by using influencer marketing. Simply make sure the influencer is pertinent to your market and that your brand’s image matches their public character.
7 Generate Leads
With influencer marketing whether micro, macro or nano influencer, you are able to connect with people who are probably interested in the goods and services you offer by implementing influencer marketing campaigns. You might find it simpler to boost your conversion rate as a result.
8 Renewed Content Strategy
The creation of interesting material for their audience is how influencers make a career. Working together with them helps to reframe and broaden the scope of your content strategy. Furthermore, content that includes influencers is frequently perceived as being more genuine and reliable. Your audience will probably spread the word about it to their networks if it resonates with them in the appropriate way. By doing this, you make your material more visible and reach an audience that might not have otherwise been reachable. You may access a wealth of user-generated content by collaborating with influencers. Sharing this type of material will alter how your followers view your social media presence.
9 Cost Effective
The cost-effectiveness of influencer marketing is another key advantage. If you want to employ this strategy, provided you work with the appropriate people, you could see a sizable return on your investment. Therefore, the more effective the content strategy, the higher the returns and the more effective the cost
Influencer marketing is advantageous for both B2B and B2C businesses. If you use this marketing strategy well, you can expand your audience. Influencer marketing is a well-liked strategy for a variety of reasons. It’s not only a rapid approach to improve brand awareness, but it’s also an affordable option to put your company in front of customers who are probably interested in your goods. For the campaign to be successful, you must choose influencers who are a good fit. If not, you risk damaging your company’s reputation.
Visit www.adspace.ng to know more about getting an influencer for your brands on all advertising platforms.
