A world of possibilites – 10 reasons why influencer marketing is the next big thing

 

Humans are by nature social animals that love to connect with others.

Humans are social animals

 

 

 

 

 

 

 

 

 

 

 
Globalization, digitalization and individualization have risen and new technologies have enabled humans to establish relationships with people all over the world. The empowerment of social media is another important development that is responsible for community building and niche networks. There are many leaders of collectives that have a strong voice as well as the capacity to make movement happen. Those personalities have a massive reach on Youtube, Instagram, Snapchat and Co. Social media influencer receive trust from their audience, which values the influencer´s opinion. In a world, where humans, concerning decision making,  value the opinion of their fellow human beings the most and want to discuss experiences about services and products, we may feel how effective and powerful social media influencer marketing can be, when connecting the right brand to the right influencer. In short: Social media influencer marketing is a highly effective tool to adress the target audience and to encourage engagement. Brands should take this movement into consideration as they can connect with consumers more directly in an organic way and at a scale. As a result, the message is strenghtened and  spreaded to the right audience which is ready to get seduced by the brand.

 

1. The power of influencer marketing is outstanding

Word-of-mouth marketing

 

 

 

 

 

 

 

 

 

 

Influencer marketing has three times the ROI of traditional marketing with 62 percent lower cost. This has shown a recent report of RhythmOne and a further examination, the Nielsen study has found out, that 84% of consumers say that recommendations from friends and family are the most influential and trustworthy source.

Influencer marketing is tightly connected with that finding, as it is a type of word-of-mouth recommendation that drives sales in a highly efffective way.

Additionally, a McKinsey study confirms that „marketing-induced consumer-to-consumer word of mouth generates more than twice the sales of paid advertising.“ On top of that, the retention rate of those that were acquired by word-of-mouth is 37 percent higher.

The studies underline the secret power of influencer marketing. Brands may leverage the power of word-of-mouth at scale through well acknowledged personalities that consumers already follow and whose opinion they value. Influencers may tell genuine and authentic stories about the brand. They have a trusted voice, in which their audience is interested. Consumers then get the chance to engage with the brand. Simply absorbing branded content is passé. Nowadays, not the brand tells what it is about, rather the consumer explains and underlines the brands benefits.

 

2. What consumers want – A social, trustworthy & authentic brand

Authentic brands

 

 

 

 

 

 

 

 

 

 

The world has evolved and social media is the new star. Companies have started increasing their social media spendings as social media has become an important requirement for brands to survive in today´s consumer society.

In the past, consumers have been flooded with massive advertising. Based on ads, they made their purchasing decisions. Today, consumers do not trust in traditional advertising. They rather aim to connect to the brand on an emotional level and establish a relationship. A brand that is attractive for consumers, leads an authentic conversation with them as well as entertains and informs its audience. This indicates the importance of influencers, as they lead organic conversations and may convince their followers of a specific brand.

 

3.Influencer put trends  

Social media is the rising star

A common phenomenon: Popular Instagram blogger are posting a photo of a distinct product which then reaches the tipping point and becomes a must-have article. As influencers serve as a role-model for many, they put trends and have a great impact on which brand will conquer the market next.

 

4. The new buzzword!  

Google Trends

 

 

 

 

 

 

 

 

 

 

Social influencer marketing is the new buzzword. From Forbes to Jay Baer, an acknowledged American marketing consultant and speaker: The topic is on everyone´s lips. Even Google Trends underlines the popularity of influencer marketing and has classified this keyword as „breakout“ what means that the topic experiences an outstanding growth and faces the peak of its popularity with a search interest of 100 percent.

 

5. Influencer marketing – An attractive arbitrage

Facebook has been an arbitrage

 

 

 

 

 

 

 

 

 

 

Influencer marketing is highly efficient because the effort is small and the profit big. However, people just start entering this marketing niche. That´s why influencer marketing is characterised as being an arbitrage. Facebook ads are a good exmaple of a now closed arbitrage. When Facebook launched its ad network, the company did not face much demand. Early adopters first entered this field of Facebook ads and made high profits and a record on ROI. As people began demanding and competing more and more for ad-space, the prices went up.

The arbitrage was closed. Today, influencer marketing is still an arbitrage. The result: Paying for an influencer promotion is below its real value concerning the ROI and therefore highly attractive for marketers.

 

6. Take on the chance

Take on the chance

 

 

 

 

 

 

 

 

 

 

Arbitrages are not lasting forever as people steadily learn about the benefits of a specific arbitrage. The demand is rising and so is the price. The result: The arbitrages closes.

When NeoReach – social media influencer marketing platform – started in late 2013, the rate for a branded Vine with three million views was $400. Nowadays, marketers pay $10,000 to $15,000. Prices are still increasing. The same applies for Instagram: In earlier days, bloggers posted a product photo for free as they already could keep the article. Today, marketers pay $1,000 to $100,000 for a post, depending on the followers number and engagement rate.

 

7. An annoying other advertise

Too many advertising

 

 

 

 

 

 

 

 

 

 

Day by day, we are exposed to 5,000 advertisements (number increasing). People are exposed to too many ads. They cannot absorb all and the brain starts filtering. This phenomenon is called „Banner Blindness“. Infolinks, a digital advertising platform found out, that only 14 percent of the respondents could remember the last ad they saw. This indicates the inefficiency of traditional advertising.

The popularity of AdBlock, Netflix and Spotify Premium thereby is not surprising as they exclude ads and enable a more convenient media experience.

 

8. A great consumer experienceA great consumer experience

 

 

 

 

 

 

 

 

 

 

Influencer marketing is related to native advertising. It places brands and products into organic content what creates a more pleasurable experience for consumers. A more powerful marketing solution is the result. Studies have shown that the purchase intent with native ads is 53 percent higher and 70 percent of internet users are interested in learning more about the product through content.

 

9. SEO – Super efficient output

SEO - Super efficient output

 

 

 

 

 

 

 

 

 

 

It´s a simple SEO rule which helps your search ranking: The more you are mentioned on social media, the more popular and relevant you´ll be on Google.

 

10. Digital world – Track your data and target better

Valuable Data

 

 

 

 

 

 

 

 

 

 

Besides demographic features, marketers can track and analyze every website visit, social like and posted content. Oceans of data are the result. They give marketers an important advantage and a valuable insight in their target group and advertising performance.

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