Influencer marketing is prevalent in today’s advertising space, with a quarter of marketers incorporating it into their strategies.
Its significant growth underscores its potential but may not suit every e-commerce business.
Let’s take a look at why…
The Reality of Influencer Marketing
Influencer marketing has proven effective, especially among younger audiences.
Statistics show that half of millennials and a third of Gen Z have been influenced in their purchasing decisions by influencer recommendations.
Collaborating with influencers can also lessen the content creation load for businesses by shifting it to the influencers, allowing for broader content dissemination across various social media platforms.
However, measuring the return on investment (ROI) from influencer marketing can be challenging.
Choosing the Right Influencer to Drive E-Commerce
When selecting an influencer, it’s essential to consider more than just their follower count.
Engagement rate is a crucial metric to assess an influencer’s effectiveness, especially for e-commerce brands.
In 2022, macro-influencers on Instagram had an average engagement rate of 1.06%, while micro-influencers saw rates around 4.84%.
This means that a more significant following doesn’t always equate to higher engagement.
Keep that in mind when selecting influencers for your campaign.
Influencer Seeding
A long-used strategy for influencer marketing is influencer seeding, where products are sent to influencers without formal agreements.
This approach can foster authenticity and lay the groundwork for a more structured relationship later.
But it’s also a strategy that’s losing traction.
Back in 2008, I used this method to enroll influencers into my campaigns all the time, but in 2023, influencers are more savvy and usually want more compensation.
Also, something to consider is what the product is that you wish to seed with them. How much is it worth?
Most influencers will likely pass if it’s an inexpensive item, like lipstick.
However, if it’s a laptop computer, you will probably still find influencers willing to work with you.
The upshot is that it’s relative.
Evaluating the Fit for Influencer Marketing and E-Commerce
Before engaging in influencer marketing to drive e-commerce, businesses should assess whether their product aligns with this marketing approach – working with influencers.
Products that are truly innovative or unique may benefit more from influencer promotion.
Businesses should also clearly understand their target audience and niche before pursuing influencer collaborations, which I have discussed at length here at The Influence Marketer.
Conclusion
To develop a successful influencer campaign, businesses should select influencers who align with their target audience, maintain good engagement rates, and are suitable for promoting the product.
By doing so, businesses will run effective campaigns with a more substantial ROI and see more success working with influencers.
Got a question? Pop it into the comments below.
