How Social Media Has Created a New Sect of Marketers

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How social media has created a new sect of marketers

Table of Contents 01 Overview 02 03 04 05 Technology Enablers 06 07 Conclusion

OVERVIEW

were unheard of 60 years back. With the advent of the Internet, and more prominently, smartphones, we have newer roles of app developers and Big Data analysts. We even have Zumba and beach-body instructors to help us attain the perfect body type; these job titles did not exist a decade ago.

If we observe the trend carefully, it will become evident that newer job titles spring up either due to technological advancements or lifestyle changes. The current decade has been dominated by social media. Facebook has over 1,900 million active users, Instagram has over 600 million and it added over 100 million new users in the last six months (see image below). It is thus obvious that new job titles have cropped up to accommodate this change in technology and lifestyle. People have started to hire social media strategists, social media evangelists, and social media marketers to take care of their social media engagements. One role has particularly become popular among the millennials—that of the ‘Social Media

have they become so popular?

Source: https://www.statista.com/statistics/272014/global-social-networks-ranked-by-number-of-users/

Although Social Media Influencer is the latest Social media and publishing platforms buzzword, ‘Influencer Marketing’ has been have made it extremely easy for influencers around since the first advertisements were to curate their own content, publish it, broadcast. Brands and advertisers have been and build a relevant follower base. They engaging with celebrities, sports personnel, can create quality videos and other visual and leaders to endorse their products. content on mobile phones, post about their However, with time, consumers have experiences on their blogs, and share that realized that the opinion of these celebrities content instantly with millions on social cannot be termed credible because they media. This has given rise to the term: endorse products for huge financial gains. social media influencers. Consumers now look up to their peers and favorites for their purchase decisions; they Importance of Social Media Influencers want to wear exactly what their favorites are wearing; travel in the same way their Online content and social conversations favorites travel; and so on. It is evident from have the maximum impact on purchase this generation’s buying decisions that they decisions. While product information do not blindly trust the advertisers’ claims and brand-crafted messaging is valuable, or endorsements. They first check out consumers want information that comes from the reviews, comments, and social media like-minded people. Consumers trust the experience more than the verbal information TYPES OF INFLUENCERS imparted by advertisements. And it is not just common people who look up to them 1m+ for their purchase decisions; brands too have followers realized the importance of having influencers onboard to endorse their brands. Influencers 500K-1m followers have some distinct advantages that brands do not; for instance, large communities of followers, trust from consumers, authentic personal experience, and presence on a 100K-500k variety of social networks. They are effective followers at starting, sharing, and spreading online 1K-100k conversations, which are incredibly valuable followers to brands. Brands have been piggy-backing Celebrities Marco- Middle- Mirco- on this value addition and follower base by Influencers Influencers* Influencers involving influencers to launch products, create digital content, endorse brands, and engagement for thatproduct and only then sometimes even for manage crises. do they make a purchase decision. These peers and favorites are common people just like you and me. These are the people with a strong digital presence and opinionated voice, and are viewed as reliable sources. They have a high influence on their followers and are thus called influencers.

© 2019. Cybage Software Pvt. Ltd. All rights reserved. 03 New audiences and brand endorsements The Art of Influence are not the only reasons why advertisers are turning to influencers for help. The Advertisers are catching on quickly and top reason companies use social media beginning to seek out such tools and influencers is: the rise in the usage of technologies that enable them to identify ad blocking and ad avoidance software. key influencers in their industries and form Advertisers and brands are looking for trusted relationships that help them stay the best ways to reach audiences by close to their consumers. circumventing ad blocking. In such cases, So, how do influencers do it? marketing through social media influencers Advertisers and influencers can work in presents a viable channel and strategy. multiple relationships. One of them is Additionally, using influencers can also through sponsored posts. Advertisers pay aid SEO efforts, with user generated posts influencers fees or send them free products. accounting for 25% of search results (Erik Influencers can pose with these free Qualman, The Social Media Revolution) and products or click multiple images of them, ultimately every social like, comment, and write about them on their social media share being targetable and trackable. accounts, resulting in sponsored posts. In Before engaging influencers with their case of travel, sponsorships can include brands and products, advertisers need to staying at a plush hotel or experiencing an understand and analyze the following: airline carrier’s hospitality or enjoying a meal at a restaurant, all for free. Influencers can • Relevance: Is the influencer that is sharing then talk about their experiences, publicizing content and developing a follower base, the brand or the product. relevant to your business and the particular The social-media analytics firm market segment that you want to target? Statistics: Captiv8 estimates that big brands are • Reach: What is the number of people spending a collective $255 million per month you could potentially reach through the for sponsored posts on Instagram alone. influencer’s follower base that would bring Captiv8 says Instagram influencers who have value to the business? more than 7 million followers command an average rate of more than $150,000 per • Resonance: What is the potential level of sponsored post. engagement the influencer can create with an audience that’s valuable and relevant to Although the sponsored posts idea may your brand? sound very cool and stress-free, influencers have to go to great lengths to make sure A popular influencer management platform, their feeds feature only the most polished Traackr, has developed a framework that can aspirational imagery. They have to make help an advertiser to do the following: sure their postures are right; they have to • Define the audience constantly scout locations to make sure • Discover the right influencers the outfit blends well with the scenery, • Constantly monitor for opportunities and the light is perfect for clicking the • Take action and engage best photographs. Influencers also have • Measure accurate results to be extra careful that they do not clutter their followers’ wall with repetitive and (A Framework for Influencer Marketing, irrelevant information. If not done the right Traackr & Lewis PR). way, such posts can alienate their readers and followers, destroying the influencers’ credibility.

© 2019. Cybage Software Pvt. Ltd. All rights reserved. 04 The second approach that influencers can One such affiliate network that is very use to monetize their work is by joining an popular in the fashion world is rewardStyle’s affiliate network that will allow them to earn Liketoknow.It. It enables shoppers to on each click that they drive to the retailers’ take screenshots on Instagram, Pinterest, websites or derive commissions on the sales Snapchat, and purchase the products they facilitate on the retailers’ websites. featured in the screenshots and likes; all The common revenue models followed in at one place. Currently, it has a network affiliate networks are CPC (Cost per Click), of more than 12,000 influencers and over CPM (Cost per mille impressions), CPA 4,000 retailers. Since 2014, shoppers have (Cost per Action, that is, if the product is purchased more than $250 million in purchased), and CPL (Cost per Lead). merchandise, enabling influencers to earn thousands of dollars.

Technology enablers

Following this current trend of Influencer popular affiliate platforms are: Marketing, many companies have either built platforms consolidating the inventory • ShareASale from various vendors or exposed their • Commission Junction individual inventories for the influencer • Rakuten LinkShare to directly share on social media and/or • ShopStyle on their blogs (travelogues, vlogs, fashion • RewardStyle blogs, among others). Some of the most • Google Affiliate Network

© 2019. Cybage Software Pvt. Ltd. All rights reserved. 05 The aforementioned list contains networks and social media; and correctly calculate that consolidate data from various vendors the commissions for influencers as well as and make this data accessible to the providers of inventory. Accurate calculation influencers. Also figuring in this list are of providers’ commissions helps affiliate individual publishers who have initiated an networks to cross-verify the analytics data affiliate program for influencers in which the with theirs and ascertain whether they are latter can directly register themselves and getting paid correctly for all the conversions earn commissions. (and other revenue models decided between The following sites are famous for their networks and providers). commission programs: Legalizing influencer marketing • Booking.com • TripAdvisor Various regulatory bodies are taking note • Amazon • eBay of the increasing activities of influencers • Agoda in digital campaigns, and initiating action • Target against brands that handle influencer marketing incorrectly. In the past, the These platforms work in the following Federal Trade Commission (FTC) in the USA manner: and the Advertising Standards Authority (ASA) in the UK have stepped in and clarified • Influencers can sign up or register as the boundaries of influencer marketing. affiliates. For the US market, the FTC published • Each affiliate is assigned a unique ID post Endorsement Guidelines, which in registration. essence, state that a failure to disclose • Influencers can embed a widget code on the commercial relationships between the website page. companies and individuals who endorse • Commission rates are defined for different them is deceptive. revenue models. These models could be clicks, impressions, conversions, leads, In the UK, the Committee of Advertising among others, depending on the business Practice Code was set up to lay down rules of the providers. for vloggers and brands. The rules outline • Through analytics tools (such as Google that viewers must be made aware of the Analytics) different parameters are sponsorship prior to viewing the content. captured and commissions are calculated As a general rule, brands leveraging for the affiliates. This is done for every influencers should follow the same affiliate based on their unique IDs. advertising rules that apply to offline • Some platforms also allow influencers to share the products directly on social campaigns. Additionally, the tax liabilities media. This feature is important for associated with the offering of free products affiliates who do not have a dedicated to influencers should be considered along website; however, they engage their with the international nature of online followers on social media channels. content—what might be unregulated in one country could lead to serious issues in The role of technology enablers is to build another. Ultimately, influencers should be a platform that can make the inventory monitored by the brands that they endorse, available to the influencers; bring about a and brands should follow up on erroneous seamless integration with analytics tools behavior on a regular basis.

This trend is not limited to mainstream and skipping a heartbeat. They know their popular markets such as fashion, athletics, every post with care.

In the near future, such collaborations mindfulness and spirituality. In fact, calling

tip of an iceberg. What’s truly happening is marketing is the beginning, then what’s coming next is a shift from social media to a broader shift, as more and more people social marketplaces. For a generation that are discovering the art of personal branding. reads before traveling, researches before eating, asks before buying, social media campaigns into their unique stories, without

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