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Tastemakers Collaborating with Brands: Snowballing Effect of Influencer Marketing

Influencers are redefining modern-day brand endorsements. Influencers closely resemble celebrities, but they hold a large fan base or audience in a targeted niche. They are the tastemakers in today’s dynamic business environment as we can see a snowballing effect of influencer marketing on the audience.

In this epoch wherein followers or fans interested in a particular niche put tremendous credence on influencers, influencer marketing works best to gain the trust of your potential customers by carefully endorsing your brand with the people who have a huge following on social platforms. Foundationally, Influencer marketing is more appealing than social media marketing. For instance, you are a gamer and a big fan of PewDiePie, who regularly keeps a check on his gaming commentaries. Meanwhile, PewDiePie, the famous Youtuber, collaborates with Steel Series to espouse its gaming headsets. Are you more likely to get enticed to try the headsets once?  

You know the answer! 

That is what Influencer marketing is all about—collaborating with the right people, with the followers in your targeted niche market to endorse your brand. Remember, the followers care about the influencers and not about the brand. Unlike viral celebrities, Influencers are entrepreneurs themselves. They have built a brand from scratch, and they know how to get people hooked. 

How did it all start? 

A well-grounded paradox in marketing history suggests, “If people loved the person promoting the product, they love the product too.” 

The early trials or experimentations in the influencer marketing industry started in the 1930s when Pepsi used the Santa Claus image to promote the beverage. From then on, various marketing campaigns were run, and the results were astounding. Take an example of the “Marlboro Man” campaign in the 1950s to associate cigarettes with the image of a macho man. 

In the last decade, we have seen a surge in influencer-led endorsements because of the emergence of social media. An early example would be the French horror filmmakers partnering with PieDiePie to pitch catacombs to their subscribers. 

Suppose you are a brand manufacturing beauty products. Would you go for television ads, banners, and all the conventional marketing practices to cultivate customers, or instead, you would simply pitch your product to a fashion influencer with more than 15k followers? 

The latter seems like a cost-efficient option. Additionally, promoting the product through ads and banners wherein you are not assured of the size of the audience, who are attracted towards the brand can be a risky bet than pitching it to the people of the particular niche with assured Earned media value (EMV). 

According to the Influencer Marketing hub report, every $1 spent on influencer marketing yields a return or Earned Media value of $5.78. In some cases, the EMV is as high as $18 for every one dollar spent. 

Delving Into The Future Of Influencer Marketing

According to a report published by Influencer Marketing hub, the industry is worth $13.8 billion in 2021, a surge of almost 13x since 2016. The advent of Instagram, TikTok, Youtube has specifically raised the bar for brands and influencers both. TikTok’s engagement rate is exceptionally high as compared to Instagram or Youtube, according to Upfluence.

Influencer Marketing Trends 2021

After the outbreak of the pandemic in 2019, reports estimated a cut in influencer marketing campaigns. The campaigns have recorded an upward trajectory since 2018, from 590 campaigns in Quarter 1 of 2018 to 2110 campaigns in Quarter 4 of 2019. 

The influencer marketing industry has unmasked various other sub-sectors needed to keep the wheel churning. The growth of campaign management firms is one example of the snowballing effect. A report suggests that 1360 influencer marketing-focused agencies entered the market in the last five years. 

In 2017 a research done by Influence.co highlighted influencer payments of Instagram:-

  1. Overall average price per post $271
  2. The average price for micro-influencers with less than 2k followers was $83 per post.
  3. The average price for macro-influencers with more than 100,000 followers was $763 per post.

Though the industry of Influencer marketing is reaching a saturation point, its growth is still inevitable. 

How To Select Influencers For Your Brand?

The success of an influencer marketing campaign depends on the type of Influencer you choose or what metrics you use to select the influencer. 

Selecting influencers based on the number of followers will not be a wise option. The metrics that should be considered to narrow down the search are:-

  1. Engagement rate
  2. Audience 
  3. Budget  
Engagement rate is one of the most important criteria to consider as it shows the level of interaction between the influencer and followers. Various tools can also be used to identify potential influencers for your brand, like Twitter Analytics, Upfluence, BuzzSumo, among others.

The Creator Economy Tools By CallXP

We are a centralized platform for influencers looking to generate a stable source of income. From accepting bookings, secure payments to managing everything with a deep-dive analytics report- we keep it simple for you. Within a few clicks, your CallXP profile will be up and running. So, let’s get the dice rolling!