BYOMSPM

After a brief hiatus from BYOMSPM to focus on a work training conference, I’m back now to finish out the semester with a few more posts. This article will cover the basics of influencer marketing.

Grade I gave myself for this assignment: 90/100

Basics of Influencer Marketing

What is influencer marketing?

Influencer marketing is a relationship between a brand and a popular social media user in which the user (“influencer”) publicly promotes the brand or their products. This is distinct from celebrity endorsements because influencers generally have more reputability with the brand/product, and the companies leverage the influencers’ existing audience to more effectively reach their target market. Influencers can get paid a flat rate or a commission for posts, with celebrities sometimes earning up to 6 figures.

This type of marketing relies on the authenticity of influencer content, which aims to communicate to consumers their genuine preference for the brand or product. While originally the scope of influencer marketing only included the few most popular users, there has been a rise in micro- or nano-influencers, or influencers with smaller followings. According to McKinsey, “in 2023, the influencer marketing economy was valued at $21.1 billion” (McKinsey).

What are the key benefits of influencer marketing?

Because influencers generally have a specific or niche following, brands can more effectively select particular influencers in order to reach their target audience. Additionally, followers generally already have a sense of trust and respect towards influencers they follow; when those influencers promote a brand or product, their followers are more inclined to also develop an affinity towards the brand/product.

What are the risks with influencer marketing?

One major risk of influencer marketing for companies is that influencers generally have independent control over the exact content that is posted. While the partnering company will provide guidance about the brand messaging and advertising strategy, influencers generally have ultimate control over the video, photo, or text that is posted. This means that companies don’t have complete control over the exact brand messaging that is communicated to consumers, which can be uncomfortable in comparison to their experience having complete control over messaging in more traditional marketing.

Another risk is that it can be difficult for ads for really large companies to feel authentic and fully personable (aka the whole point of influencer marketing) because it can be obvious to consumers that the content is sponsored.

Is Influencer Marketing Effective?

According to an article in HBR, there are a few variables that influence the effectiveness of influencer marketing. Here are some of them:

• Influencers with more followers = generally a better ROI for companies
• Influencers with a medium frequency of posting = generally a better ROI for companies (influencers who post too rarely haven’t built enough trust with followers, and influencers who post too frequently clutter their followers’ feeds and are viewed more negatively)
• Influencers who post content created by themselves = generally a better ROI for companies

Are there other variables you would want to look at, besides the above and the others listed in the article?

Yes:

• What is the average amount of time that a follower has followed this influencer?
• What percentage of the influencers’ posts are sponsored?
• Did the influencer ever show or use the brand/product before entering into the sponsored relationship?
• How many comparable influencers are there on the given platform (niche, follower count)

Thanks for reading.

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Works Cited

Leung, Fine, Zhang, Jonathan, Gu, Flora, Li, Yiwei, and Palmatier, Robert. “Does Influencer Marketing Really Pay Off?” 24 November 2022. https://hbr.org/2022/11/does-influencer-marketing-really-pay-off.

Matthew, Joel. “Understanding Influencer Marketing and Why It’s So Effective.” 30 July 2018. https://www.forbes.com/sites/theyec/2018/07/30/understanding-influencer-marketing-and-why-it-is-so-effective/?sh=4f7490ae71a9.

“What is Influencer Marketing.” McKinsey & Company. 10 April 2023. https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-influencer-marketing.