What Retailers Should Know About Influencer Marketing
Advertising took a drastic shift in a new direction when social media became a prevalent form of communicating and sharing ideas. The concept of the influencer put marketing in the hands of everyday users who amassed a trusting following. Based on 2023 influencer marketing reports, influencer advertising is as important as ever, with the market size jumping $2.2 billion from 2022 to 2023. This figure is expected to grow even more from 2023 to 2025, more than doubling in size since 2020.
It’s getting more and more difficult for brands to sidestep influencer marketing, and it’s crucial now more than ever for retailers to understand the ins and outs of this unique form of advertising. There's a lot to focus on, but some key points will help highlight the necessity of influencers and user-generated content (UGC).
The Platforms
Influencers use two core platforms because of their layouts, content and algorithms. According to Collabstr, more than three-quarters of the 50,000 influencers analyzed for the study offer collaborations and marketing services via Instagram. Just over half are on TikTok, using the more organic algorithm to push content directly to their audience.
The two social media platforms are favored because they're completely based on visuals. Blocks of text are uncommon on Instagram and TikTok, and both make it easier to interact and engage with users through video.
TikTok has a friendlier and more intuitive algorithm that personalizes the process by pushing content based on the user’s perceived preferences and likes. Brands can use this to their benefit by working with influencers that can personalize ads to an appropriate audience.
User-Generated Content is Changing the Landscape
The future of advertising is one where ads look a lot less like ads, and marketing consists of one TikTok influencer sharing their experiences with a brand or product. For brands, UGC is the simplest and least hands-on form of marketing, and though only 26 percent of influencers provide UGC, that number has doubled from just 13 percent in 2021.
The catch to UGC is that the influencers and users take the reins and can post anything from an unscripted unboxing to a full review. This forces brands to put their best product forward, as they won’t be dictating what the audience sees.
Influencers are changing the very concept of marketing. Brands must embrace what's bound to be a user-driven future for advertising.
Kyle Dulay is the co-founder of Collabstr, a platform allowing brands to find and hire influencers for various social media sites.
Kyle Dulay is the Co-Founder of Collabstr, a platform allowing brands to find and hire influencers for various social media sites.
