The Impact Of Influencer Marketing On Businesses 2021

Influencer marketing has been around for decades, but has only recently received more attention among marketers and businesses. With more and more companies integrating it into their marketing plans, the best minds are working hard to discover what makes this type of marketing special and unique.

Influencers are here to stay but the business model of influencer marketing has changed a lot in the past few years, and it's likely to be quite different in the future.

Brands are desperately spending on influencers, but there's no guarantee that the next craze won't kill this one.

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Influencer marketing has been around for decades, but has only recently received more attention among marketers and businesses. With more and more companies integrating it into their marketing plans, the best minds are working hard to discover what makes this type of marketing special and unique.In short, influencer marketing is a way to promote your products or services by working with people who are popular or can make you popular. But who are these people? Are they all big shots? Or celebrities? Or bloggers? Hold your horses till we uncover every inch of the information before your brain explodes!Most of the confusion in influencer marketing comes from the fact that people often use it to describe different things at once. The first thing is community management, which is using social-media influencers to create buzz for a product or service, or is there more to it? Although there is much chaos when it comes to determining what exactly influencer marketing is, this article will cut through some of the noise and clarify things for you.Stay tuned till the end of the blog to unleash some amazing potential of influencer marketing on Instagram and how it's never too late to leverage it for your business! The article will also cover some best practices of influencer marketing based on real life examples.But first, let’s get the basics right!

What is Influencer Marketing?

Influencer marketing is a powerful way to create an authentic, engaging experience that gets people excited about your products. It is a space for celebrities, renowned personalities and bloggers to utilize instagram to endorse brands that they can vouch for or simply love. It is a marketing tactic wherein famous Instagram personalities with a huge follower base are compensated for helping brands. It can be to either promote their products and services or  recommend the brand’s products and services to boost sales. Many influencers also offer a special discount or coupon code custom-tailored to their name. This discount is available when one of their followers uses it, which instantly decreases the cost of the original product. But this applies only to the first few people who choose to apply the promo code. This creates a pressure on the audience to use it as soon as possible and tricks them to buy the product which ultimately boosts brand's sales. More than half of consumers trust recommendations from people they know, such as influencers, as the most credible source of product information. It’s a great tactic to create FOMO (fear of missing out) within the audience and take advantage of it.

How To Determine What Kind Of Influencers To Hire For Your Next Marketing Campaign?

It all boils down to, the brand needs your followers and you need theirs! To get the most out of your social media influencer marketing campaign, you should work with experienced social media influencers who share your brand values. But it does not mean you need to spend a bomb on hiring people. Ironically, even a small amount of money can have a gigantic effect on your campaign if you know how to use it well. It's all a strategic approach that gets the work done and not entirely money. It's possible to fetch far more positive results from nano and micro influencers as compared to high ticket influencers. But does that work at all times? Probably not. Influencer marketing is one of the best ways to get your product in front of the right audience. So the bottom line, it’s significant for you to figure out which influencers are right for your brand.Although it's up for debate,many people believe that influencer marketing is divided into 3 subsets: micro influencers, macro influencers, and mega influencers. This is based on which segments of the market the firm is interested in addressing with respect to the quantum of target audience they would like to address.

1. Micro InfluencersMicro influencers are the ones with an audience base of about 1,000 to 100,000 followers. While these influencers have less followers, they make up for it by having a more interactive relationship with their fanbase.Micro influencers build their authority by creating a valuable expertise on a subject. They are most effective when they are aware about a topic inside out that is also close to their expertise. They recommend a product because they can personally connect with it which lets them position as a true cheerleader of the brand. 

They often speak about a particular topic in their niche, and they also tend to be more personable than other influencers. Even though they have a smaller, more specific audience than mainstream influencers, they're much easier to reach and have the potential to make your products and services market with authenticity. When to approach them? The first part of your campaign needs to focus on gaining awareness and getting people to take notice of your brand. When you're ready to move from a broad awareness campaign to a more targeted one, start looking for more effective methods of communication/promotion with the help of such influencers. This will help your business to tick some scales and start generating leads and sales, creating a multi-channel campaign to ensure the best ROI. 2. Macro InfluencersSome people can promote your products incredibly well on their own. They're called macro influencers and they typically have an Instagram audience of between 100,000 to 1 million people. Influencers like them possess a large following with immense power that can bring heavy chunks of revenue for your business. 

Let's say you have a podcast. In order to get people to listen to it, you have to have a large audience. You can do that by getting listeners from other podcasts or from social media stars, etc. Similarly, if you're a blogger, it's worth seeing if any of your posts have been linked to by high-profile websites. That would be a sign that your content is sufficiently interesting. That's the power of influencer marketing

When to approach them?If you're looking to reach a crowd that's interested in a niche field or topic , or when you're looking for an expansive, general audience who is interested in the topic at large then you're definitely in the right place with macro influencers. 3. Mega InfluencersInfluencers with over a million and more followers are labeled "mega influencers". They have a global following base and mostly (but not always) promote high end products. These influencers are in high demand for paid sponsored posts, digital media ads, product placements, brand ambassadorships, among others. 

For example, take the Kardashians. Kylie, Kim and Kendall have over or even beyond 50 million followers who mostly promote brands that are in the luxury segment. Similarly, there are other big shot mega influencers who charge the sky for getting on-board with a brand to represent them in their feeds.

Public awareness campaigns are used to get your service or product in front of as many people as possible. Mega influencers play a key role in making that happen in a short span of time at a greater momentum. 

The problem however with this kind of instagram marketing campaign is that influencers are trying to fit every campaign with a streamline strategy and approach rather than tailoring it to the desires of the audience. This may work like a hit and trial method which can either become a huge success or not work planned. 

Things To Keep In Mind Before Reaching Out To Instagram Influencers

One of the challenges with influencer marketing is that you only get to share your message once. This makes it important to choose influencers who will be aligned with your target customers. So you have to be absolutely sure about the path you adopt. Below are a few pointers to help you out:-1. Research, Research & Research!

A company’s number-one goal is to reach new target customers through influencer marketing. This makes sense, since an influencer campaign extends your reach to that person’s followers. You want to reach new customers, so it's important to understand what sort of people they are. For example, do they live in a big city? Do they have kids, and if so, how many?2. Play By The Rules

It’s important to understand the rules of influencer marketing before you dive into it. One such example is- Brands and influencers must indicate when a social media post is sponsored. However, not all influencers disclose their relationships to brands. Some even do so in a way that is effectively hidden or incomprehensible to the reader. That by all means is unethical! And why it shouldn't be! Businesses spend millions of dollars to get their name out there and they deserve their names to be called out on their posts.3. Hunt, Trust, Shortlist And Get-Onboard With The BestTake the time to research influencers, because if your product or business isn't up to snuff, you're doomed before you even begin. When choosing a potential influencer to work with, it's important to think about whether or not your audience will respect and trust their opinions. So be very careful before you get on-board with an influencer who also acts like a brand ambassador for your product at that very moment. 4. Next Up, Reach Out To Them!When looking to work with influencers, the best way to reach out is directly via private messaging them on the same social media platform. They won't have their phone numbers hovering around their instagram handles, obviously! However, emails are something you might find on their profiles. But for more established influencers, you might have to hit them with cold emails, get your meeting scheduled with their managers and get an appointment schedule for a detailed discussion.

What Does The Future Behold For Instagram Influencer Marketing?

Influencers are here to stay but the business model of influencer marketing has changed a lot in the past few years, and it's likely to be quite different in the future. Brands are desperately spending on influencers, but there's no guarantee that the next craze won't kill this one. So why not hop into the trend before it's too late!