social media Influencer Marketing
Baby Ariel (@BabyAriel) has over 36 million followers on TikTok (launched in 2015), earning approximately $ 135,000 per post.

PewDiePie has over 100 million followers and earns over $ 15 million per year- that’s more than the average salary of starting NBA players.

Why and how are "influencers" able to make such a large income doing something that appears so simple as just posting about brands?
It works. On the opposite side of the exchange, brands are spending hundreds of millions of dollars a year on influencer marketing. For every $ 1 spent on influencer marketing, businesses make back $ 5.20.

Influencer marketing relies on the authentic voices of influencers and content creators that have carefully built relationships with their followers. An influencer marketing agency makes use of its existing and new relationships with influencers and helps ensure that every influencer marketing dollar spent goes towards the customer’s key objectives.

Often, the special option that brands want isn’t access to their target audience, but the ability to capture their attention the same way influencers can.
The Meaning Behind Influencer Marketing
Influencer marketing is a type of marketing that relies deeply on individuals (figures, accounts, etc.) to get your message across to specific audiences.

Rather than sending marketing messages directly to a general group of people, you would use influencers to send the word for you. Influencers have built quasi-personal relationships with their followers and can often achieve terrific results for brands. From the audience’s viewpoint, every post, regardless of whether it is sponsored or not, shows up as a support or validation of a specific product.

In particular, let’s say we’re starting an energy drink brand called Nado. Our target audience is active, young and fit people in LA, California. In theory, we could launch a Facebook campaign targeting this set of demographics, but we might be able to get more for our money with influencer marketing.

From our extensive analysis, we found out that Los Angeles, more so than most major cities in the United States, tends to gravitate towards the glamor, fitness and fame. We also learn that there are hundreds of LA-based influencers with followings over 1 million and thousands with followings between 100k to 1m.

So, we decided to work with five of the top influencers in the city, offering them $ 1k each to make an Instagram post drinking Nado energy drink, tagging our social channels, and offering them a personalized 20% off code to share with their audience.

Boom- the $ 5,000 we spent got us 150,000 new followers and sold $ 12,500 worth of Nado. Not only were we able to realize a healthy 2.5x RoAS, but we also boosted our own audience for pennies ($ 0.033 per follower.)

Influencer marketing is often intertwined with digital marketing strategies, like social media marketing and content marketing. To get the most out of influencer marketing, you need to make sure your brand’s social profiles are in the lead and your influencers need to have some content to provide (often created by the influencers themselves).
Influencer Marketing Way of Thinking
It’s easy to get stuck in one of the many digital marketing rabbit holes, and it’s always important to remember this: most marketing channels are only effective because they adhere to general psychological principles.

The only thing new about influencer marketing is channel distribution. Our parents and grandparents remember watching a commercial on one of a bunch of channels in which a celebrity endorses a product they have almost no logical connection to.

The uprise of social media has taken the centralized attention pools and decentralized them over thousands of accounts. Today, instead of watching one of a few TV channels, consumers are scrolling through Instagram, Facebook and Twitter. They can follow their favorite celebrities on those platforms and effortlessly find new people to follow.

There is very little gap between influencers and their friends and followers, however, brands are often viewed as intruders on an otherwise intimate experience. Influencers accomplish three major feats for brands.
They serve as aggregators
Finding an influencer with a perfectly matching audience is like stumbling upon a gem. Many influencer accounts not only have hundreds of thousands or millions of followers, they also have built warm relationships with them.
They act as gatekeepers
Most influencers appreciate their relationship with their audience and run the risk of devaluing it by advertising a brand that means nothing to them.
They approve a product or brand: Just about 95% of consumers read local business reviews before making a purchase. In a sense, an influencer post serves as a highly credible review for a brand or product. "Well, if Mark Hyman says this olive oil is good, I might as well give it a try!"
The Future of Influencer Marketing
We see influencer marketing turning even more formalized in the near future.

With so much money investing into the influencer marketing industry, there’s no doubt that influencers are coming together to ensure the best possible rates in a highly competitive marketplace.

Influencers who work together start looking more like full-fledged media companies consisting of multiple decentralized but immensely popular and successful accounts. This can be anything from collaboration houses where several influencers join hands to make cameos and package influencer deals, to talent incubators where creators nurture new influencers, to full content studios that work with big brands such as Adidas and Audible.

Moreover, plenty of tools and third-party platforms are coming out to analyze performance and qualify audiences before massive marketing budgets get flushed down the drain. In particular, Dovetale is a platform to handle relationships with influencers and judge campaign success. Other tools help validate influencer followings and engagement, revealing whether an influencer’s following is real and not bots.

Any influencer has an exclusive following that responds to particular messages. A social media influencer agency aims to make the best use of influencers and accessible tools to get the most relevant and best-performing content in front of the right people, ultimately leading to more sales for their clients.

We see a world where working with influencers is available for every business. However, you can’t simply just contract a few influencers and expect amazing results. The reality is that many influencer followings can be fake, and sometimes the content created either doesn’t match your or your influencer’s brand, leading to wasted ad spend.

That’s why it’s crucial to work with an influencer marketing agency that already has vetted relationships established with influencers so that every dollar goes towards making sales with no waste at all.
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