What is Influencer Marketing & How do they earn money?

Gone are the days when we used to have a few Superstars and famous people. Today we have social media, and that has given the world more famous people (aka influencers) than ever. Social media has actually democratized the internet and given a chance to become famous to people sitting in the remotest corners of the world. And the best part is that no one influencer is same as the other and each has a different niche. This gives advertisers huge scope for advertising, which is popularly known as influencer marketing. Read further to learn more about this.

what is influencer marketing?

Most of us use social media these days and do have at least one favourite influencer. Do you remember when they were talking about some branded products the last time? What you saw, my friend, was an example of influencer marketing.

Let us explain this to you in words. Simply put, Influencer Marketing is marketing through influencers. To further elaborate, when some kind of product or service of some brand is endorsed by influencers in order to gain more customers or clients, it is called Influencer Marketing. This kind of marketing is an advanced version of what we used to see on our televisions when we saw Hrithik Roshan say ‘Darr Ke Aage Jeet Hai’ for Mountain Dew. Remember that ad? That was a celebrity endorsement.

Influencer Marketing Meaning

The term ‘Influencer Marketing’ comprises two words. Let’s quickly brush up on our basics by understanding them. Then, it will become easy for us to understand what Influencer Marketing means.

1. Who is an influencer?

An influencer is basically a person who can influence people. It can be anyone with a substantial audience or following upon whom he/she has great influence. They have such an audience only because they could influence like-minded individuals at the first place. That becomes their niche. And that following is generally quite loyal and listen to what the influencer has to say.

2. What is marketing?

Marketing is the act of promoting products and services but running product-specific campaigns. The aim is to bring the product or service to the notice of people so that they go and check those products out and potentially become loyal customers.

When marketing meets the field of influencers it becomes influencer marketing. Brands these days understand that influencers come from among the common masses and therefore are more relatable for the public. Hence, they try to leverage this opportunity.

How is Influencer Marketing better than other kinds of Marketing?

Whether Influencer Marketing is the best kind of Marketing is a debatable matter. We would really have to dive deep into the details and statistics for that. But without having to put ourselves through so much of hard work, we can surely say that Influencer Marketing does have some advantages which make it an attractive option for marketing agencies.

Following are the biggest advantages of Influencer Marketing:

High Chance of Favorable Results

Most influencers may be small with a small following but they have high engagement. High engagement basically means that the followers are actively involved in whatever the influencer does and says. They actively like, share and comment on videos. This means that their followers highly trust them.  Therefore, there is a very high chance that when a brand collaborates with them, the brand achieves greater trust too. Hence, they receive more customers.

Easy Reach to the Masses

Most of the influencers have risen from among the common masses. This makes the common man relate more to them than any other movie star. The followers generally look up to these influencers for guidance in some way or the other. So, when a brand collaborates with such influencers, that brand gets direct access to all the common followers. This reach helps brands reach the remotest of villages.

Does this mean that Influencer Marketing is a quick way of gaining clients?

No, it does not. Definitely, it is a very profitable game and has more chances of success than failure. However, there is no concept of overnight success in it. Influencer marketing requires a lot of patience. Brands do collaborate with influencers to make content on their products. But the process doesn’t end there. As the content gets more popular, slowly trust starts to build with the brand, which may take time. We know that trust-building is a long process.

It may also happen that the influencer chosen might have a large audience, but the engagement may not be that great. Hence, marketing agencies have to do thorough research and devote substantial time to the planning process. After all, they would want to save as much money and time as possible.

How do the Brands earn?

Brands earn in more than just monetary terms. Their reach widens, their customer base increases, and their goodwill also increases as people start trusting them. The Return on Investment is mostly calculable in Influencer Marketing. This becomes possible through keeping track of the engagement that the influencer’s content receives. If the engagement is high, chances are that the returns would be high for the brand too. Therefore, it is safe to say that Brands take a calculated risk which more often than not turns in their favour.

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So, how do Influencers earn through Influencer Marketing?

Brands generally do thorough research and come in contact with the influencers who make content in their respective niches. They have the option of collaborating with a range of influencers, which include mega influencers, macro influencers, micro-influencers and nano influencers. Mega Influencers have a following of more than one million, and nano influencers have a following of less than ten thousand. All have their own advantages and disadvantages.

Once the deal has been struck, the influencer is paid an amount per post. This amount may vary according to the authority of the influencer but is generally a good amount, which may be as high as six figures or even more for celebrities. And if the influencer provides some links in the caption and people purchase certain products from there, the influencer earns a certain cut on every transaction. However, earning through links is more a part of Affiliate Marketing.

Should the intentions of Influencers be questioned?

Simply because an influencer enters into a brand deal and makes content on it to promote the brand’s products doesn’t make that influencer selfish. For most of them, these brand deals become an extra source of income, which only helps them to make more content that their audience enjoys. After all, their industry is growing by the day, and they need to have the best equipment and staff to make great content. Labelling them selfish is therefore not justified. However, it can be questionable if they actually indulge in illegal activities.

Conclusion

Influencer Marketing is on the rise these days and rightly so. It combines the power of the reach of influencers and the marketing strategy of brands. With more and more people becoming famous on social media these days, the scope of influencer marketing is simply increasing. As the number of influencers increases, so will the opportunities to tap untapped markets. No wonder influencer marketing is one of the most preferred marketing techniques these days.

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