Influencer Marketing Is a Good Investment

People trust other people more than advertising or promotions, which makes influencer marketing initiatives a good investment with long-term dividends.

People trust other people more than advertising or promotions, which makes influencer marketing initiatives a good investment with long-term dividends.

Influencer marketing is assuming a similar mission-critical role as influentials in market research.

Influentials are the people other people turn to for good advice, whether it’s what camera to buy or who to hire to remodel your kitchen. In research, influentials are a valuable resource because they are typically well-informed and willing to share what they know. They provide researchers with a clear window to see the wonders and warts of a product, service or idea.

Market influencers are the people others trust for advice on a buying decision. You don’t have to be a celebrity to be an influencer. In fact, most influencers today are bloggers or vloggers who offer views and advice in concentrated areas, whether it’s gluten-free food or smart parenting tips.

There is an analog to market influencers in the crisis communications space – third-party validation. Claims that an environmental spill has been cleaned up or that a financial practice has been corrected carry more weight if an independent third party verifies the claim. That party is essentially a “market influencer.”

The underlying truth is that people are prone to trust other people more than advertising or promotional pitches. A corollary is that brand managers, marketers and public affairs professionals often overlook the prowess of influencer marketing initiatives, especially ones that can ignite with a powerful employee advocacy campaign.

Jay Baer of Convince & Convert says influencer marketing is shockingly more successful than digital advertising, and he undertook a study to prove his point. Baer worked with a digital marketing firm and a research company that specializes in food to persuade 258 fitness and food influencers to create content related to Silk Almond Milk and its Meatless Monday initiative. The content was allowed to pulse out organically on social media without any paid promotion.

“Households exposed to influencer marketing purchased 10 percent more Silk products than the control group,” Baer reported. The return on investment after 12 months for the influencer marketing outreach was 11 times greater than the cost of banner ads, he added.

There are extended values as well, Baer explains. Influencer marketing content has a shelf life that keeps generating impressions. Brands can repurpose the content, which becomes in effect testimonials from trusted sources. And, the cost to produce the content is borne by the influencer.

‘We’ve known for years that online influencers can generate net-new impressions, clicks and even e-commerce sales,” Baer says. “But this new study demonstrates that online influencer marketing yields offline purchase shifts, too.”