An overview of the underlying reasons behind the success of influencer marketing.
Consumer marketing is constantly evolving in its quest to reach new customers and retain the existing ones. Celebrity endorsements have been around ever since the early ‘90s and they have gathered more speed since social media came into play. However, as consumers grow more and more aware of the negative effects of advertising, and the subliminal gimmicks many marketers employ to generate sales, many of them have begun blocking out ads and active marketing content, putting marketers in somewhat of a dilemma. Around this same time, modern consumers have come out of the hero-worshipping mindset and begun holding celebrities accountable for their choice of brands. The controversies and mistrust surrounding celebrity endorsements have created a further dip in the credibility and effectiveness of conventional forms of marketing, and marketers are now forced to look for more creative, yet trustworthy media to promote their brands. The solution? Social media influencers.
The outright difference between celebrity endorsements versus social media influencer endorsements is simply personal connection. Celebrities are adored and coveted from afar, but they have too much red tape and too many fans around them to make any sort of personal connection. As most celebrities use agents to run their social media pages, the average consumer is always confused about whether they are being heard by, or being responded to, by the celebrities or someone else, so there is virtually no trust on that front. Social media influencers, on the other hand, have built their entire business around the trust and special connection they forge with consumers and exploit this USP for more fan following and views. According to recent studies by Business Insider Intelligence, social media influencer marketing is supposed to reach an all-time high, valued at USD 15 billion this year, and in the face of a pandemic-led hike, this comes as no surprise.
One reason why social media influencers are gaining importance over other traditional forms of advertising is that celebrities endorse brands based on their unique image. However, they are not experts in the type of product or service they promote at all. Therefore, while their presence gives the brand a lot of exposure, it cannot guarantee sales. Contrary to that, most social media influencers are experts in their fields and consumers can therefore trust their tips, advice and recommendations more fully. To quote numbers, non-celebrity influencers are substantially higher on the credibility spectrum, with 30% of consumers willing to buy products recommended by them, whereas celebrities take a far lower place, at a sales conversion rate of merely 3%. According to another research by MuseFind, almost 92% of customers trust a social media influencer more than traditional advertisements or celebrity endorsements. Yet another study found that about 33% of consumers trust influencers when making shopping decisions while only around 17% place that same level of trust on their families and friends.
Another reason why consumer interest in social media influencers is on the rise is because they identify deeply with influencers that do not have celebrity status and are ordinary people they can reach out to. They trust these people as they lack the larger-than-life persona of celebrities and are more open with their followers about themselves, and their normal, relatable lives. On the flip side, they do not trust celebrity endorsements because consumers now are much better informed than they were ever before. They are sceptical about celebrity endorsements because of the substantial financial transactions that happen behind the scenes, and do not believe that celebrities that endorse products use them in real life.
Throw in the pandemic, when online shopping had become the norm, and people were looking for quality over quantity and a higher perceived need or value of a product, influencers took the bait and outdid themselves with reviews and recommendations that buyers could trust. This paid off and even now when the world is gradually waking up from the COVID slumber, influencers enjoy strong consumer loyalty. Research suggests that these loyal customers return to social media multiple times a day to see new content from an influencer they genuinely trust and follow. Perceived value or need for a particular product can be created for these consumers by offering them coupons redeemable through their mobile phones or through SMS loyalty rewards, which quickly translate views into sales.
Having mentioned a few of the reasons for the rise of the influencer parade, it is also worth mentioning that trust in the influencer has a more subtle sub branch – trusting the media it is on. Instagram, Facebook and TikTok are all platforms on which influencers practise their trade and different forms of social media resonate with different age groups of consumers. For instance, close to 32% of Gen Z consumers considered Instagram as the most trustworthy than other social media, while 31% of baby boomers preferred Facebook. Just like influencers, different media hold different levels of credibility for consumers. For some, content on Instagram is more trustworthy than content on Facebook and vice versa. This could be due to the gatekeeping strategies adopted by different forms of social media and the sort of filters they use to keep falsified information and fraudulent influencers at bay.
It is no hidden fact that influencers have gained traction and the trend curve will continue to go up in the coming years. While it may seem as if social media influencers can do no wrong, their platforms are highly volatile and dynamic. Customer interests and expectations change, and they change fast! As such, influencers must constantly be ready to adapt to evolving trends. Marketers have been quick to jump onto the influencer bandwagon, hiring them to promote and review their brands extensively. Thanks to the popularity and financial returns promised by this profession, influencers now are a dime a dozen and this has led to a saturation point in the industry. Many feel that this phenomenon has indicated a decreasing level of trust in influencers and their effectiveness.
One of the ways in which influencers can contain the volatility of the social media market and take advantage of the growth it entails is through thorough due diligence. The numbers indicate that a vast majority of online shoppers, almost 93%, prefer going through online reviews before making a purchase, and another 34% of shoppers stated that well researched and unbiased reviews were the best way for influencers to win their trust.
If influencers start promoting certain brands over others, they tend to lose credibility in the eyes of consumers who are looking for unbiased recommendations. According to a study, one in three respondents claimed that too many sponsored posts make them lose trust in social media influencers. Therefore, while promotional content helps pay their bills, influencers must be willing to strike a balance between sponsored posts and their own creative work. As customers still carry over some level of scepticism from traditional media tactics, it is advisable that even if money changes hands between an influencer and a brand, influencers should choose to remain true to their customers and provide honest reviews instead of being bought into brand loyalty. This will ensure customer retention, loyalty and good word-of-mouth.
According to experts, a high number of heavily edited pictures and videos as well as influencer ‘lingo’ can also make influencers seem less genuine and lend an air of dishonesty to their content. Overly perfected or rehearsed content also loses its relatability with consumers’ lives which may invariably cause them to lose interest in an influencer’s views. Already, customers have very strong opinions on what influencers should and should not do. While 62% of those interviewed said that influencers should not promote products that they themselves do not actively use, some 82% felt that they should disclose whatever history they have had with the product in question. Another 77% felt that side effects and negative sides of the products should be disclosed just like the positive sides are being highlighted to wipe out any inauthenticity. Around 37% of people aid that if a review was high quality and unbiased, it even invalidated the fact that it was sponsored. As consumer expectations rise, so does the pressure on the modern influencer.
Due to the nature of their work, brands that wish to hire influencers can never exercise full control over the content produced. Marketers, in collaboration with influencers, can gain some control over contacts in the form of texting, blogs and email, but influencers still reign as primary content creators. This may work in favour of content creators as they strive to create truthful footage to share with their viewers. Consumers love to hear from other consumers, and a good influencer is one who can become that consumer for their followers. While buyers may not trust brands, they will have every reason to trust influencers, provided they announce paid promotions and partnerships and yet continue to churn out the best candid content for the benefit of their viewers.
