As a small business owner, you’ve probably heard the phrase “influencer marketing” quite a bit. This promotional tactic utilizes prominent individuals to deliver brand messaging to a wider audience. While influencer marketing can yield a substantial return on investment, a strategy must be implemented properly to see worthwhile results. Let’s take a look at the pros and cons of this popular strategy.
4 Reasons to Try Influencer Marketing
1. The Popularity of Influencer Marketing Is On the Rise
Over a one-year period, Google saw a 325 percent increase in searches for “influencer marketing.” Additionally, 37 percent of marketers are now dedicating a portion of their budget to influencer marketing tactics. This strategy is growing in popularity, and for good reason: when implemented correctly, the results can be astonishing.
For example, watchmaking brand Daniel Wellington opted out of traditional marketing techniques and instead tapped influencers to promote its products. As a result, these efforts yielded 1.3 million Instagram posts using their dedicated hashtag and 3.2 million followers on the photo-sharing channel.
2. Your Content Isn’t Generating Results
Your team is working tirelessly to execute a successful content marketing strategy based on data and audience analysis. However, engagement with your content is minimal, and you aren’t generating leads as you would hope. Influencer marketing also provides the megaphone your brand desperately needs to amplify its messaging.
3. You Want to Maximize a Limited Marketing Budget
For your organization, co-creating content with influencers minimizes marketing costs. The time and expense for developing fresh content are high, but influencers can assist with these tasks and take the burden off of your team.
4. Traditional Advertising No Longer Works
Research shows that 71 percent of consumers are more likely to make a purchase based on a social media reference. Today, users respond to influencer marketing content more so than they do traditional forms of advertising. Influencers already have a vast network of customers eager to jump on the bandwagon. Tap into these resources to develop a successful influencer marketing campaign.
Disadvantages of Influencer Marketing
1. It’s Time-Consuming
Creating, developing and executing an influencer marketing strategy is a lengthy process. Once you’ve launched one, it takes weeks for the project to ramp up and gain leverage. Not to mention, results are not immediate, and patience is required to achieve success.
2. It Has High Communication Requirements
One employee or manager needs to be in regular — if not constant — contact with influencers to ensure they adhere to marketing guidelines and meet their deadlines. In fact, some experts recommend training or hiring a staff member as an influencer relations specialist to manage this enormous task.
3. Advanced Tracking Tools Are Required
You’re not just tracking your metrics and traffic, but also those of your influencers. You also have to measure traffic to their site and blog, along with engagement on their social channels. These advanced tracking requirements demand an analytics expert who can operate and manage the tools necessary for these duties. This kind of expert knowledge does not come cheap, but accurate measurement is always worth the investment.
4. People May Not Trust Professional Influencers
Certain individuals have discovered how lucrative it can be to work as an influencer. These professionals sell their brand to businesses, promising to deliver outstanding results. However, users can quickly tell if one of the online influencers they follow has become a shill for companies rather than a provider of valuable content. As soon as people realize this, they unfollow these influencers and no longer trust any of their recommendations.
Is Influencer Marketing Right for Your Organization?
The best way to determine whether an influencer marketing campaign is right for your business is to ask yourself the following questions:
1. Do your products/services have mass appeal?
2. Are there any similar products/services currently available?
3. Are there influencers for your target audience?
4. Are your product and your site well-designed?
5. Do you have an established social media presence?
Depending on how you answered these questions, you might need to do some additional work before launching an influencer marketing strategy. For instance, if your site needs to be updated and your social media presence is minimal, you must address those tasks before developing your campaign.
Need financing to cover the costs of your influencer marketing campaign? Connect with Strategic Funding today to learn about your funding options.