Influencer Marketing: A Fast Growing Channel For Customer Acquisition
Influencer marketing is defined by word-of-mouth marketing, and is considered one of the fastest growing areas within customer-acquisition marketing, even outpacing organic search and email marketing.
Some of the key benefits of influencer marketing include being a cost effective solution with high quality content and built-in distribution. Influencers have built in trust, different than spending money to build followers on a brand’s Facebook page for example.
Influencer marketing is relationship based with mutual value for both parties. Gaining impact for a brand may include a range of influencers from small to large. It starts with defining the strategy and objective and determining the right mix of key influencers. A credible social listening tool is one of the ways to determine who is talking about the subject; are those conversations aligned with your brand, and then draw out influencer maps.
Key influencers are identified by their engagement, which includes likes, comments and retweets. The engagement will demonstrate that the influencers have attractive content. Marketers should also look at both reach and engagement as a measurement of how the content will be received by the target audience.
From the insights from social listening you can identify the social platform that will work best for your brand.
By the year 2108 it is expected that influencer marketing could exceed the banner inventory available. Approximately 50% of marketers use influencer marketing to generate leads and drive sales, with 40% focused on brand engagement.
In terms of return on investment for influencer marketing, for every dollar spent, there is an average return of $6.50 in additional earned media on top of the $1 investment.
According to the Tomoson survey, marketers plan to increase their budget in the next 12 months for influencer marketing.
In a poll of marketers, when asked what was the most effective platform for influencer marketing, answers included 37% blogs, 25% Facebook, and YouTube, Instagram, and Twitter each got 5% to 6%.
The average length of most influencer campaigns range anywhere from 1 day to 2 months with the top length being 7 days that delivers the highest engagement rate.
To sum up, influencer marketing is an effective and quality distribution method for reaching key target audiences that is cost effective. With $6.50 being the average return on investment, it is no surprise that influencer marketing is the fastest growing channel for customer acquisition.
Source: Chief Marketer, The Power of Influencers 2015. TopRank Blog, December 2, 2015