Taylor Digital

The Why and How of Influencer Marketing

Last year, 26% of desktop users turn on ad blockers, rendering traditional advertisements to be ineffective.  It’s clear the methodology of traditional advertising has changed; billboards and ads are becoming less and less, and even commercials are on the out, thanks to the roughly 812,000 people cutting the cord on cable in 2016. Instead of advertisements, people are turning to the opinions and recommendations of their peers and popular social media personalities.  Called “Social Media Influencers,” these internet personalities have the impact and influence on their followers strong enough to not only create awareness but also to cause brand conversions.  

What is Influencer Marketing?

Influencer Marketing is the process of engaging social media influencers to post sponsored content in order to drive sales and brand awareness.  Social media personalities who have a trusted and loyal following are paid by companies to advertise how they use a brand’s product or service.  Basically, they become walking, talking, trusted billboards.  

Not only are they pictured using a product, Facebook live video and Instagram stories have taken influencer marketing to a new level: users are able to see a product and its practical application in real-time, with zero possibility for smoke and mirrors.  In addition, Instagram has made it especially easy for consumers to learn about or to purchase products by allowing some brands and influencers to add a link to their stories.  

Influencers are paid exactly as regular advertisements are paid, making an easy budget it provided that influencer marketing it makes sense for your brand.  We recommend doing a series of A/B testing against your traditional advertising methods to see if you are getting the ROI (Return On Investment) that your company needs.  

ROI from Influencers

ROI can be measured in many different ways.  While conversions give us tangible, instant gratification when it comes to monetary numbers, ROI brushes with a much broader stroke.  ROI is measured exclusively on the efficiency of an investment, which isn’t always proven with an increase in the monetary numbers right away.  ROI could indicate these factors:

All roads lead to monetary gain in order to satisfy the bottom line so that we can all stay in business. So eventually, ROI will lead to conversions; however, the path to conversions is saturated with different measurements.  According to recent studies, though, the ROI from social media influencers is 11 times higher than with traditional advertising.  

In part, this is due to the landscape of social media, as well as the trust level of personal recommendations.  74% of people use social media platforms to inform their purchase decisions, and 92% of consumers trust personal recommendations for new products or services.  These numbers are telling, and the market opportunity we are missing out on if we don’t engage influencers is too large to pass up.  

How to Find Influencers

The steps to finding influencers for your brand are as simple as the age-old 5 W’s and an H.  Asking yourself the following questions will help your brand identify influencers and start harnessing their voices on your behalf:

 

 

What do you think?  Are influencers the future for digital marketing?  Have you seen this work to your advantage in your company, or did you switch back to traditional methods?  Join the conversation and let us know what’s worked for you!