Building brand awareness is a vital part of marketing products and services, for most, influencers have been part of the business model. With the increasing number of influencers on social media, finding someone to represent a brand has become easier; it’s only a matter of getting the right one. However, influencer marketing did not just bloom overnight. In fact, it has been around since the pre-digital era and has evolved into the version we know today.
Evolution of influencers
Back then, businesses would partner with influential figures who could bring credibility to their product. One example is the English fine china maker, Wedgwood, which made a set for King George III’s wife. Making such a set for a member of the royal family meant that there was a stamp of royal approval for the company. With the advent of radio and visual ads, companies became more creative. A popular example is Coca-Cola and its vision of Santa holding a Coke bottle, which has now become a prevailing holiday tradition.
Over the past few years, influencer marketing has skyrocketed in value and is expected to reach USD 33 billion. Of course, brands continue to use celebrities and popular artists to be their brand ambassadors to this day. However, with the availability and reach of the internet, people have become more vocal about the brands they use. This gave off a feel of authenticity and relatability for both the brand and the consumer. While one could question that authenticity when social media influencers partner with brands, it still has a great impact, especially for smaller businesses. After all, online influencers generally have a more targeted audience and more contact with their viewers, not to mention that partnering with them means less cost for the business than partnering with a big celebrity.
Brands and influencers
These days, influencers and celebrities overlap, thanks to their online presence. Now, influencers can range from a normal individual with a niche following to megastars who have a huge fan base. For businesses, they only need to choose what type of influencer is right for their brand: nano, micro, or nano influencers. As suggested by their naming convention, these types refer to the size of their followers. Nano-influencers have less than 1,000. Micro influencers are those with 1,000 to 100,000 followers. An influencer with over 100,000 followers is considered a macro influencer, while mega influencers have more than a million.
Initially, one might want to go for a mega influencer, meaning a bigger budget is needed. However, more than the costs, one study suggests that more isn’t always better. Maximilian Beichert and colleagues from Bocconi University found that influencers with fewer than 10,000 followers generate significantly higher returns compared to those with larger followings.
Authenticity above all
Generally speaking, consumers seek value and authenticity. A customer is most likely to buy a product or avail of a service if they are marketed by someone they trust. It is also important that the influencer is credible and knowledgeable about the product. As consumers, we must be diligent in choosing what we choose to spend our money on. Just because celebrities and influencers are promoting it doesn’t mean it’s all good. Paid sponsorships can sometimes blur the lines between authentic patronage and staged promotion.
Photo credit: The feature image is symbolic and has been done by Angela Franklin. The infographic has been done by Statista.
Sources: Phyllo / Peter Suciu (Forbes) / Quinn Schwartz (Grin) / Statista / Michelle Hawley and Kaya Ismail (CMSWire) / Harvard Business Review
