WHERE ENGAGEMENT MATTERS

Manilka Ediriweera discusses the impact of the newcomers on businesses

An influencer is someone with a large base of followers in a distinct niche with whom he or she actively engages – and has the capacity to influence their buying decisions. With social media playing an integral part in our lives along with the step change to social commerce, influencer marketing has skyrocketed.

People are turning to their favourite celebrities, Instagram models, bloggers, YouTubers and Twitter personalities, for tips and suggestions on purchasing decisions.

Consumers are also turning a blind eye to traditional advertising by engaging ad blockers, cord-cutting and media fasting; they have even developed a phenomenon known as ‘banner blindness.’ This has made brands turn to influencer marketing.

Statistics show that eight out of 10 consumers have purchased goods based on recommendations by influencers and the influencer marketing industry is set to hit US$ 15 billion by next year. This information offers a glimpse into the importance of influencer marketing in today’s world.

So what is influencer marketing?

It can be defined as a marketing strategy employed by businesses to promote their products and services, by collaborating and partnering with popular social media users or influencers. Influencers are of three types – viz. micro-influencers with less than 10,000 followers, macro-influencers with between 10,000 and one million followers and mega-influencers with more than a million followers.

This concept is appropriate in today’s world because currently, businesses tend to focus on offering their target audience what they want, building rapport and engaging to create brand loyalty. And there is no better way to do this than through influencer marketing – because influencers already have loyal and engaged audiences, which businesses can tap into to build credibility and drive sales.

Influencer marketing also enables companies to build trust in a brand, increase brand awareness, create brand loyalty, attract new audiences, and boost marketing ROI and the bottom line.

There are several types of influencer campaigns of which the more popular are discount codes and affiliate marketing, competitions and giveaways, social media takeovers, unboxing and reviews, pre-release campaigns, and sponsored blogs and posts. Most of these campaigns run on social media channels.

Of the many platforms available, Instagram ranks first as the most important and impactful for influencer marketing – it boasts more than one billion users and a rising network of influencers. YouTube, Facebook, blogs, Twitter, LinkedIn, Pinterest, Twitch and Snapchat are the other important social media channels.


Here are some of the popular reasons why influencer marketing works.

TRUST Consumers trust influencers and this is the main reason that influencer marketing has become remarkably successful.

QUALITY Influencers create high quality content that can help brands run innovative and unique campaigns.

NO BLOCKS Influencer marketing is not impacted by ad blocking, which is an advantage in the current context.

INSIGHTS Influencers provide valuable insights into customers and their needs, opinions and feedback on products that can be used by businesses for product development, marketing and sales.

Influencer marketing is a popular and effective strategy because 49 percent of customers make purchasing decisions based on influencer recommendations; 89 percent of marketers claim that influencer marketing ROI is equal to or greater than other marketing platforms; and businesses generate US$ 5.20 for every dollar spent on average.

Furthermore, only one percent of millennials trust advertisements while 33 percent rely on blog reviews; 70 percent of teen subscribers on YouTube trust the opinions of influencers and content creators over celebrities; and 86 percent of women use social media to seek purchasing advice.

However, due to the success of the influencer marketing industry, there’s a rise in the number of social media influencers leading to market saturation. Another cause for concern is the increasing number of people posing as influencers by buying fake followers.

So it’s crucial for brands to find the right influencer with
the ability to create engaging and unique content. Otherwise, this modus operandi can cause more harm to the brand than good.

As marketing guru Seth Godin says, “people do not buy goods and services. They buy relations, stories and magic.”

This speaks directly to the heart of the influencer market-ing concept and highlights how crucial it is for businesses to collaborate with the right influencers, build solid relationships with them, allow them to be themselves and let their talent shine, as well as create savvy influencer marketing strategies.