In July 2019, influencer marketing measurement company Instascreener reported that there had been an 83% year-over-year growth in influencer marketing spend. The second quarter of 2019 was the largest quarter yet for influencer marketing, with brands in the US and Canada spending a total of $442m. Clothing company Fashion Nova spent the most on celebrities and influencers, at a whopping total of $5.5m, closely followed by vodka brand Ciroc at $3.4m. This study comes off the back of research by Whalar, who found influencer marketing adverts to 277% more ‘emotionally intense’ and 87% more memorable than traditional TV ads.
It’s clear that businesses need to spend more on influencer marketing and use more social content to grow their brand. Let’s look at exactly what influencer marketing is, and why companies are plunging money into it.
Influencer marketing: the basics
Influencer marketing is marketing which uses key content creators – ‘influencers’ – to drive engagement around a brand’s product or message. An influencer is a social media user with a large following, generally anywhere from a few hundred to several million followers. They specialise in targeting a particular topic, discussion, or niche area. In doing so, they generate a highly engaged and loyal digital audience. It’s the unfortunate truth that traditional paid ads are losing their effectiveness. Audiences are so exposed to them that they are tuning them out, rendering them almost useless. By contrast, influencer marketing is designed to provide useful content and information for consumers, as a subtle means of promoting a product or service. To have more reach you can continue reading.
Should my company be spending on influencer marketing?
Put simply, yes. Influencer marketing delivers huge rates of engagement, which you should take advantage of if you’re looking to grow your brand, have a look at the TikTok’s popularity. If influencer marketing is done properly, audiences get the chance to experience your product or service through a real, authentic voice, giving them a much-needed breather from traditional, monotonous adverts. Influencer marketing is a great way to build trust with the consumer, improve brand awareness, effectively reach your target audience and provide them with something of true value.
How much should I be spending?
It’s recommended that businesses spend 25% of their digital marketing budgets on influencer marketing. Whilst content marketing is firmly established (with 57% of marketers having stand-alone budgets for it), influencer marketing is quickly becoming mainstream, with more than a third of brands budgeting for it, too. Research has also shown that companies are planning ahead to increase their influencer marketing budget, with only 4% of firms choosing not to pursue it.
Where should my money go?
If you want our advice, social marketing agencies are worth investing into, as they take a lot of the work out of your hands. Influencer agency Socially Powerful, for example, untangles social media platforms, conversations and influencers for you, placing your brand exactly where it needs to be to deliver the best results. Their technology also prevents fake sponsored content and brand engagement.