Did you know that leveraging Influencer Marketing helped Fashion Brand Nykaa grow at a CAGR of 68% since 2017 not only Nykaa but thousands of E-commerce Brands like WOW, Mamaearth, etc have spent crores on Influencers and generated a tremendous amount of returns with this.
It’s 2022 and 90% of people who have a smartphone and access to the internet are using at least one social media on their phone. With an increase in the number of users on different platforms, the number of social media influencers is also increasing day by day increasing the creator economy. So let us understand different aspects of Influencer Marketing and how you can use it to grow your business.
What is Influencer Marketing?
Basically, influencer marketing is a particular Brand collaborating with influencers to promote their products or services. Sometimes influencer marketing is done to improve the brand image or increase the brand recognition of that specific brand. An example of Influencer marketing involves Mamaearth. The company spends around 110CR. in 2021 on influencer marketing to sell their products, they got 4X revenue in return.
Influencer marketing creates a win-win situation for the company as well as the creator. They give the edge to the company to spend more on marketing with less cost. Influencers unlike celebrities can be found anywhere and could be anyone. They have a large chunk of the audience who follow them due to their content and influential personality.
They can be someone with great cooking or photography skills or who often tweets about marketing or any other subject. It is not necessary to have 1 million followers on social media to be called an influencer. You just need to have an authentic audience who can relate and coordinate with your content and build authentic connections with you online.
Why Influencer Marketing is Important for Today’s Business?
Talking about statistics a company earns a profit of $5.3 on every $1 spent on influencers. Well, that’s almost 5X ROI which helps companies boost their revenue source. The influencer economy has increased to $15.6 billion making it one of the most trending careers for most creators.
The Marketing survey states that 90% of people believe more in influencers than going to the website directly and purchasing the product or services.
Brands that already employ influencers to market their product have seen effective growth and no wonder that 17% of companies spend more than half of their marketing budget on influencers.
So to make your brand stand out and build authenticity this channel needs to tap in from a business perspective.
Let’s understand the types of Influencer Marketing
Social Media Takeover
This kind of influencer marketing works great for growing your social media followers and social network of a business account.
In a social media takeover, an influencer takes the account for a day or two and then operates it according to the strategies planned to market and promote the products. This type of marketing benefits both the influencers and the business.
Affiliate Marketing
It is one of the relatively cheaper and effortless ways to generate leads for the business. You don’t have to chase influencers to market their business. The influencers generate money when the follower from their account purchases a product after going to the website.
Businesses publish an affiliate program on the website and then the influencers publish links on their social media accounts.
Sponsored Content
This kind of influencer marketing often appears on Instagram. A Brand pays influencers to promote their post on an influencer’s account. Then this account is given to the agency to run ads reach out to more audiences and get more engagement on that particular post and account.
Unboxings
This is another type of marketing where brands send free gifts or products to the influencers to review and unbox them on their social media handles. It costs brands nearly nothing compared to the fees they pay influencers to market their products.
But there’s a slight risk involved in this. First of all the influencer might not open the box to review it and if they do and don’t like the product then they can post a critical or negative review for this.
Benefits of Influencer Marketing
It is one of the most effective ways to improve brand awareness, build authenticity cut marketing expenses, and grow the revenue of a particular brand. Here are some of the benefits which cannot be neglected
Content Strategy Enrichment
It is a golden opportunity to liven up social media. You can repost content published by influencers and ask their followers to create user-generated content gaining followers and real engagement. You can also use a particular influencer’s image to target a particular follower base.
Quality lead generation
According to statistics around 39% of brands, today use influencer marketing to generate leads for their business which brings around 67% more leads compared to other marketing channels. People generally develop a positive sensation around that brand when a particular influencer posts about it.
Cost Effectiveness
Influencer Marketing proved to be one of the most cost-effective ways to sell products and services of that particular business online. A well-thought-out influencer marketing strategy can drive better results for lower costs or even allow you to barter in the future. Another note on influencer marketing efficacy – on average, brands make $5.20 for every $1 spent on this channel.
Conclusion
Most of the time 35% of businesses waste their money on fake influencers who have no real audience and impressions on their account resulting in no sales of the product.
To leverage influencer marketing for your business and scale it rapidly you need to tie up with companies like Lineo who provide 360 marketing solutions to their clients. We have a network of influencers who are well-renowned personalities and have authentic audiences on their media accounts.
