Influencer marketing has taken the world of marketing by storm in recent years. With social media influencers penetrating the market, businesses are now partnering with them to reach a wider audience. The trend is only set to grow, as more companies are exploring the different ways they can leverage influencers to gain brand recognition and promote their products. As with any marketing strategy, there are pros and cons to influencer marketing. In this article, we will take a closer look at the benefits and drawbacks of influencer marketing and assess its potential impact on business.
Benefits of Influencer Marketing
Increased Brand Awareness
Influencer marketing leverages the popularity of social media influencers, tapping into their large following to get a brand or product seen by a wider audience. Influencer marketing can increase brand awareness and generate buzz around a product, service or brand over time.
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Cost-effective
Influencer marketing is a more cost-effective form of advertising compared to traditional media such as TV and billboards. While influencer marketing does not come cheap, working with an influencer is often cheaper than creating ads and deploying them on traditional media channels.
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Building Trust and Credibility
Influencers often use their platform to share a personal experience of a product or service. As these recommendations are not seen as a sales pitch, audiences are more likely to trust the influencer and their opinion, leading to more credible messaging.
Engaging with a Niche Audience
Influencers tend to have a niche audience that’s interested in particular products, services or topics. Working with an influencer in a niche market can help brands reach a highly targeted and engaged audience that’s already interested in the product or service.
Drawbacks of Influencer Marketing
Unreliable Data
Influencer marketing is still a relatively new marketing strategy, and there is limited data on its effectiveness and success. Influencer marketing platforms often provide performance metrics, but these may not always provide a true reflection of the impact of an influencer marketing campaign.
Lack of Authenticity
There have been instances where influencers worked with companies for product placements, leading to their followers questioning their authenticity. Influencers have a responsibility to maintain their integrity and ensure their sponsorships are transparent.
Collaboration Risks
Partnering with influencers can be risky if not done properly. Influencers may fail to meet the agreed-upon requirements, miss deadlines or show a lack of engagement. These risks can affect the reputation of the company and lead to a bad return on investment.
Limited Control
Influencers are responsible for creating their content and messaging. This means businesses have limited control over what the influencer says in their post, the quality of the content and how their product or service is portrayed.
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Examples of Successful and Unsuccessful Influencer Marketing Campaigns
One of the best examples of influencer marketing is the campaign run by Daniel Wellington. The watch brand partnered with micro and macro-influencers on Instagram and paid them in exchange for product placement and promo codes. The result was increased brand awareness and a 20% increase in revenue for the company.
On the other hand, the Fyre Festival fiasco is an example of a failed influencer marketing campaign. It was a music festival promoted by high-profile influencers who posted luxurious photos of the event that turned out to be false. This eventually led to legal action against the organisers and failure of the festival itself.
Conclusion
Influencer marketing can be as effective as it can be risky. To derive benefits from an influencer marketing campaign, brands must take the time to vet and choose influencers carefully, develop a strategy that aligns with their business goals, agree on clear deliverables, and monitor the performance of the campaign. By considering the benefits and drawbacks of influencer marketing, businesses can make an informed decision on whether to include it as part of their marketing strategy.
