There’s a plethora of brands today that are taking advantage of social media to grow. These so-called ‘influencer brands’ have built their businesses on the backs of influential personalities by using social media platforms like Instagram and Snapchat to reach consumers directly and drive sales with pre-purchase product placements.
This phenomenon is particularly prevalent among fashion and beauty brands, but it’s not something exclusive to those markets. In fact, any company that can find an influencer to promote its goods has the potential to see a positive ROI from its influencer marketing efforts.
Read on for details on how and why this strategy works, and how you can get started with your own Influencer Brands program.
Influencer marketing is growing rapidly and is no longer a passing fad; it’s become a key pillar of digital marketing for brands. According to research, the global influencer marketing platform market is expected to grow at a compound annual growth rate of 33.4% from 2022 to 2030 to reach USD 143.10 Billion by 2030.
This article teaches everything you need to know about the rise of the influencer brand and how it’s transforming the world of social media marketing.
What are Influencer Brands?
Influencer brands are companies that have partnered with one or more social media influencers to co-create and co-market a range of products; the influencer’s fanbase is then encouraged to buy these products. For the influencer, this can be a great way to monetize their social media presence. For the brand, this offers a direct line of communication with a highly engaged audience.
There is no set formula for what makes an influencer brand, and the term is still relatively new. However, it’s clear to see why brands are starting to adopt this strategy – influencers have always been able to drive direct sales for products. Still, this approach gives them a more official role as creative partners in the development process.
The Rise of the Influencer Brands
As we noted earlier, influencer marketing is a relatively new marketing tactic. But research shows that brands are already shifting away from traditional advertising and towards marketing strategies that rely on influencers.
According to the State of Influencer Marketing Report, 93% of marketers say they’ve implemented influencer marketing in their strategies. But less than half of them are satisfied with the results. However, almost 40% of Twitter users say they’ve made a direct purchase on the platform. And this suggests that marketers are still experimenting with the best ways to use influencers in their campaigns.
Once marketers settle on the best ways to use influencers, they may end up cutting back on traditional forms of advertising. Nearly 70% of marketers say they plan to increase the amount of money they spend on influencer marketing in the coming year.
With more resources moving toward influencer marketing and away from more traditional forms of advertising, the influence of influencer brands is likely to grow.
Gen Z consumers are also driving the rise of influencer marketing as they begin to enter their 30s. Meaning that marketers are increasingly focusing on the next generation of consumers. According to the report, 82% of Gen Z consumers say they trust brands that use “real humans” to advertise more than other forms of advertising.
How Influencer Marketing Works
The first step in setting up an influencer marketing campaign is finding and vetting potential influencers or a micro influencer. This can be done in many ways, including searching for hashtags on Instagram and Snapchat. You can also pay for data from sites like Traackr.
Once you’ve chosen your influencers, you’ll want to create an influencer agreement. Outline terms like the type of compensation they’ll receive, and the product they’ll be granted access to and the types of posts they’ll create.
Now, you need to decide where you’d like your influencers to post. Some of the most popular platforms for influencer marketing include TikTok, Instagram, YouTube, Facebook, and Snapchat.
Why are Brands Turning to Influencer Marketing?
The rise of influencer marketing can be attributed to different factors. First, the rise of social media has created a platform for consumers to engage directly with their favorite brands, personalities, and products. This has led to the creation of many influential social media stars.’ These stars hold huge sway over the buying decisions of their followers.
These influencers can drive direct sales for products by posting links in their bios and tagging brands’ products in their images. The emergence of ‘social shopping’ – where consumers research products and engage with brands directly via social media has created a new, important revenue stream for brands.
Influencer marketing is one way for brands to tap into this revenue stream. It also allows brands to interact with their customers directly through the preferred communication channels of Gen Z and Millennials – social media.
Why brands love Influencer Marketing
As more and more marketers realize, the best way to reach Gen Z and Millennials is through their social media feeds. People spend up to two hours per day in their feeds. This makes social platforms an incredibly effective way to reach an audience.
Furthermore, while the average person sees thousands of advertisements every year, they are much more likely to recall seeing an influencer’s post.
While hiring big-name celebrities to shill your product can be expensive, it’s much cheaper to partner with influencers. You can drive significant brand awareness and sales by working with smaller, more niche influencers.
When you partner with an influencer, you have the opportunity to forge a genuine relationship with your audience. Rather than paying for a flashy ad that feels inauthentic, working with an influencer gives you a chance to get to know your potential customers and genuinely connect with them.
Because influencer marketing is such an easily measurable marketing tactic, there’s less chance of producing a wasteful campaign. By comparing the ROI of different influencers, you can put your money toward the most likely successful campaigns.
3 Tactics to Grow Your Influencer Brand Strategy
1. Find your influencers
You can’t just start working with any influencer. Finding the right people to partner with is important, but it can take a significant amount of time. Investing upfront in finding the right influencers to work with will significantly increase your chances of a successful campaign.
2. Build a relationship
Once you’ve found your influencers, you’ll want to build a relationship with them. This means giving them access to your product. You’ll also support them in their social media endeavors and generally get to know them as people. Once you’ve established this relationship, you’ll be well-positioned to ask them for help.
3. Be transparent about your goals
When starting out, trying to work with as many influencers as possible can be tempting. While this may seem like a good idea, it will end up hurting your brand in the long run. By being selective about who you work with you’ll increase your chances of positive campaigns and ensure that your brand is represented in the best way possible.
Influencer marketing is a proven method for generating brand awareness, and it’s only growing in popularity. That said, it’s not a strategy that works for every brand or product.
To be successful, you need to be selective about the influencers you work with and the products you attempt to promote. To create an influencer brand, you’ll need first to find and vet the right influencers to work with, build a relationship with them, and make goals as clear as possible to achieve the desired result.
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