What is Influencer Marketing and Why Does It Matter?

Social media platforms are the new advertising battleground with influencers as the soft-sell spokespersons

Once upon a time, print, radio, and TV ads ruled. Clever copywriting, striking visuals, celebrity endorsements, and user testimonials were the norm. Then came the Internet and social media platforms. With consumer attention now scattered across multiple platforms, ad messages are having a hard time finding their audiences. Today, a savvy business adds a social media influencer or two to their advertising mix.

Why?

Because many people now follow influencers, not brands.

What is an influencer?

Social media influencers are independent personalities popular within a certain niche or area of expertise. Furthermore, they have an avid group of online followers who trust their opinion on whatever they talk about, including products that might be shown in their online posts.

Amazon’s Alexa blog suggests an influencer could be:

• A blogger
• Social media personality
• Celebrity
• Industry expert
• Thought leader

Not all influencers are the same. An Upfluence study published within a 2021 Influencer Marketing Hub report divided influencers into six categories based on the number of followers and listed the social media platforms where they post.

As you can see, the larger the following, the smaller the percentage of actual engagement.

Influencer Marketing Hub also noted that most influencers use Instagram. That’s followed by YouTube, Facebook, and a quickly rising TikTok. Twitch is popular for gamers.

What is influencer marketing?

W Tech Software gives an excellent explanation:

“Influencer marketing is a hybrid of old and new marketing tools. It takes the old celebrity endorsement idea and uses content-driven marketing campaigns with trusted-within-a niche influencers instead. The main differentiator in the case of influencer marketing is that the results of the campaign are collaborations between brands and influencers.”

In other words, the influencer retains his or her own unique style of presentation to impart a brand’s message. That’s why it is so important to find an influencer who “gets” the brand. Because an influencer isn’t going to compromise his or her own unique style or do something that will come across as false to their online followers. Trust is everything.

Wired.com puts it this way:

“Users consider influencers more akin to a close friend than an advertiser or paid endorser, as the stream of content they produce—and the more casual way in which it is shared with the public—imbues influencers with an air of authenticity that is rarely seen in semicommercial spaces.”

If a brand chooses to go this route, upfront discussions with social media influencers should include just how he or she will incorporate the brand into their posts. Influencers can choose to simply mention a brand or share some content about it on a one-time basis. Or they can become a spokesperson for the brand, often sharing about it. Or they might cover the latest news from a brand, creating their own unique content.

Is influencer marketing really a big deal?

Influencer Marketing Hub has put together some marketing statistics that show just how massive this form of advertising is.

• Influencer marketing is expected to grow to be worth $13.8 billion in 2021
• 59% of brands have a standalone budget for content marketing, and 75% of them intend to dedicate a budget to influencer marketing in 2021
• 90% of respondents to the marketing survey indicated they believe influencer marketing to be effective
• 56% of brands use the same influencers across different campaigns
• Businesses are making $5.20 for every $1 spent on influencer marketing

Websitebuilder.org also mentions:

• 86% of women prefer to use social media for purchasing advice
• 6 in 10 teenagers prefer advice from influencers over celebrities
• 57% of fashion and beauty companies use influencer marketing
• Brands will spend up to $15 billion on influencer marketing by 2022

Grin has published eight influencer marketing case studies dating from 2015 to 2017. Brands include Coca-Cola, Airbnb, and Mercedes Benz. Their conclusion?

“More than just a means of communication, social media platforms have evolved into marketplaces with the advent of influencer marketing. They will continue to evolve in the years to come. This strategy has already surpassed print advertising in its effectiveness, and with the way it’s going, it will soon surpass TV as well.

“These eight are just a tip of the iceberg when it comes to successful influencer marketing case studies. An increasing number of brands are using this marketing strategy because of its relevance, and its ability to speak directly to consumers.”

How to find social media influencers

There are companies that specialize in pairing influencers with advertisers. There are many companies that also offer advice on how you can do your own search for influencers. 

Influencer marketing services

These companies can locate and connect brands with influencers. They can also help shape your marketing campaign, so it works well on social media.

• Hire Influence
• Socially Powerful
• Imagency
• Marketing Maven

You may also want to check out this more complete list of 43 leading influencer marketing agencies from Influencer Marketing Hub.

DIY influencer searching

One way to find influencers is to search databases compiled by others.

• GroupHigh
• Cision
• TapInfluence
• Influencity

Or, there are platforms to help brands connect directly with influencers.

• AspireIQ
• Upfluence

There are other tools to help you do your own research across multiple platforms.

• Hootsuite
• Right Relevance Pro app
• Fourstarzz Influencer Recommendation Engine app
• BuzzStream
• BuzzSumo

Already know what platform you want to use?

If you’ve decided which social media platform or platforms you want to use, there are platform-specific guides and search tools available to help you locate social media influencers.

Instagram influencers

• Brandmentions
• Snoopreport
• InfluencerBay
• Neal Schaffer
• Neil Patel

YouTube influencers

• Social Media Examiner
• Influence Marketing Hub
• Mediakix

Facebook influencers

• Streamline Marketing
• Awario
• Get Kobe
• Influencer Marketing Hub

Tiktok influencers

• Grow Following
• Influencer Marketing Hub
• Popular Pays

Twitter influencers

• TweetBinder hashtag tracking tool
• Followerwonk
• Klear
• Twitonomy

Twitch influencers

• IZEA
• eAmbassador
• Influence Marketing News
• Mediakix

Need a little bit more information?

Grin.co provides advice that works across all platforms, including tips on how to initially approach influencers.

If you’d like a little more hand-holding, check out this WordStream blog and this one from Alexa.com.

Finally, if you are a new brand, be sure to read this blog from getcarro.com.

How much does it cost to use a social media influencer?

In general, there are four payment models:

• Flat rate/pay per post
• Free products/services
• Cost per engagement
• Cost per acquisition

According to Influencer Marketing Hub:

• 36% of brands pay their influencers with free product samples or discounts on more expensive items
• 32.4% paid cash
• 21% give discounts on products or services
• 10.5% give entries for giveaways

That same survey revealed statistics from a 2016 TapInfluence and Altimeter study. It showed that:

• 69.4% of influencers chose to be influencers so they could earn revenue
• 57.5% also claimed that they engaged as influencers to make an impact or effect change

If cash is the payment choice of an influencer, just how much money are we talking about? Forbes.com in a 2018 article noted industry experts suggest price points for Instagram influencers of $1,000 per 100,000 followers; YouTube, $100 per 1,000 views.

As influencer marketing continues to grow in importance, expect the dollar values to increase and more and more established influencers to insist on cash rather than products or services.

Influencer marketing has gone mainstream

According to Hootsuite, “More than two-thirds of North American retailers use some form of influencer marketing.”

“Partnering with an influencer is a number one marketing strategy for many brands,” reports singlegrain.com.

So, it’s time you add influencer marketing into your advertising mix, because the benefits of an influencer-brand partnership are many.

• Reaching a bigger, targeted audience
• Building trust for your brand among a younger demographic
• Growing your social following
• Increasing site traffic
• Getting more leads
• Driving sales

And who doesn’t want all of that!

Although Petra doesn’t employ influencers, we can certainly help our vendor partners in other ways. Visit petra.com to see what all we can do for you to help bring your product to market.