With the thousands of advertisements millennials see each day, it takes a lot to break through the digital advertisement clutter. Whether it’s pop ups for in-app purchases, a fifteen second movie trailer on YouTube, Facebook’s targeted marketing sidebars, or daily emails from retail stores, it’s easy to spot an ad immediately and millennials have learned to ignore it on an almost subconscious level.
It’s no surprise that traditional marketing strategies, meaning those coming straight from company to consumers, are fading out. More companies are jumping on board to Influencer Marketing to attract younger markets to their products. This form of marketing is when companies essentially send free product or compensation to well- known social media personalities. With the strong relationship to their followers and perceived expertise on a certain topic, these “Influencers” are perfect brand ambassadors to share their opinions on a brand or product directly to the company’s target audience without being shut out as an advertisement.
Why are these ads so valuable to companies? Hearing your favorite YouTube beauty and fashion guru’s, like Laura Lee, Jefree Star, or Grav3yardgirl with over 2.2, 3.5, and 7.5 million subscribers, rave about new products resonates much more than a 10 second ad with a celebrity wearing or using an item. The earned trust followers have to their “Influencer” on their topic makes the advertisement come off more as an honest review like a casual talk with friends rather than coming off as an advertisement.
Another way companies are increasing their return on investment of Influence Marketing is by including coupon codes along with reviews. With the ease of online shopping, millennials are much more driven to impulse shop and now have an incentive to buy. After seeing the review, a discount on purchase will drive more traffic because the offer feels exclusive. This extra engagement with their audience is what makes Influencer Marketing so valuable to companies.
According to Linqia’s The State of Influencer Marketing Survey with 170 retailers, 94% of found influencer marketing to be very effective. As a result, influencer marketing budgets are set to double in 2017 across the board.
Is this a trend we will be seeing for the long haul, or is it just a social media fad? Only time will tell, but as for now Influencer Marketing is what’s #trending