20.03.2021 · 4 min read

Influencer marketing: the advantages and disadvantages

For a few years now, influencers have been impossible to ignore in marketing. As a branch of marketing they are no longer just on the rise, they are right in the middle of it. These days you see them not only on social networks, but also on magazine covers, in commercials, or as the face of campaigns for tights, cosmetics and many other products.

Influencers have a big influence on buying decisions. The reasons are the reach of social media networks, which, according to a 2016 study by the marketing agency ODM Group, already played a role in 74 percent of buying decisions. The age of consumers plays a role too. According to the PR agency Faktenkontor, half of 14- to 19-year-olds are influenced by influencers. The influence of influencers falls as people get older. Among those over 60 they play a role for only 3 percent of the people surveyed.

Here we briefly set out the advantages and disadvantages this can bring for companies that advertise.

ADVANTAGES

High reach
The high follower counts of influencers give companies a very strong reach. The term influencer is not tied to one particular follower count. From as few as 1,000 followers, someone can be called a micro-influencer if they prompt their followers to buy and provide a lot of inspiration in the community. Nano-influencers are a trend now too. With fewer than 1,000 followers they can serve a very tight niche and have high credibility in their community, because many followers are friends, acquaintances and family members.
Precise targeting
Through influencers, companies can address target groups in a focused way. There is an influencer on the web for every product group. Instead of spreading their content widely, companies can address buyers much more precisely by choosing the right influencer. Influencers are also seen as approachable. They bridge the distance between companies and customers and can communicate with target groups more directly than the companies themselves.
Success that is easy to measure
Through the comments under the relevant posts and the number of interactions, companies can easily follow how the target group receives the content. Conversions can also be tracked precisely, for example by linking an individual discount code.

DISADVANTAGES

Choosing the influencer carefully
Influencers have to be chosen so they fit the target group exactly. The content matters too, because with influencers it comes down to the messages being conveyed correctly. Choosing the wrong influencer can quickly look implausible and completely distort the message.

Loss of control
You can give influencers guidelines on how, when and which message they should convey, but most of them keep a certain amount of room so they can stay authentic. As a company you therefore do not always have full control over your advertising content. And caution: if the collaboration goes badly, the influencer’s opinion leadership can also turn against the company.

Influencer marketing can get expensive.
Because they know their worth. The rising popularity of influencers shows this trend. An influencer campaign, so-called paid content, can therefore be costly. To save money, smaller companies can start with smaller influencers and pick a niche. That usually needs far less budget.

Takeaway

What now?

Strategic and planned.

Despite the many advantages of influencer marketing, you should examine the opportunities and risks carefully. Companies should choose their influencers carefully and check whether the chemistry and the expectations between influencer and company fit. We are happy to help you with a strategy for your influencer marketing. Just get in touch with us.