Does influencer marketing work?
Introduction
If you’ve spent any amount of time on the Internet recently, you’ve no doubt heard of influencer marketing. But what is this form of marketing, why has it become so popular? More importantly, does it work?
Let’s dig in.
Defined simply, influencer marketing leverages individuals with dedicated followings (think social media stars and celebrities) to promote and endorse products and services.
Influencer marketing, despite becoming a part of modern-day vernacular, is not a novel form of marketing. In fact, the oldest recorded instance of influencer marketing dates back to the 1760s, when an English pottery maker Josiah Wedgewood used royal endorsements to sell his wares to the general public.
Having previously created tableware for Queen Charlotte, he marketed the pottery as “Queen’s Ware,” which was of great interest to the common folk in the United Kingdom. It turns out the strategy was highly effective, propelling Wedgewood to extraordinary wealth, having sold an incredible amount of his product.
Today, influencer marketing has exploded in popularity online, particularly since the pandemic of 2020, in which a great majority of the population was indoors consuming content from platforms like Instagram, TikTok, Twitter, YouTube, Facebook, and more.
Influencer Marketing Effectiveness
Let’s not beat around the bush; influencer marketing is effective. The fact that an entire industry has been build around it and that its popularity continues to rise is evidence.
It seems that every popular YouTuber is running influencer marketing integrations in their latest uploads these days, many of whom continue to work with the same brands. For example, YouTubers Kara and Nate have a longstanding relationship with AG1, a nutrition company.
You can probably think of a specific content creator you enjoy watching and the brands they frequently talk about, too.
It's surefire proof that these arrangements are working out. Otherwise, why would brands be wasting their precious marketing dollars?
Nearly all influencer marketing campaigns have been diligently tracked to ensure they’ve met or exceeded pre-defined key performance indicators, or KPIs. These KPIs can range from engagement rates, conversion rates, return on ad spend, and much more. The idea? To measure whether the campaign works, and to gather information for use in future campaigns.
These marketing campaigns in their simplest form work by means of human psychology. By presenting a product or service to an audience from someone they trust or look up to, it’s an effective method of endorsements. But as we’ll discuss later, comes with some pretty big responsibility.
Influencer Marketing Benefits
Why would a brand elect to go with influencer marketing versus other forms of marketing?
Truth be told, while some brands may use influencer marketing exclusively, we have found that most brands are using this method in conjunction with other advertising strategies, such as digital, print, and television.
Ultimately, the objective for a brand might vary. Some brands are seeking to build brand awareness and reach. Others are looking to convert impressions to sales immediately. But when partnering with an influencer, the overarching idea involves building credibility and trust with prospective audiences.
Think about it this way: when your car needs some work done, or you need to find a new place to get your hair cut, what do you do? You ask someone you trust for recommendations. They provide you with a recommendation, and you have been influenced to follow it because you trust that person. If you don’t ask someone you know, you turn to online reviews, where the same concept applies.
This concept applies in influencer marketing as we know it. Audiences watch content creators they trust. When that content creator makes a recommendation for a product or service, the audience member is more likely to take that more seriously than, say, seeing it in a magazine or during a television show.
Limitations and Challenges
But influencer marketing doesn’t come without its own pitfalls. One of the major issues we deal with this form of marketing involves authenticity of influencer recommendations. Is the influencer really passionate about the product they are talking about, or do they only speak about it favorably because they are being paid to do so?
We’ve found a way around this by ensuring the influencers we work with use, know, and love the products they talk about. Not only is this the right thing to do, but the end result is a more authentic integration that resonates with audiences.
Other issues involve trust. Is the brand that is paying for the advertising trustworthy? Or are they a fly-by-night operation that runs with consumers’ money and never delivers? We’ve also found a way around this by carefully vetting the brands we work with by ensuring they have a solid reputation and are creditworthy.
In addition to the above issues, we also deal with influencer oversaturation and fatigue. It seems as if everyone with a social media account today is an influencer, willing and ready to plug any product that comes their way. Many of the influencers we work with like to limit the number of integrations they work on in any given time period. They don’t believe they need to plug a product or service to their esteemed audience at every turn, and we wholeheartedly respect and encourage that.
Finally, we’d be remiss if we didn’t mention issues surrounding measuring return on investment (ROI) accurately in influencer marketing campaigns.
How do we know any specific engagement was real? Can we be sure that a specific conversion came as a result of the integration? We can generally avoid this type of by using tracking links, coupon codes, and other methods, but there will always be a lingering “what if?” scenario to think about.
What Makes a Successful Influencer Marketing Campaign?
How do you know an influencer marketing campaign has worked, anyway? Is it entirely empirical, based on feel, or both?
In our experience, both.
Clearly, every campaign should be hitting targets or exceeding them. That’s one way we measure success in a campaign. But the other way is intangible. At Dalton Street, we use what we call the Happy³ framework. It’s completely unscientific, but totally reliable.
Happy³ is the idea that all involved parties in an influencer marketing campaign are happy with the end results:
Influencer = happy.
Brand = happy.
Audience = happy.
How do we define happy, though? Here’s how we look at it:
Influencer: felt as if the product/service was something they were genuinely interested in. They felt they were compensated fairly for their time and effort and would work with the brand again.
Brand: felt as if the influencer properly conveyed their thoughts about the product/service in an honest manner and with excitement. The end results of the campaign hit or exceeded targets, and the brand would absolutely work with the influencer again. They felt the ad spend was well worth it.
Audience: felt as if the integration was useful and relevant. They felt the brand and the influencer understood their needs, and as a result will try, use, and recommend the product or service to others.
That’s the idea behind Happy³.
We think about selecting the right influencers, how relevant products and services are to specific audiences, how well things align with a brand’s values, and so much more. This is something our team does exceptionally well. We see integrations as more than simple transactions. We see them as something that seriously must work out for all that are involved.
Often times, this means passing up on a majority of potential brand deals. But we, our creator partners, and our brand partners know it’s for the success of the campaign.
Implementing Effective Influencer Marketing Campaigns
There are a few key steps to implementing effective influencer marketing campaigns.
The first is setting clear expectations, goals, and objectives. Communication is key here. If everyone is completely clear on what expectations are, there is no excuse for not being able to meet those expectations as the campaign starts.
Secondly, it’s important to develop authentic relationships between brands and influencers. Many people would be surprised to find out that we generally start working on campaigns months out. This allows time to set expectations, ensure the influencer has time with the product and service, and can feel confident talking about it in front of their audience in an authentic manner.
Thirdly, we give considerable through to how we’re going to leverage different platforms and content formats. Is an integration more suitable for an influencer’s Instagram, or perhaps their YouTube account?
All things we think deeply about.
Conclusion
Influencer marketing is a complex but rewarding method of advertising. It has proven its worth many times over, and we’re only seeing increased interest in this form of advertising from brands.
With its ability to amplify brand visibility, foster authentic connections, and drive real results, influencer marketing stands as a formidable force in the advertising landscape. As brands continue to harness its potential, adapting to changing consumer behaviors and leveraging strategic partnerships, the trajectory of influencer marketing seems poised for continued growth and innovation.
