Some of the world’s top brands have achieved tremendous success with a marketing strategy known as ‘influencer marketing.’
Influencer marketing is a form of marketing, where brands pay individuals with large followings on social media to promote their products or services in public. This is different from celebrity endorsements in that influencers mention products in casual ways, and they work with brands to co-create content that will appear on their social media sites.
Brands like Fashion Nova realize the importance of connecting with a target audience by collaborating with influential people with large followings on social media. These influencers’ followers will, in turn, like and share messages with their own followers and friends, in a trickle-down effect. Audiences (especially younger audiences) deem these types of message as more ‘authentic’ than traditional marketing messages.
Fashion Nova boasts approximately 4,000 social media influencers (including TV personality Kylie Jenner), which include fashion and lifestyle bloggers who have earned the trust of many thousands or hundreds of thousands of followers. Most of Fashion Nova’s marketing campaigns focus on Instagram.
This movement away from traditional advertising towards influencer marketing is resonating with brands across the globe. A McKinsey study found that “marketing-induced consumer-to-consumer word of mouth generates more than twice the sales of paid advertising.” According to eMarketer, marketers spent $570 million globally on influencer marketing on Instagram in 2016.
It is not just fashion brands that utilize influencer marketing; health, fitness, travel, lifestyle, food, tech and entertainment are among the industries that are collaborating with influencers to achieve their marketing goals.
While influencer marketing has taken off for major brands, measurement and tracking have been a challenge. Seventy-eight per cent of marketers surveyed admitted that determining a return on investment has been an ongoing struggle with this type of marketing.
To measure the effectiveness of an influencer marketing campaign, brands need to clearly
Identify their goals. Sales are an important metric, but other metrics such as overall visibility (likes and shares), website visits (Google Analytics) positive engagement, brand awareness, and brand relevance should be included in the ROI mix.
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