Despite referencing influencer marketing in a lot of blog posts, we still receive a lot of questions on the topic. In order to understand the power of this marketing approach, one must understand the concept. An influencer is a person (or entity) that has built a significant and positive presence online. Through the use of social media, blogging, websites and other channels a dedicated and active audience has been established who are not just prone to interact with the influencer’s posts, but who crave that content.
Even if you aren’t an influencer in your own right, you can benefit from the success of those who are. This is the concept behind influencer marketing.
By forming a connection – a sort of partnership – with existing influencers, a company can enjoy an improved reputation and credibility in the online environment. There will be a larger audience consuming the content sent out, and those people will generally be more willing to interact with the posts. In fact, the connection with an influencer will often lead to an increase in user generated content. All of this means the opportunity to generate more leads, valuable leads. In fact, according to recent research, a company can expect to make as much as $7 per $1 spent on influencer marketing. But, where does that monetary investment initially go?
Of course, an influencer isn’t likely to take your company on in a charitable fashion. This is a two-way street, and the influencer will expect to receive some form of compensation for the efforts. This is not always a direct financial boost, but rather may be offered in the form of free products or services, freebies for their followers (which can be used as the prizes in hosted giveaways and competitions), or a sponsorship. In this way, everyone benefits.