The advertising and marketing sectors are changing rapidly. As people use new technologies and spend their time on different platforms, it’s not surprising that many advertisers reallocate funds from traditional and TV ads to digital marketing. In recent years, influencer marketing has become one of the major subcategories of digital marketing. In the past, celebrities and influencers were used to promote the products and services of major brands. However, nowadays, even small companies and retailers can boost their eCommerce marketing by using nano and micro-influencers. In this post, we’ll share more about the characteristics of influencer marketing and how business owners can use it to boost sales. If you’re interested in other innovative sales drivers, check out our post on eCommerce trends.
Key takeaway: Influencer marketing is part of the digital marketing mix. It can be used by both big international brands and small local businesses. Working with influencers can help a company increase its sales and boost brand recognition.
What Is an Influencer
Influencers are people who have a large following on social media or other platforms. This means they can affect the opinion or influence their followers into certain behaviors. Most influencers focus on a specific niche. Examples include lifestyle and fashion influencers, gaming and pop-culture hobbyists, and beverage or food enthusiasts. There are also micro and nano-influencers that create content on very specific topics such as specialty coffee, a specific game, memes, or other niche topics. The reason why influencers have become so popular is that they offer a more trustworthy form of entertainment, and they allow followers to receive content from a specific niche market. Users are more likely to trust a product review from an influencer rather than the product description on the company’s website.
Types of Influencers
There are four main categories of influencers. They are based on the number of followers these individuals have on different platforms.
- Nano. Although they have less than ten thousand followers, they are a budget-friendly option for businesses that want to benefit from influencer marketing. The main advantage of using nano-influencers as part of your eCommerce marketing strategy is that their followers are very loyal.
- Micro. With less than a hundred thousand followers, micro-influencers can be used by both small and large brands. They are a versatile influencer marketing option for both sales and brand awareness campaigns.
- Macro. These are usually industry leaders that have a nationwide or global audience reach. Macro-influencers have hundreds of thousands of followers, but they have lower engagement rates compared to nano and micro-influencers.
- Mega. These are celebrities, leaders, and well-known personalities. They have more than one million followers and are primarily used in brand awareness campaigns.
What Is Influencer Marketing
Influencer marketing is the strategy to use content generated by influencers (and their followers) to promote products, services, or the brand as a whole. This branch of marketing can include one-off collaborations such as product unboxing and review or long-term partnerships such as having brand ambassadors.
Influencer marketing is a fairly new concept. In the past, celebrities and other well-known individuals who can influence purchase decisions were used in scripted ads or promotional materials. However, influencer marketing relies primarily on content created by the influencer itself. This builds better credibility, leads to higher engagement, and creates trust. That’s why a company that wants to bridge the gap between consumers and the brand can use influencers in its business’s marketing efforts.
How to Use Influencers in Business
There are various ways to benefit from influencer marketing. The most optimal choice depends a lot on the type of products sold, the target audience, and the budget. Here are some influencer marketing campaign types to consider.
- Free products in exchange for influencer-generated content. Brands can give free products to influencers who then need to post images or videos of these items. Examples of such products can include jewelry, watches, or apparel. This strategy works best if done with a large number of nano and micro-influencers. Mega and macro-influencers are likely to expect payment in addition to the free product.
- Product unboxing and review. If a brand wants to promote a new item or a line of products, they can partner with influencers who do product unboxing and reviews. Product reviews by influencers can also be used as part of a company’s omnichannel marketing. They can be featured in paid ads across social media or used on the website’s product page.
- Promotion of a brand’s campaign. Global brands often combine influencer marketing campaigns with other initiatives. For example, a company that wants to showcase its switch to sustainable practices can organize a campaign related to eco-friendly policies. This can be promoted by influencers or celebrities who also stand behind these practices. These campaigns boost brand awareness and can increase revenue in the long run.
Examples of Influencer Marketing Campaigns
Millions of businesses around the world collaborate with influencers. Here are a few examples of businesses that have successfully implemented influencer marketing as part of their marketing and advertising efforts.
- Gymshark. The company establishes successful long-term partnerships with “Gymshark Athletes”, which are like brand ambassadors for their products. That includes fitness influencers, athletes, and even enthusiasts.
- Daniel Wellington. Although the company is fairly young, it managed to quickly become one of the known watch brands worldwide. Daniel Wellington gifted free watches to thousands of nano and micro-influencers. All they expected in exchange was influencers to post content with their product and use their branded hashtag. This user-generated content led to a viral campaign that boosted both sales and brand recognition considerably.
- Chipotle. The company has seen great success in recent years as they’ve used the power of social media and influencer marketing to their advantage. Even in the hyper-competitive food service industry, Chipotle has shown that restaurant marketing needs to adapt.
Frequently Asked Questions about Influencer Marketing
From advice on eCommerce marketing automation to tips on how to market a restaurant, you’ll find plenty of resources on our website. Below, you can read the answers to common questions regarding influencer marketing.
How to Find Influencers?
Working with a digital marketing agency is recommended when planning to do influencer marketing. These businesses can also properly track the results of the campaign. Search for influencers that are followed by your target audience on places like YouTube, TikTok, and Instagram. Bloggers can also be used as part of an influencer marketing campaign. It’s important to properly pick influencers to partner with in order to achieve good brand awareness and high ROI. When searching for influencers, keep in mind that small and regional businesses should primarily work with nano and micro-influencers.
What Businesses Use Influencer Marketing?
All companies can benefit from influencer marketing. However, it’s primarily used to boost eCommerce and social commerce sales. Global brands spend the most on partnerships with mega influencers. Small and local businesses primarily use the services of nano or micro-influencers. Although they have a much smaller reach, their audience is better targeted. The main sectors that use the services of influencers are beauty, fashion, electronics, entertainment, and personal finance. Various online and brick-and-mortar retailers also partner with celebrities or niche influencers for their marketing campaigns.
How to Track Influencer Marketing?
Tracking the results from partnering with influencers can be challenging. Some campaigns use promo codes or affiliate links in order to track the sales that have come through this advertisement. However, it’s harder to track brand awareness campaigns. Metrics such as store visits and website traffic can be used, but they don’t necessarily convert to sales. In general, when using influencer marketing, businesses need to set proper goals and expectations and track them with analytics tools.
BlueCart: The Wholesale Ordering Software to Boost Your B2B Business
It can be hard for wholesalers to benefit from influencer marketing. However, that doesn’t mean these businesses can’t advertise and market their products and services. BlueCart is a platform that specializes in B2B sales. Our software has various marketing tools and also allows distribution companies to automate certain processes. Whether you’re a broadline distributor or a niche supplier, you can find out more about BlueCart’s distributor marketing and eCommerce tools by scheduling a demo!