In recent years, influencer marketing has played a significant role in internet advertising. Here are some key points about the role of influencer marketing in digital marketing:
1. Change in Marketing Spend: Influencer marketing has led to a change in marketing spend for many companies. Funds that were once allocated for paid ads or print advertising have been reallocated for digital promotions. B2B companies, in particular, have increased their social spending for products and services .
2. Higher Return on Investment (ROI): Influencer marketing has shown a higher return on investment compared to traditional marketing spend. A case study by Nielsen Catalina Solutions found that B2B influencer marketing had an ROI 11 times higher than traditional marketing spend .
3. Authentic and Engaging Content: Influencers create native ads that tend to resonate better with consumers, resulting in higher engagement and conversion rates. Influencer content is often perceived as more authentic, which can enhance advertising performance and improve overall conversion .
4. Reach and Targeting: Influencers have a strong following on social media platforms, allowing brands to reach a wider audience. Additionally, influencers can help brands target specific demographics or niche markets by leveraging their expertise and influence in a particular industry.
5. Trust and Credibility: Influencers have built trust and credibility with their followers, making their recommendations and endorsements more influential. Consumers often perceive influencer content as more trustworthy compared to traditional advertisements.
6. Amplification and Performance Marketing: Influencer content can be amplified through performance marketing strategies. Analysts can identify the best-performing influencer content and create paid ads to target a specific audience, resulting in higher engagement and conversion rates .
7. Brand Awareness and Exposure: Collaborating with influencers can help increase brand awareness and exposure. When influencers promote a brand or product, their followers become aware of it, potentially leading to increased brand recognition and customer acquisition.
8. Reaching New Audiences: Influencer marketing is effective in reaching new audiences. It works well for both B2B and B2C companies that want to expand their reach and connect with new potential customers.