What is Influencer Marketing? Guide for SMBs!
Before 2010 when the social platform Instagram was released, very few people had ever heard of the “social media influencer” term. But in recent years, the idea of influencer marketing has really picked up and businesses, both large and small are leveraging on it. In fact, research suggests that in 2020 over 19% of marketers will spend between one and £10000 per year on influencer marketing. Another 18% of marketers will spend between £100 000 to £500 000, and an additional 7% of marketers will invest over £1 million into influencer marketing. But what exactly is influencer marketing and why is it becoming so influential?
What is Influencer Marketing?
Influencer Marketing is a combination of old and new marketing approaches. It takes the idea of celebrity endorsement and combines it with content marketing. Amanda Cerny. Nick Bateman. Tyler Oakley. What do all of these people have in common? They all have a large number of followers on their social media platform and are known as “influencers”.
Social media influencers are people who a) have a large number of followers on their social media platforms and b) have the ability to influence those followers. Influencers are often looked at with admiration by their followers and are often seen as experts in a specific niche (ie. clothing, travel, food, etc). For this reason, they have the ability to “influence” the decisions of others.
And for this reason, many businesses are now reaching out to influencers as a way of marketing their brands, services, or products.
Why Are So Many Small Businesses Using Influencer Marketing?
Simply put – because it works. When people see their favorite celebrity or influencer drinking herbal tea, they become inspired to drink that herbal tea themselves. When their favorite model is seen soaking up the sun at the Hilton resort in the Maldives, where do you think it makes them want to go? Influencers have influence – and that’s exactly what all marketing efforts strive for. It is vital to work with an influencer who resonates with your customer persona to get the best results.
Just how well does it work? Let’s look at the statistics:
● 89% of companies that use influencer marketing say that they see a better ROI than with other marketing efforts
● Almost 70% of teenagers say they trust influencers more than celebrities.
● 86% of women turn to social media for purchasing advice.
● Influencer marketing campaigns earn an average $6.50 for every $1 spent
● 60% of social media users make a purchase based off of influencer opinions
And with statistics like these, it’s hard to deny that influencer marketing is well worth each time, money, and effort.
So what is the goal of Influencer Marketing?
- To generate brand awareness
- To drive traffic to your website
- To promote sales and generate leads
- To attain a better conversion rate
- To attract followers and encourage engagement
- To boost your reputation among consumers
How Much Does It Cost?
It’s great that large businesses can leverage social media influencers to promote their products or services, but what about the smaller guys that are just starting out?
The best thing about social media influencing is that anyone can use it – including smaller businesses. Why? Because it’s affordable. Of course, the cost of advertising with an influencer will vary depending on several factors including the platform you choose, the number of followers they have, how much engagement they have, and so on and so forth, but on average you should expect to pay about £25 0 for a mid-level influencer on a platform like Instagram. The more followers, the more you can expect to pay. The fewer followers, the less you can expect to pay.
Is it worth it? To decide, let’s take a look at the costs of some other forms of advertising:
Television advertising (average) : £115 000 for 30 second national ad
Radio advertising (average): £200 – £5000 per week
Outdoor advertising (average): £300 – £800 for a small billboard
Magazine advertising (average): £500 – £20 000 depending on the magazine
So yes, we would say social media influencer marketing is well worth it. For a fraction of the cost, you can reach out to a massive audience around the world. Not only that, but statistics show that the return on investment is high, as is the brand awareness that you will generate. You may choose to work with a digital marketing agency for an influencer marketing campaign. This will save you time, money and generate better results.
