How Influencer Marketing is Changing the Game
By Caroline Denholm
Brands are being forced to modify the way they can appeal to their target audiences. When you think of marketing, you probably think of mailing lists, commercials, and printed advertisements. However, the way brands are marketing themselves is changing significantly with the exponential rise and success of various social media apps.
What is Influencer Marketing?
Influencer marketing is a branch of social media promotion that entails the endorsement and strategic product placement by individuals or entities recognized for their perceived expertise or substantial social influence within a specific domain. So, for example, Alix Earle is a popular TikToker with 6.4 million followers. She gained popularity by making “Get Ready With Me” videos and showing the different makeup products she was using. The products she was using in her videos began to sell out in stores, despite the fact she never specifically told her audience that they needed the products. Some examples of products that gained massive traction due to her videos are white eyeliner, and Tarte Shape Tape concealer.
When brands started to recognize the massive influence she had on her audience, they began to send her their products for her to review on her account, and she would of course get paid for doing so.
Alix is not the only influencer who is getting paid to promote products on social media. Countless others have made a career out of influencer marketing
Influencers on TikTok have also gone viral for having Amazon storefronts which is an Amazon page where fans can purchase the products directly from Amazon. Whenever someone purchases something from the storefront, the influencer gets a commission. Darcy Mcqueeny is a prime example of someone who is constantly promoting her storefront, along with telling her audience which products they NEED.
Alix Earle, popular Tiktoker with 6.4 million followers.
The Tiers of Influencers
Since brands are paying influencers lots of money to review their product, they can afford to be picky with the tier of influencers they choose to work with.
Nano influencer: 1,000 - 10,000 followers
Micro influencer: 10,000 - 50,000 followers
Midtier influencer : 50,000 - 500,000
Macro influencer: 500,000 - 1,000,000 followers
Mega influencers: More than 1 million followers
While it may seem silly to divide influencers into groups like this, the amount of followers one has does impact the overall success of the product they are promoting. A study done by the University of Maryland concluded that smaller influencers are more able to have one-on-one interactions with fans, making them able to sell products more easily than mega influencers. The study emphasized the fact that mega influencers do not have a personal touch with their followers, and that lowers their conversion rate when promoting products.
“Smaller influencers with fewer followers are better at closing sales and have higher conversion rates – more than double the rate of mega influencers.”
When Influencer Marketing Goes South
Charli Damelio, a 19-year-old TikToker, first grew to fame in 2019 by making lighthearted dancing videos. Throughout the pandemic, her fanbase adored her and felt like she was a relatable teenage girl. The sponsorships she was doing during this time were consistent with her brand, such as doing a Dunkin’ collaboration when she constantly posted about how much she loved their coffee. However as time went on, she stopped making authentic content. It quickly became brand deal after brand deal, which caused her audience to feel less connected to her.
While the brands she is promoting are still getting publicity, customers are less likely to purchase a product if they do not believe the person promoting it truly likes and uses it.
If Charli stayed true to her brand and only promoted products that she truly loved, it would show in her videos. However, this gradual decline in the content her fans originally followed her for has led to a steady decline in her popularity.
The Future of Influencer Marketing
Moving forward, influencer marketing will be much more data-driven than it is now, as data makes it easier for brands to discover which influencers have the biggest outreach. Authenticity is also something that consumers are starting to truly care about, so it is predicted that influencers will begin to only promote products they like, instead of faking it for the camera and the money.
Influencer marketing is overall an ever-evolving and rapidly growing industry, and it is important for brands to recognize what works best for them and the influencers they are paying to promote their product.
“Influencer marketing is here to stay and it is going to become another established form in the marketing mix as a way to reach out to consumers. The amount of marketing spending happening on social media, including influencer marketing, is going to go up. This topic is going to become more important.”