Log In Start studying!

Select your language

Suggested languages for you:
StudySmarter - The all-in-one study app.
4.8 • +11k Ratings
More than 3 Million Downloads
Free
|
|

Influencer Marketing

Influencer Marketing

If you have ever used social media, you have likely seen influencers promoting products or entering partnerships with brands. You might even follow numerous influencers on Instagram or TikTok, or you might actually be an influencer yourself. Did you know that an individual with over 1,000 followers is technically classified as a nano influencer? Of course, nano influencers share different traits to mega influencers with millions of followers. However, they can be more impactful for a brand's marketing than you might think. Brands can leverage all types of influencers for their marketing goals, known as influencer marketing. Read along to learn more about the behind-the-scenes of influencer marketing.

Influencer Marketing Meaning

Before diving deep into influencer marketing, let's first try understanding what an influencer is.

In marketing, an influencer is an opinion leader who can impact customers' purchase patterns.

Nowadays, when we think of influencers, we might think of people with millions of followers on popular social media sites like Instagram or Facebook. However, an individual does not need millions of followers on social media platforms to be classified as an influencer. In fact, any social network, no matter how large or small, can create influencers or opinion leaders. So, what are the different types of influencers? They are generally defined as follows1 :

  • Nano influencers - Influencers that have between 1,000-10,000 followers on a social media platform. Nano influencers typically benefit from high engagement rates and provide effective marketing results for startups and small businesses, due to their cost-effectiveness.

  • Micro-influencers - Influencers that have between 10,000-100,000 followers. Consumers still consider micro-influencers genuine and relatable despite their considerable following and, as a result, can generate positive engagement. Businesses should aim to find micro-influencers that operate in a similar niche. This allows for effective lead generation.

  • Macro influencers - Influencers that have between 100,000-1,000,000 followers. Macro influencers are also known as social (media) celebrities and appeal to a wide range of viewers. Thus, their engagement rates tend to be lower. Macro influencers are optimal for increasing brand awareness but may not be as effective for conversions as smaller influencers.

  • Mega influencers - Influencers that have over 1 million followers. Mega influencers have a broad audience, so their reach can be high. Mega influencers are also optimal for increasing brand awareness; however, marketers might encounter high fees when trying to partner with them.

Now that we understand the different types of influencers and the benefits they can bring to a brand, we define influencer marketing as follows.

Influencer marketing is a form of marketing that promotes products or services through an influencer, most often on social media platforms.

Influencer Marketing Trends

So, why are more and more marketers adopting influencer marketing techniques nowadays? Well, primarily due to the popularity of social media platforms. At the beginning of 2022, Facebook had over 2.9 billion worldwide monthly active users, followed by YouTube and Whatsapp, with over 2 billion active users, and Instagram, with 1.478 billion monthly users.2

Influencer Marketing Social media influencer marketing StudySmarterFig. 1 - Social Media Influencers

Now, you may be wondering why so many people use social media. A survey conducted in 2021 found that the primary reason for using social media is to connect with friends and family, but 26.3% of respondents said they use it to find products to purchase.3 As a result, social media presents a significant sphere for marketers to promote their products.

Check out our explanation of social media marketing to learn about social media's ins and outs.

So, what are some trends we see with influencer marketing? First of all, the global influencer marketing market size in 2022 is valued at 16.4 billion USD - an almost tenfold increase since 20164 - and creator marketing spending in Europe in 2020 was over 1.3 billion EUR (around 1.28 billion USD).5 Regarding influencer, some key trends are as follow:

  • Instagram influencers with 1,000-5,000 followers have the highest engagement rate (4.59% in 2021), almost three times higher than influencers with over 1 million followers (1.67% engagement rate in 2021).6

  • TikTok influencers show a significantly higher engagement rate compared to Instagram influencers. Nano influencers on TikTok have an average engagement rate of 11.41%; meanwhile, mega influencers show an average engagement rate of 13.94% in the UK.7

  • Most business-to-consumer (B2C) marketers primarily use influencer marketing to increase brand awareness; this is followed by the objective of growing social media following, increasing sales, improving brand recognition, web traffic, and, finally, direct conversion.8

  • The three most significant challenges and concerns B2C influencer marketers face are costs, measurability, and authenticity.9

  • Over 84% of B2C marketers in the UK are planning on increasing their influencer marketing spending in 2022.10

  • The most popular forms of influencer marketing marketers use (from highest to lowest popularity) are sponsored content, social media takeovers, brand ambassadors, competitions and giveaways, product collaborations, affiliate marketing, and gifting.11

Have you ever wondered how much Instagram influencers earn on average per post?

Table 1 below shows Instagram influencers' expected remuneration (how much they earn) per Instagram post. We can see that the average price they receive increases with the number of followers they have. Interestingly, although influencers with a higher number of followers exhibit lower engagement rates, they earn more per post. This is likely due to marketers' willingness to pay to increase brand awareness by using influencers with a large following.

Number of Followers
Average Expected Remuneration (USD)
1-9,999
193.74
10,000-19,999
273.82
20,000-29,999
311.31
30,000-39,999
377.56
40,000-49,000
517.91
50,000-59,000
744.56
60,000-69,000
750
70,0000-79,000
809
80,000-89,000
1,001
90,000+
1,221
Table 1 - Expected Remuneration of Instagram Influencers in the UK. Source: Intellifluence.

Influencer Marketing Strategy

Let's now take a look at key influencer marketing strategies. First, let's explore how marketers can ensure that their influencer marketing is optimized. There are three crucial elements of an influencer marketing strategy that help attract new customers and maintain longstanding relationships with existing customers (see Figure 2 below):

  1. Listen - Marketers must listen to what their audience wants and needs. They should also pay attention to what interests their community and figure out which types of creators (influencers) and content engage their audience.

  2. Identify - Based on the information marketers gathered during the listening phase, they should identify which creator suits their demographic the most. The creator might not have the most followers, but they should create content that engages the community.

  3. Deploy - The created content should be authentically deployed into the platform. Having creators follow rigid guidelines and content structures comes across as inauthentic. Marketers should let creators create the type of content they are familiar with and inspired to create, as this will lead to a stronger relationship with the community.13

Creators with the largest followings (reach) can be effective in broadcasting brand messages in ways that rapidly increase brand awareness. Creators with smaller followings (niche) can provide more targeted and cost-effective audience engagement— but your teams may need to manage a much larger number of niche creators in order to achieve the desired impact.14

According to Deloitte, influencer marketing nowadays is about emphasizing connection and relevance. To do this, marketers should:

  • Focus on the quality and sincerity of the messages that creators transmit regarding the brand,

  • Focus on how trustworthy a creator is in the brand's industry,

  • Assess whether the creator can transmit behavioral changes within the desired community,

  • Assess the creator's audience and whether they would fit the brand well.14

Additionally, marketers should try to engage influencers and creators throughout the marketing process, including strategic planning, etc., to foster a personal relationship with them. This strategy also helps the creator form an authentic connection with the brand.14

Influencer Marketing Platform

Nowadays, many marketers use influencer marketing platforms to ease the influencer marketing process. These platforms help marketers track progress, manage influencer relationships, view marketing results, etc. They provide oversight of the influencer marketing process.

For example, GRIN is a creator management platform that connects brands to creators, helps brands communicate with creators and manage the creator-brand relationship, and provides a tool for analyzing and reporting influencer marketing campaigns.

Another example of an influencer marketing platform is Creator.co, an influencer marketing platform for eCommerce brands. The platform allows marketers to automate their influencer marketing campaigns, connect their eCommerce store to participate in affiliate programs, and manage their social media accounts, among many other features.

Check out our Affiliate marketing explanation to find out whether an affiliate is an influencer.

Influencer Marketing Examples

Now that you understand the basis of successful influencer marketing let's explore a couple of influencer marketing campaigns in action.

In 2020 Dunkin Donuts partnered with Charli D'Amelio, a TikTok influencer who gained popularity by making dance videos. D'Amelio has over 147 million followers on TikTok, so the brand partnership caught quite a few people's attention. The influencer posted a series of TikToks eating Dunkin Donuts and drinking her signature "The Charli" drink. Partnering with a mega influencer helped Dunkin Donuts increase awareness of its general brand and mobile app. The collaboration resulted in a successful increase in sales and a whopping 57% increase in customers downloading the Dunkin Donuts app.15

We can observe another example of influencer marketing through Taco Bell.

Taco bell partnered with Doja Cat to announce the potential return of its Mexican Pizza food item. The prequel of the collaboration started when Taco Bell announced that it would discontinue Mexican Pizza in November 2020. The news left many Taco Bell fans upset, including Doja Cat, who tweeted several times about her strong feelings regarding the removal of the item. Doja Cat's tweets gained a lot of traction within the group of equally upset Mexican Pizza fans. As a result, Taco Bell partnered with the influencer to create a video on TikTok dedicated to Mexican Pizza. The video got over 8 million views and 200 thousand shares, increasing brand awareness for Taco Bell.16

Influencer - Key takeaways

  • In marketing, an influencer is an opinion leader who can impact customers' purchase patterns.
  • There are four types of influencers: nano, micro, macro, and mega influencers.
  • Influencer marketing is a form of marketing that promotes products or services through an influencer, most often on social media platforms.
  • An influencer marketing strategy should focus on listening to community wants and interests, identifying an influencer that engages the community, and creating content that is authentic to the influencer's style. These steps help marketers attract new customers and retain existing, loyal customers.
  • Influencer marketing platforms help marketers track progress, manage influencer relationships, view marketing results, etc. They provide oversight of the influencer marketing process.

References

  1. Find Your Influencer. What are the Different Types of Social Media Influencer?. 2021. https://www.findyourinfluencer.co.uk/blog/different-types-of-social-media-influencer
  2. We Are Social, Hootsuite, DataReportal. "Most popular social networks worldwide as of January 2022, ranked by number of monthly active users (in millions)." Chart. January 26, 2022. Statista. Accessed September 29, 2022. https://www.statista.com/statistics/272014/global-social-networks-ranked-by-number-of-users/
  3. GWI, We Are Social, Hootsuite, DataReportal. "Most popular reasons for internet users worldwide to use social media as of 3rd quarter 2021." Chart. January 26, 2022. Statista. Accessed September 29, 2022. https://www.statista.com/statistics/715449/social-media-usage-reasons-worldwide/
  4. Influencer Marketing Hub. "Influencer marketing market size worldwide from 2016 to 2022 (in billion U.S. dollars)." Chart. March 2, 2022. Statista. Accessed September 30, 2022. https://www.statista.com/statistics/1092819/global-influencer-market-size/
  5. TikTok for Business, IAB Europe. "Creator marketing spending in Europe from 2016 to 2020 (in million euros) ." Chart. June 1, 2021. Statista. Accessed September 30, 2022. https://www.statista.com/statistics/1268342/creator-marketing-spending-europe/
  6. HypeAuditor. "Engagement rate of Instagram influencers in the United Kingdom (UK) in 2020 and 2021, by number of followers." Chart. July 9, 2022. Statista. Accessed September 30, 2022. https://www.statista.com/statistics/1253260/instagram-engagement-rate-influencers-uk/
  7. HypeAuditor. "Engagement rate of TikTok influencers in the United Kingdom (UK) in 2020 and 2021, by number of followers." Chart. July 9, 2022. Statista. Accessed September 30, 2022. https://www.statista.com/statistics/1253284/engagement-rate-tiktok-influencers-uk/
  8. Cure Media. "Objectives of influencer marketing according to business-to-consumer (B2C) marketers in the United Kingdom as of spring 2022." Chart. May 12, 2022. Statista. Accessed September 30, 2022. https://www.statista.com/statistics/1320348/influencer-marketing-objective-uk/
  9. Cure Media. "Leading influencer marketing concerns/challenges according to business-to-consumer (B2C) marketers in the United Kingdom as of spring 2022." Chart. May 12, 2022. Statista. Accessed September 30, 2022. https://www.statista.com/statistics/1320247/influencer-marketing-concerns-uk/
  10. Cure Media. "Expected change in influencer marketing spending by business-to-consumer (B2C) marketers in the United Kingdom in 2022." Chart. May 12, 2022. Statista. Accessed September 30, 2022. https://www.statista.com/statistics/1320252/influencer-marketing-spending-uk/
  11. Cure Media. "Types of influencer marketing used by business-to-consumer (B2C) marketers in the United Kingdom as of spring 2022." Chart. May 12, 2022. Statista. Accessed September 30, 2022. https://www.statista.com/statistics/1320138/types-influencer-marketing-uk/
  12. Table 1 - Expected Remuneration of Instagram Influencers in the UK, Source: Intellifluence. "Expected remuneration per post of Instagram influencers in Canada, the United Kingdom, and the United States as of May 2021, by number of followers (in U.S. dollars)." Chart. August 4, 2021. Statista. Accessed September 30, 2022. https://www.statista.com/statistics/1258574/instagram-influencers-remuneration/
  13. Kimberly A. Whitler. Leveraging Influencers To Drive Growth: Insight From Managing Director Of Deloitte Digital. Forbes. 2021. https://www.forbes.com/sites/kimberlywhitler/2021/10/23/leveraging-influencers-to-drive-growth-insight-from-managing-director-of-deloitte-digital/?sh=3375fe6168e5
  14. Deloitte. Authentic Influence: Deepen customer trust through a smarter approach to influencer marketing. Deloitte Digital. 2021. https://www.deloittedigital.com/content/dam/deloittedigital/us/documents/offerings/offering-20211117-creator-eminence-Authentic-Influence.pdf
  15. Rosa Tsvetkova. 8 Shining Examples of Influencer Marketing Campaigns. Brandwatch. 2022. https://www.brandwatch.com/blog/examples-of-influencer-marketing-campaigns/
  16. Anneta Konstantinides. Doja Cat says her song about her love of Taco Bell's Mexican Pizza was 'contractual' and she made it 'terrible on purpose'. 2022. https://www.insider.com/doja-cat-tiktok-taco-bell-mexican-pizza-2022-3

Frequently Asked Questions about Influencer Marketing

Influencer marketing is a form of marketing that promotes products or services through an influencer, most often on social media platforms. 

An example of influencer marketing would be a company partnering with an influencer (nano, micro, macro, or mega) to promote a product, service, or brand through social media posts, giveaways, competitions, etc. 

An influencer marketing strategy should focus on listening to community wants and interests, identifying an influencer that engages the community, and creating content that is authentic to the influencer's style. These steps help marketers attract new customers and retain existing, loyal customers. 

The primary disadvantage of influencer marketing is choosing the wrong influencer (one that is not suited to the brand). This could leave customers feeling like the campaign, the influencer, or the brand is inauthentic. 

The platform companies use for influencer marketing depends on their brand priorities. There are a variety of influencer marketing platforms for finding the right creator, using affiliate programs, eCommerce and influencer integration, etc. 

Final Influencer Marketing Quiz

Question

An ______ is an opinion leader who can impact customers' purchase patterns. 

Show answer

Answer

influencer

Show question

Question

An individual needs millions of followers on social media platforms to be classified as an influencer. 

Show answer

Answer

False

Show question

Question

_________ are influencers that have between 1,000-10,000 followers on a social media platform.

Show answer

Answer

nano influencers

Show question

Question

Nano influencers typically benefit from ____ engagement rates.

Show answer

Answer

high

Show question

Question

Influencers that have between 10,000-100,000 followers are ___________.

Show answer

Answer

micro-influencers

Show question

Question

Consumers still consider micro-influencers genuine and relatable despite their considerable following.

Show answer

Answer

True

Show question

Question

________ have over 1 million followers. 

Show answer

Answer

Mega influencers

Show question

Question

Mega influencers have a broad audience, so their ____ can be high.

Show answer

Answer

reach

Show question

Question

_____________ is a form of marketing that promotes products or services through an influencer, most often on social media platforms. 


Show answer

Answer

Influencer marketing

Show question

Question

The three most significant challenges and concerns B2B influencer marketers face are costs, measurability, and authenticity.

Show answer

Answer

False

Show question

Question

Over 84% of B2C marketers in the UK are planning on increasing their influencer marketing spending in 2022.

Show answer

Answer

True

Show question

Question

The three steps of an influencer marketing strategy are: ______, _______, deploying. 

Show answer

Answer

listening, identifying, and deploying 

Show question

Question

Based on the information marketers gathered during the listening phase, they should identify which creator suits their _______ the most. 

Show answer

Answer

demographic

Show question

Question

Having creators follow rigid guidelines and content structures comes across as _______.

Show answer

Answer

inauthentic

Show question

Question

What are some of the functions of influencer marketing platforms?

Show answer

Answer

Influencer marketing platforms help marketers track progress, manage influencer relationships, view marketing results, etc. They provide oversight of the influencer marketing process. 

Show question

60%

of the users don't pass the Influencer Marketing quiz! Will you pass the quiz?

Start Quiz

Discover the right content for your subjects

No need to cheat if you have everything you need to succeed! Packed into one app!

Study Plan

Be perfectly prepared on time with an individual plan.

Quizzes

Test your knowledge with gamified quizzes.

Flashcards

Create and find flashcards in record time.

Notes

Create beautiful notes faster than ever before.

Study Sets

Have all your study materials in one place.

Documents

Upload unlimited documents and save them online.

Study Analytics

Identify your study strength and weaknesses.

Weekly Goals

Set individual study goals and earn points reaching them.

Smart Reminders

Stop procrastinating with our study reminders.

Rewards

Earn points, unlock badges and level up while studying.

Magic Marker

Create flashcards in notes completely automatically.

Smart Formatting

Create the most beautiful study materials using our templates.

Sign up to highlight and take notes. It’s 100% free.

Get FREE ACCESS to all of our study material, tailor-made!

Over 10 million students from across the world are already learning smarter.

Get Started for Free
Illustration