Rise in Influencer Marketing Wave
There are no celebrities involved in influencer marketing. Instead, it’s about influencers, people who are influenced by their content or the
Kind of trends that they follow. In fact, in most cases, it’s the other way around and today celebrities are turning into influencers by trying to dominate and stay connected with their followers
Fans on social media.
“People don’t buy goods and services, they buy relationships, stories and magic.” A great quote from Seth Godin clearly defines how marketing strategies should be built. Consumers are looking for products to invest in. This growing awareness was the growth platform for influencer marketing and has today developed into a large game changer within the marketing corpus. According to a recent report, this sector is expected to reach $ 13.8 billion by the end of 2021. Given the importance and growing periphery of influencer marketing, we spoke to experts to learn about the top trends, new strategies, and growth factors they notice.
Influencer marketing refers to a trend in which products and services are advertised on social media platforms through a celebrity or an influencer. For this type of marketing, product mentions and recommendations from influencers become the most important tool. This is because opinions matter and in this case the influencers “influence” the customer or tell the customer what works and what doesn’t. This is one of the most lucrative ways of marketing today and builds trust with customers, and the influencers’ referrals serve as social proof for the brand’s potential customers.
With a high number of followers, influencers are now the new opinion leaders who actively contribute to customer trends in various categories. The influencers are also tagged in a variety of ways based on various parameters like follower strength, what they mainly rate, etc. With the aim of helping consumers make better decisions and helping them make well-informed choices, influencers use tons of tactics to get their thoughts across. From product reviews and brand integration to reels and videos, influencers always plan the right path to make a mark with their customers.
Brand Marketing vs. Influencer Marketing: How Do Brands Make Decisions?
Both marketing methods fall into the landscape of modern marketing techniques with the aim of generating high sales, building brand loyalty and achieving higher brand awareness. About Working Tactics Bewakoof Founder and CEO Prabhkaran Singh said: “Currently, our influencer marketing spend is less than 10% of our total marketing budget. However, we plan to use its potential more aggressively as we have had good results so far and will scale our investments in this particular segment. ”This clearly shows that the fashion brand’s traditional marketing methods are more successful for the company. For Jatin Gujrati, Business Head of Vedix – a popular skin care brand, things were completely different. The brand communicates its message to the target audience. In our last campaigns we have already implemented influencer marketing and achieved great success with it. “. This suggests that a company is making a call to influencer marketing in every category it exists.
One of the most important questions for influential marketers is, “How do you target non-millennials”? (People who don’t use social media). To answer this thought, brand marketing has taken on a major pioneering role as brand campaigns broadcast on television, radio and various other formats make the brand’s message more and more accessible to a larger audience. When he talked about it, Prabhkaran Singh replied: “Currently, we are not dividing or targeting audiences outside of millennials separately through influencer marketing. However, we are reaching them through other forms of paid digital marketing media. ”And Vedix makes minimal effort as its target audience is only the Millennial group.
‘How to choose the right influencer for your brand’ is an uphill battle, otherwise the entire marketing campaign is of no use. Depending on reach, relevance and response, there are different categories of influencers such as nano influencers, micro influencers, macro influencers and mega influencers. Most brands pick up the influencers with a specific goal. Singh spoke about this, saying they choose influencers by roughly reviewing two areas, social media performance and how they resonate with their brand. Vedix’s Jatin Gujrati believes the influencer should match the brand personality and other metrics like engagement rate and reach.
Aside from influencer marketing, there are various marketing methods that are becoming popular with netizens such as merchandise marketing, email marketing, POP marketing, and others. Singh replied, “Merchandise marketing, be it pop culture merchandise or lifestyle products, goes very well with the way influencer marketing works in general. We believe there is a good synergy between the two and it will continue to grow together. Your company is also using techniques like paid ads on Facebook, Instagram, Google, and YouTube along with SEO, organic social media marketing, CRM, affiliate marketing, and partnerships to drive the marketing effort. ”At the same time, Jatin believes that merchandise- Marketing is more tangible and stays with customers longer, and they believe that content marketing has grown dramatically and that content is the only way brands can connect with customers.
Reasons for the rise of influencer marketing
In a world that is now heavily dominated by the digital route, influencer marketing has become a major game changer. Celebrities used to take over the market, but social media marketing changed the whole game through its effectiveness and affordability. Main credit for this change goes to Millennials and Gen Zs who run the entire show. According to ClickZ, 22% of users in the 18-34 age group make purchasing decisions after looking at celebrity recommendations. These statistics clearly show that the brand image today is built to a greater extent by the influencers.
Digitization also gives you quick feedback, which helps the brand understand what to do and what not to do. The growing popularity of influencer marketing brings tremendous ROI to the company. Singh replied, “Our marketing spend is in the same planned ratio with a focus on profitability and brand growth. However, after the pandemic, we saw a shift in advertising costs that made it cheaper to reach audiences as more people stayed at home and online shopping and consuming social media, and other offline players reduced their advertising investments. This change is about to normalize to pre-pandemic numbers. “
The main reasons that influencer marketing has come a long way over other marketing methods are:
- Small Budget, Big Impact: One of the biggest advantages of this method of marketing is that you don’t need a large budget to get started. You can hire influencers from Rs 5,000 to Rs 50,000. And it’s also found that influencers with smaller fan bases can generate high revenue with an engaged audience.
- Build Authenticity & Trust: The influencer will build trust with the audience as they can present the campaign from a different perspective and the influencer’s audience is eager to know what he / she is thinking and this can lead to the consumer’s buying decision .
- Track influencer success: With this method, the success of a specific campaign can be displayed at the same time by specifying a URL. The URL can provide you with ongoing updates and the revenue generated by each influencer.
Influencer Marketing is a game changer for retail
In retail, word of mouth marketing has a huge impact on the buyer. It used to be practiced directly by talking about the brand, but now social media has changed the game as a whole. A report by Market Force found that 81% of consumers make decisions based on their friends’ social media posts. Whether it’s food, beauty, fashion, insurance, gaming or others, every sector focuses on influencer marketing for huge profits. Now the influencers are practicing paid partnerships, sponsored posts, and reviews that have a positive impact on customers. Jatin believes influencer marketing plays an important role in retail and online brands as all media consumption presence takes place in an online medium. Again, Singh of Bewakoof believes it has already become a game changer as there are so many examples of D2C brands driving their growth through the power of influencer marketing alone.
With brick and mortar retail stores closed and physical events canceled, big brands have moved to an omnichannel approach, and influencer marketing is now the page for the help. Creators are becoming the cornerstone of any marketing strategy. Jatin went on to tell us that post-pandemic strategies have changed and there is no one way to define them. We experiment with different things, sometimes it succeeds and sometimes it fails miserably. Our focus is on creating unique content that is relevant to our target audience. We are focusing more on ORM, as post-COVID is reaching us more and more customers via social media platforms. While Singh told us that their marketing strategies haven’t changed much. We are currently seeing a change in advertising cost efficiency and are firmly convinced to invest more in the digital marketing approach.