How Influencer Marketing Works (And How to Make It Work For You)
Influencer marketing has become one of the most powerful tools in a marketer’s arsenal. With the rise of social media such as Instagram, TikTok, and YouTube, brands have access to exclusive audiences that influential individuals resonate with in their followers. But how does influencer marketing work and how can you make it work for your business? In this guide, we will cover it all, from the basics up to actionable strategies.
What is Influencer Marketing?
At its essence, influencer marketing is a partnership between a company and an individual with a substantial following that is engaged. These influencers produce content that resonates with their audience, and through their influence, they promote products, services, or brands that align with the tone of their message. Lean more about How Influencer Marketing Works (And How to Make It Work For You)
Influencers typically fall into different categories according to their followers:
- Nano Influencers (1k-10k followers): Good for niche markets because they have very engaged followers.
- Micro Influencers (10k-100k followers): Perfect for smaller campaigns that bring in higher return on investment (ROI).
- Macro Influencers (100k-1M followers): Great for brands looking to reach beyond a specific niche.
- Mega/Celebrity Influencers (1M+ followers): Best for brands with deep pockets and/or global ambitions.
What differentiates influencer marketing from other forms of advertising is its authenticity. Rather than being invasive to consumers by interrupting them with ads, influencers integrate brands seamlessly into content creation, fostering trust and relatability for both brands and their customers.
Why is Influencer Marketing Effective?
Influencer marketing produces results because it capitalizes on the effect of social proof. People trust the opinions and recommendations of those they admire or identify with. A Nielsen study found that 92% of consumers believe recommendations from people they trust – in other words, someone in whom they feel confidence.
Assuring Credentials: Influencers generally build trusting relationships with their audience through honesty and common ground with them. By collaborating with these people, related reliability and authenticity are added to brand introductions.
Targeted Audiences: Influencers often have audiences with a more focused, specific vibe, which results in simpler targeting of marketing demographics and more leads.
Higher Engagement Rates: Social media users interact with influencer posts more than traditional brand advertising.
Compelling Storytelling: Influencers give a human touch to your real goods, rather than relying on sales rhetoric.
For more information on why influencers are crucial to marketing, check out our guide on why influencers are important in marketing.
In Practice, How Influencers Market Works
Now that we know why influencer marketing is effective, let’s break down how influencer marketing works step by step.
Step 1: Set Goals and Budget
Before contacting influencers, have your goals clear. Some things you might aim for are:
- Raising brand awareness
- Pushing sales
- Developing your presence on social media
- Gaining leads
Your budget also needs to be planned. Fees may range from sending an influencer various freebies to thousands of dollars depending on their reach and audience engagement level. Nano or micro influencers may accept products for free, while a macro or celebrity influencer may charge thousands depending on their scale of influence.
Step 2: Find the Right Influencers
The selection of the right influencers is crucial. Look for influencers whose values and audience align with your brand’s own. Consider the following factors:
- Niche relevance: Does their content closely match your industry or product?
- Engagement rate: Do their followers actively like, comment on, and share their posts?
- Demographics: Does their audience match your target demographic?
Tools like Aspire, Upfluence, and Heepsy can help you find influencers in areas of interest. Always check the authenticity of an influencer by comparing the quality of their followers and their engagement rate before deciding to partner with them. This helps avoid partnerships with “influencers” who have purchased followers.
Step 3: Plan Collaboration
Once you’ve identified the best collaborators, it’s time to negotiate and plan. Possible ways to collaborate include:
- Sponsored Posts: A single blog post or social media post where your product or service is featured.
- Product Reviews: Influencers give an honest evaluation of your product, sharing their experiences.
- Giveaways or Contests: Collaborations where influencers host a contest and encourage their followers to participate.
- Takeovers: The influencer takes over your brand’s social media account for a few days to engage their audience.
- Affiliate Marketing: You pay influencers a commission for each conversion they bring through a unique affiliate link or code.
In your contract, ensure you clearly list all products and services along with deadlines and payment terms.
Step 4: Make Genuine and Animated Content
The power of influencer marketing lies in the natural feel of the content. While it’s tempting to specify every detail about the campaign, remember to give influencers creative freedom. After all, they know their audience best. Let them create content that aligns with their style while featuring your product in a genuine way.
For example:
- A beauty influencer may record a “Get Ready with Me” video using one of your skincare products.
- A fitness influencer might create a TikTok video using your workout equipment.
Step 5: Launch and Track the Campaign
Once your campaign is live, keep track of its performance. Key performance indicators (KPIs) to monitor include:
- Impressions: How many people saw the content.
- Engagement: Likes, shares, comments, and direct messages generated.
- Clicks: How many users clicked a link or used your promo code.
- Sales or Conversions: Purchases driven by the campaign.
You can use Google Analytics, affiliate tracking software, and influencer marketing platforms to monitor these metrics.
Step 6: Foster Long-Term Relationships
The best influencer campaigns are not about one-off collaborations, but rather about building long-term relationships. Consistent work with top influencers can help your brand become more authentic and memorable in the minds of their followers.
Choose Just the Right Platform
Where your campaign lives depends entirely on your target audience. Here’s a quick rundown of the most popular platforms:
- Instagram: A big hit with lifestyle, beauty, and fitness brands due to its photo-based nature.
- YouTube: Great for long-form content like tutorials and reviews.
- TikTok: Best for Gen Z fans and creative, short-form videos.
- LinkedIn: Perfect for B2B brands and professionals.
- Twitter: Ideal for technical and news-based influencer marketing.
Influencer Marketing’s Challenges
Influencer marketing, like any strategy, faces challenges:
- False Influence: Some influencers may have fake follower counts or inflated stats. Tools like HypeAuditor can help assess the true value of influencers.
- Cost: Collaborating with macro-influencers or celebrities requires significant investment.
- Compliance: Be aware of advertising disclosure rules. Influencers must include tags like #ad or #sponsored when promoting paid content.
Last Words: Effectively Leveraging Influencer Marketing
The reason influencer marketing works is that it doesn’t interrupt customers but flows naturally into their conversations. By selecting the right influencers, creating engaging campaigns, and tracking results, your company can tap into new market segments and make an impression.
Whether you’re a small business or a large corporation, influencer marketing offers many opportunities to increase your audience and grow your brand. Start leveraging influencer marketing today and see the impact it can have on your brand.
