If you’re involved in the world of e-commerce, influencer marketing is nothing new. In the past few years, it has become the norm to partner up with cool bloggers and the it-people of Instagram. But as time has gone on, this marketing strategy has become more complex and refined, making it harder to navigate the influencer jungle.
Even though the majority of online fashion retailers use influencer marketing in one form or another, it’s often hard to measure how effective it actually is. Let’s have a look at what influencer marketing is, how your brand can benefit from it, and last but not least: Is it still hot in 2020?
What is influencer marketing?
To understand what influencer marketing is, you need to understand what an influencer is. An influencer is a social media personality who has managed to create a platform where they publish content suitable for their audience, or ‘followers’ in this case. Basically, they have already done half the job for you: they have found a good potential customer base for you to piggyback on.
Influencer marketing is all about teaming up with the cool people, or at least having your brand associated with them. It’s a consumer-friendly way for businesses to gain brand awareness in influencers’ channels.
What do you want to achieve with influencer marketing?
If you’re planning to get into influencer marketing, the first step is to map out why you want to do it. What are your expectations and what goals do you want to reach? The usual results from influencer marketing are the following:
Raise brand awareness
The number one result you should strive for is creating a buzz around your brand. Having other people (with impact) talking about your brand will spread the word to a wider audience. Having influencers saying that they love your brand and trust you will also make their fans trust you.
Reach out to new people
Influencer marketing is a lot about piggybacking on the audiences others have built. Look at the influencer and their fans, and evaluate whether this is the audience you want to reach. This is a great way to make new people aware of your products or services!
And last, but not least, the main goal is to get conversions. Generate sales of a product, gain new leads to your service – whatever your specific conversion target is, this should be a goal when doing influencer marketing. Usually, special offers or discount codes are very effective when it comes to converting new customers.
To be able to follow up on your goals and results, make sure you have tracking in place which measures all aspects of impressions, engagement and conversions.
3 interesting influencer marketing stats
Reach a high ROI with influencer marketing
As an online retailer, you want to know that your marketing efforts deliver a strong ROI. Well it seems like that box is easily ticked with influencer marketing, since 89% of retailers who use this strategy say that the ROI from influencer marketing is comparable to or better than other marketing channels.
Instagram is the sh*t
With its 1 billion users, Instagram has become a powerful media house. It ranks among the most important and impactful channels when it comes to influencer marketing. Even though the more established channels Facebook and Youtube remain more popular, Instagram has a proven benefit within influencer marketing, thanks to its ease of photo sharing with direct links to followers.
A study from Mediakix shows that the most used format for influencer marketing is Instagram posts, followed by Instagram Stories, then Youtube videos and Instagram Videos. 78 percent voted for Instagram as their number one choice. A single post doesn’t require much production time or cost, making it an affordable option – especially for smaller companies with little marketing budget. Even so, Instagram Stories have gained a lot in popularity. With Snapchat starting the trend, Instagram Stories now has over 500 million daily users.
The channel companies prefer the least for influencer marketing campaigns, however, is Snapchat. It’s more difficult for fans to find influencers on that platform, which makes it tricky for companies to reach out to a certain target group via influencers there.
This is how much companies spend on influencer marketing
Did you know 17 percent of companies spend over half of their marketing budget on influencers? This shows how important influencer marketing has become for companies, especially within e-commerce, even if some are yet to fully embrace it.
When it comes to budgets for influencer marketing, 19 percent of companies had a budget of $1,000-$10,000 in 2019, and 18 percent budgeted $100,000-500,000. 7 percent were planning to go all-in with a budget of one million dollars. So we can see that influencer marketing is suitable for both smaller and bigger brands.
These budgets equate to an increase in spending of 65 percent on average, compared to 2018.
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To conclude: Is influencer marketing still doing the trick?
To keep it short: Yes it is. Here are some key takeaways showing that the belief in influencer marketing is still strong, and the strategy doesn’t seem likely to leave the marketing scene anytime soon:
- 80% of marketers find influencer marketing effective
- 89% of marketers say that ROI from influencer marketing is as good as or better than other marketing channels
- 71% of marketers rate the quality of customers and traffic coming from influencer marketing as better than other channels
- 65% of marketers planned to increase their influencer marketing budgets in 2019