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Influencer marketing – what is it, how does it work and why is it profitable?

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Influencer marketing – what is it, how does it work and why is it profitable?

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Want to reach a wide audience of potential customers? Consider influencer marketing, which will help you increase sales and achieve your business goals. There are many factors that influence customers' purchasing decisions. Nearly 90% of consumers admit to being influenced by recommendations—especially those from influential people (though not celebrities). Influencer marketing leverages this, generating significant profits for retailers.

What is influencer marketing?

Influencers marketing This is one of the most popular online marketing strategies. Its essence is to leverage the influence of popular online users on the decisions made by others. Repeated studies clearly show that recommendations and information received from an influencer are one of the most important sources of purchasing impulses.

Who are influencers?

Influencers are people who run blogs and vlogs, Instagram accounts, or other similar platforms—channels that boast high viewership. They are often experts in their field, sharing knowledge about specific products, and so on. Although they share much in common with so-called brand ambassadors, they belong to the group of opinion leaders. What distinguishes influencers from other online users is the relatively high level of trust they enjoy from their audiences. This stems from a simple fact: internet users treat them as equals. They are perceived as completely objective individuals whose goal is to present the actual features of a given product, not to maximize their own profits. It's worth emphasizing that influencers are not celebrities. They are "ordinary" people who—thanks to regularly posting valuable content—have managed to build a large following. Of course, their credibility is directly proportional to the quality of the content they share. If viewers sense that the posts lean too heavily toward simple sponsorship, they may become discouraged or even turn away from the influencer. Moreover, research has already emerged indicating that the larger a person's audience, the less engaged they are and the less likely they are to replicate their purchasing decisions. It turned out that, at least in some cases, organizing a campaign with a hundred micro or small influencers yielded better results than collaborating with two relatively large influencers. What's even more intriguing is that in the former case, it was also... cheaper.

Why is it worth using influencer marketing?

Influencer marketing is enjoying significant popularity, particularly due to the results it achieves. According to a study by Influencer Marketing Hub, 84% of marketers believe that influencer marketing activities are effective. Collaborating with influencers offers numerous benefits. This is because the activities conducted by influential users are characterized by the following characteristics:
  • trust – the influencer is treated as an objective person who does not encourage purchases,
  • authenticity – the influencer tests a given product, paying attention to
  • important issues – the same ones that an ordinary user pays attention to,
  • multi-channel – influencers reach their audiences through various channels, collaborating with the brand on many levels simultaneously,
  • involvement – influencers care about the quality of their content, actively participate in discussions, respond to comments, etc.
It's worth remembering, however, that there are many variables that determine the effectiveness of a given influencer campaign. It's important to know your goals, tailor your product to the right audience, and establish realistic metrics.

So why is it worth taking advantage of the potential of influencer marketing?

The ability to precisely reach the target group

The effectiveness of marketing efforts depends largely on reaching the right audience. Influencers facilitate this because their blogs and vlogs attract followers from people interested in specific topics. If your target audience is pregnant women, they can easily be found on a channel dedicated to parenting. If you want to reach photography enthusiasts, collaborate with a photography expert.

Attractive cost of cooperation

Influencer marketing often proves to be much cheaper than other forms of brand promotion. It's impossible to pinpoint a single price, as everything is individual. However, there are several factors that determine the price. These include reach, channel of collaboration, scope of activities, and industry. The influencer's recognition is also important. Typically, pricing takes the form of a fixed fee. However, influencers sometimes operate through affiliate programs or barter exchanges. This depends on the company's internal policies and the influencer themselves.

Greater "breakthrough" power

The widespread use of the internet has led to significant changes in the brand-consumer relationship. While many years ago, all advertising messages were one-sided, much has changed in this regard. People want to know who's behind a given message, they want to interact, and so on. Therefore, influencer marketing has a much greater impact and impact than traditional marketing messages.

Influencer marketing and SEO

Influencer marketing is also worth exploring because of its impact on SEO. Collaborating with influencers not only positively impacts brand image and contributes to product promotion. A good strategy allows for significantly better rankings in search results. Why? Building a strong link profile Collaborating with influencers allows you to acquire high-quality links, for example, to an online store. These links originate from blogs and other external websites that enjoy a high reputation and popularity among internet users. Access to unique content Influencers create high-quality content, where they present a specific product or brand. This is a welcome activity from Google's perspective, so access to unique texts can increase your ranking in search results. Possibility of increasing website traffic There are quite a few opinions on whether website traffic is a ranking factor. Regardless, influencers help generate traffic by recommending specific products and posting links to the website. Interested individuals will click through and visit the brand's website, etc. Remember that influencer marketing can be just one of many forms of strategy. By working on several levels simultaneously, you increase your chances of achieving your business goals. Furthermore, you also have the opportunity to simply test what will provide the best cost-to-revenue ratio for your business.
Summary

The above article covers the following topics:

  • What is influencer marketing?
  • What benefits can you gain from using influencer marketing for advertising?
  • Can influencer marketing support the website positioning process?