The Amazing Power of Influencer Marketing

Influencer marketing is more than just a passing fad. Brands have aligned themselves with popular social media influencers to promote their products and increase their sales, and they will continue to do so. In case you weren’t convinced of influencer marketing’s power, consider these impressive statistics:

• Google searches pertaining to influencer marketing increased 325% in 2017. This officially makes it the fastest increasing marketing tool for the year.
• Around two-thirds of marketers surveyed reported that they planned on increasing their budgets for influencer marketing in 2018. The average budget for influencer marketing is expected to reach around $50,000.
• Influencer marketing presents a significant return on investment. In fact, for every dollar spent on influencer marketing, a business can expect to see a whopping $7.65.

Why Does Influencer Marketing Work?

The numbers here appear to speak for themselves, but why influencer marketing is so successful remains a question. The answer lies in basic psychology. Studies show that peer endorsers of products instill a sense of credibility. Trustworthiness, attractiveness, similarity to the buyer, and perceived expertise influencing this credibility.

A large number of followers, “likes,” and shares provides a form of social proof that bolsters an influencer’s perceived expertise. Combined with a shared interest, a peer influencer can be more trustworthy, effective, and attainable than a celebrity endorser. Simply, a peer influencer shows a prospective buyer: “It works for me, so it can work for you, too.”

Relatability is one of the most important aspects of social media and influencer marketing. Despite having a large social media following, prospective buyers are far more likely to perceive influencers as practical, down-to-earth people. Far from merely promoting products, influencers post about their everyday lives and share common interests with their audience.

This idea is not unprecedented – it ties nicely in with social identity theory, which posits that people form part of their identities by aligning themselves with their membership to a certain group. As such, influencers are a highly trusted source for opinions and recommendations – which is why influencer marketing is such a powerful tool that will continue to provide marketers with a significant return on investment in the years to come.

Download my free guide on 5 Things to Do Before Hiring an Influencer.

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Sources:

Simply Psychology – Social Identity Theory
Shane Barker – Influencer Marketing Statistics
Influencer Marketing – What is Influencer Marketing