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Understanding the effectiveness of influencer marketing in 2023

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Influencer marketing was once limited only to celebrities and a few dedicated bloggers. However, with the increased prevalence and proliferation of social media and social media stars, this once-niche arena has extended to micro and nano stars with a substantial social media presence. 

Understanding the inner workings of influencer marketing

To put it simply, influencer marketing is a relationship formed between a brand and an influencer. This transactional relationship requires influencers to promote the brand’s products or services through various popular social media channels, including Instagram and Tiktok.

It’s worth noting that this digital marketing strategy is very different from celebrity endorsement. Unlike celebrity endorsements, influencer marketing requires the brand identity to coincide with the influencer’s brand. This means, aside from having a loyal following, the influencer is also required to be a trusted figure within their niche community. Moreover, the influencer is also expected to possess in-depth knowledge or experience about their field, and by extension, the type of product or service they’re advertising.

The appeal: pros and cons

As with most digital marketing strategies, influencer marketing has its pros and cons. As a player in the gig economy, influencers operate independently to create their content and bolster their brand while integrating their advertising specifications into them. This means that the company has a smaller role to play. Businesses are only allowed to provide clear instructions and the set of deliverables, and have little to no control over the brand’s message or the overall creative. While this does translate to less control and influence on the company’s part, this framework promotes perceived authenticity – an attribute that attracts an increasingly large group of consumers who prefer ‘real and organic’.

The 2022 Adobe Trust Report reflected that over half of survey respondents valued personalised and authentic content in relation to building trust in a brand, and 70% even said their trust in a brand falls following a poor personalisation attempt. Unfortunately for brands, this fact also means that they can lose out on significant consumer prospects if they do not live up to customer expectations regarding authenticity and empathy. As such, engaging with an influencer naturally became the perfect middle ground.

The effectiveness of influencer marketing shouldn’t be understated. As Neal Schaffer writes, brands seem to enjoy 11 times more in terms of ROI when they incorporate influencers into their online marketing strategies. Note that these benefits aren’t limited to just e-commerce business either; brick and mortar businesses can enjoy them too.

Keeping up with the changing industry

The influencer marketing market is a lucrative industry – according to Statista, the global influencer marketing market was valued at US$16.4 billion in 2022. In order to get a share of this gigantic pie, companies in New Zealand need to keep abreast of the incoming trends that are set to transform the industry in 2022. For instance, looking at Statista’s revelations that Tiktok becoming the world’s most used social media platform, the emphasis on moving from text and images to audio and video content has been increasingly apparent. Diversity and representation are also becoming increasingly important.

Begin developing your business’s plans for incorporating influencers in your marketing tactics today! To reap more benefits from your influencer marketing campaigns, ensuring your products reach your consumers globally is key. Start by opening a DHL Express account and find out how you can plan a streamlined logistics strategy. Discover more business tips and resources online with DHL Express.