The critical question when it comes to influencer marketing is whether it will last. While the industry has been around for a while — since the first influencer marketing platform in 2006 — it’s still considered young for marketing and advertising purposes. There are so many brands that have not yet dug into influencer marketing because they’re afraid that the market just isn’t there. But is that true?
Influencer marketing in the digital age is still very much an essential part of your overall marketing strategy. Our Trust in Influencer Marketing report showed that 92% of all respondents ages 18-29 follow social media influencers, and 36% say influencer posts and brand partnerships are the top way to get them to try a new product. Plus, according to statistics from the Digital Marketing Institute, influencer campaigns have a 650% return on investment (ROI), much higher than traditional advertising mediums.
If those statistics don’t help you believe that influencers are here to stay, then let’s talk about the benefits of influencer marketing. First, influencer marketing is the best way to increase your brand’s awareness and reach. When partnering with the right influencer for your brand, you can reach the audience that will resonate best with your product. It’s essential to make sure you’re working with an influencer who shares a passion for your brand and has authentic engagement with their audience.
Secondly, influencer marketing improves customer engagement and trust. The psychology of influencer marketing is real because of authenticity and relatability. 62% of social media users trust an influencer over an A-list celebrity because they feel they can trust them. So, if you’re working with an influencer who has a trusting audience, they’re more willing to check out your brand just based on the recommendation of their favorite online personality. Credibility is earned much quicker than when done from scratch or with traditional advertising methods.
Finally, another benefit of influencer marketing is the higher conversion rates and sales. As we mentioned earlier, campaigns with influencers have a 650% ROI, earning $6.50 for every dollar spent on a campaign. Influencer marketing still tends to be a lower-cost option for your marketing dollars with a big hit.
While there are many benefits to influencer marketing, that doesn’t mean it doesn’t come with its fair share of challenges and criticisms. That’s why finding authentic, well-meaning influencers is important. Using platforms like IZEA’s Marketplace to filter through the types of people you’d like to work with and making sure you’ve done your research on the influencer before working with them is imperative. Some of the challenges of influencer marketing are:
Fake followers and inauthenticity
This is where doing your research on influencers is of utmost importance. Take a look at their statistics with a special eye for engagement. Are they engaging with their audience in an authentic way? Are they putting up posts or videos that no one interacts with? Taking the time to really understand who you’re working with will help combat this issue.
Lack of regulation and transparency
Because influencer marketing hasn’t been around as long as some of the more traditional media, there is a lack of regulation and transparency. You may not know what other brands pay influencers or how to create a campaign with an influencer. IZEA’s Resources page is a great place to start to find the best way to put together a winning campaign with influencers if you’ve never done so before. Contracts and campaign briefs are important to keep
Diminishing returns and oversaturation
Because of the top two reasons, some brands aren’t seeing the ROI they hoped for in their campaigns. Plus, being an influencer is no longer a small, hidden form of marketing that only a few know about. There are hundreds of thousands of influencers worldwide and across all social media platforms, which is an extensive conversation around oversaturation. Some brands are seeing more success working with influencers with smaller audiences because they tend to have a more authentic connection with their followers than more prominent influencers.
Future of influencer marketing
The future of the industry is still unknown, but it doesn’t seem like it’s going anywhere anytime soon. It may even be heating up with the introduction of AI in marketing. Founder, Chairman and CEO of IZEA, Ted Murphy, has been deeply involved in discovering what he’s calling Generative Sponsorship. He believes that merging the power of AI and influencer marketing is the next step in the future of the influencer landscape.
Beyond AI, platforms rise and drop in prominence. TikTok has picked up steam in the past few years, for example. Platforms will continue to evolve.
No one sees the Creator Economy slowing down. If anything, influencer marketing should continue to be at the top of your marketing strategy, creating authentic online connections and driving business growth with influencer outreach.
