We are going through a revolutionary shift. First, there was the industrial revolution then there was the mass media revolution and now we are in the digital revolution. If you think about it, advertising, stayed relatively the same for about 50 years until the internet and social media came and disrupted it. Now advertisers are spending their money on platforms like YouTube and Instagram and Facebook, and on top of these platforms, we have something new in the market known as influencers. Now you might be wondering what an influencer is.
Simply put an influencer is someone like you and me except where they choose to consistently post about products online. This can be on Instagram; or YouTube and it can be in the niche of their choice. It can be beauty tutorials or comedy skits or vlogs. By doing this they have amassed a huge following and have become influencers. Currently, influencer marketing is a 14.24-billion-dollar industry and it’s projected to be a 24.1-billion-dollar industry by 2025. The brands are realizing that influencer marketing is a highly effective way to market new products to millennials.
Influencers apply to anyone trying to get attention on anything. Over the past five years, we can see businesses virtually transform especially in the eCommerce space thanks to influencers. 70% of purchase decisions by millennials are made from a peer recommendation. 60% of in-store purchase decisions are influenced by something someone has seen on a social media post or a blog post. And why do you think that is?
On average, millennials are spending nine hours on social media daily. So often what is happening Is these YouTubers they’re watching are starting to become their friends more so than their real-life friends. So, they also want to hop in on the trends and try out the latest products that their favorite YouTubers are playing with.
Another extremely popular question asked is what the difference between a celebrity and an influencer is. This is a one-word answer question. And that one word is RELATABILTY. People love how these influencers are uncensored, they’re unscripted. If you look at the data, only three percent of consumers are influenced by celebrity endorsement when it comes to their product purchase decisions. This makes a lot of sense because when we look at Jennifer Aniston on the TV and she’s promoting a product, we often get intimidated by the untouchable differences created by the society between an actor and common people. Customers don’t often buy what the celebrities are trying to sell. They want to see people like them selling the product and how that product has made a change in their lives.
Now not only is influencer marketing applicable to brands, but it is also applicable to people. Ask any millennial if they’re trying to build up their Instagram right now and their answer will probably be Yes! That’s not something to be looked down on. If anything, they know more than anybody about building a personal brand today is more important than ever when it comes to things like accessibility, opportunities, and job employment.
Personal brands are important, and part of that puzzle piece is growing your audience. So how do you do it? One way you can is to utilize an influencer’s reach. Say that you have a vegan Instagram page that you’d like to grow. You could go and pay a bigger influencer in your niche to shout you out and these shoutouts are how a lot of people are growing quickly.
Lastly, we must talk about money. There is this stigma attached to influencers that they are these young millionaires, and they get paid too much. But research has shown that ninety-nine percent do not fall in this category. A lot of them are just trying to sustain making content as their full-time job. We want you to keep in mind that not only did the advertising industry change, but the entertainment industry also changed as well. Advertisers had bigger budgets to make commercials and even on the entertainment industry front there were bigger grants, there were bigger bursaries, and there was a much bigger support system for the artists. So now when you look at an influencer who’s doing a sponsored post, they’re essentially getting two for one for a fraction of the price.
So relatively these creators are not getting paid much. They are on-camera talent, they are directing, they are producing, they’re fighting, they are doing their make-up and they are editing. They are the admin, and they are their distribution. So, if you see a sponsored post by a creator, don’t roll your eyes. If this is anything, this is the time you should go and interact and show your support. It means a lot to the creator. What you’re doing is helping these creative people build their lives so they can make more content for your enjoyment.