Influencer Marketing from 0 to 200$ million
Influencer marketing is one of the world’s fastest growing and most successful marketing methods. It is also a global multi-billion dollar industry that has proven to be a major contributing factor to companies and brands being able to grow and establish themselves much faster than was possible just a few years ago.
1. How does it work?
The methodology behind influencer marketing is based on human behavior to prefer recommendations from like-minded people over those we receive through traditional advertising. As a kind of digital word-of-mouth on social media, you could say.
At a basic level, it is possible to describe influencer marketing as “marketing on social media via influential people”, so-called influencers. Thanks to these people’s ability to build strong bonds with their followers, most people have an enormous influence, which makes this a golden context for your brand to be seen. By collaborating with credible people that your target group actively follows and listens to, can you reach out with your message to the right people in an efficient and accurate way.
Influencer marketing as a channel is used today for several different purposes, such as strengthening brand awareness or driving sales. It can also be about getting into new markets with the help of influencers or reaching new target groups. Another important area of use is to get high-quality content, so-called content, which is created by influencers, for your specific target group and for social media.
Influencer marketing collaborations can take place on several different social platforms, for example on Instagram, YouTube, TikTok or personal blogs. Regardless of the channel, it is important to work long-term to build credibility with the target group. In the same way that we rarely remember an ad that we have seen once in a newspaper, we will not remember a brand if we only see it once in an influencer.
2. From 0 to 200$ million
When the 26-year-old, Filip Tsyander, launched his watch company, Daniel Wellington, in 2011, he did not market his company in the same way as everyone else. Instead of getting his products approved by high-profile celebrities, Tsyander decided to exploit the potential of social media influencers.
He gave away DW watches to select influencers and encouraged them to share a picture of the product on their social media profiles along with the hashtag #DanielWellington. In addition, these influencers were provided with promo codes to offer their followers a discount on watches from the brand. This means that you can also easily track where the sales come from.
This was very useful for increasing brand awareness and helped the company attract more than 1 million Instagram followers within the first year. Today, the brand has 4.5 million followers on Instagram and is considered one of the fastest growing companies in Europe.
The biggest lesson we can learn from this example is the way Daniel Wellington uses user-generated content. And the brand’s social media works to build long-term relationships with influencers and engage with followers on a regular basis.
3. How to get started?
There are 3 ways.
1. Search manually – takes a lot of time but gives the best results for the lowers price. Open social media platforms and search for users with 3000 – 20000 followers in your niche or hashtags relevant to your niche to find those people. These people are called micro-influencers. They usually have the best engagement for the lowest price.
Make sure to check the engagement. If every post has many likes and comments then this person can be right for you. Contact and offer a collaboration (test product, giveaway it for free or pay a small amount for a post with your product).
2. Influencer agency – fastest but high price and medium results. If you don’t want to spend a lot of time searching manually for influencers then you can contact influencer agencies. They can find a person for you fast. The problem usually is that that person may not be 100% for your niche and also it costs a lot to work with influencer agencies.
3. Affiliate networks – easy and ok results but not for everyone. It is an easy way to connect to millions of influencers and bloggers by joining some affiliate network. It is a place where brands connect with people who want to advertise their products. The problem is that it doesn’t work with any business. It is usually commission based so you will need to pay a small % for every sale/sign up that was generated by that blogger/influencer.
Some of the popular networks are: