According to GlobalWebIndex, 49% of consumers reported that they purchased a product after seeing an influencer they follow, endorse or review it. One of the marketing trends for 2023 and 2024 is utilizing influencer marketing across various social media channels. Let’s explore a few case studies demonstrating the effective application of influencer marketing with MKT Software.
I. Influencer marketing: Comparing macro influencers and micro influencers
What is influencer marketing?
Influencer Marketing is a social media strategy that leverages influential individuals to convey a brand’s message to the target market. Campaigns are built on collaborating with influencers to achieve communication goals, promote brand awareness, and reach potential customers.
Instead of direct advertising, businesses harness the power of influencers to create authentic and credible content across social media platforms. This strategy not only helps increase brand visibility but also aids in maintaining a good relationship with customers throughout the supply chain.
Comparing macro influencers and micro influencers:
- Micro Influencers: Typically have 10,000 to 99,999 followers and are considered more authentic and accessible. They have higher engagement rates due to more personal and direct interactions with their followers. Loyal followers actively engage with their content, leading to more comments, likes, and shares per post. Micro influencers often have lower costs, making them an excellent choice for brands with limited budgets.
- Macro Influencers: Generally have 100,000 followers or more, potentially reaching nearly a million. Although macro influencers have lower engagement rates compared to micro influencers, their large follower base still generates significant interactions. Collaborating with macro influencers requires higher costs due to their broad reach and influence. Their content can sometimes appear less personal due to the wide scope of their audience.
II. Success stories from influencer marketing
Influencer marketing has been a significant game-changer for numerous brands, enhancing their visibility and boosting sales substantially. To fully grasp the effectiveness of this strategy, let’s explore some notable success stories. One of the most convincing instances is when Sean Diddy partnered with Ciroc Vodka.
1. Ciroc Vodka – Sean Diddy
In 2007, rapper Diddy agreed to a deal with Diageo to take on the roles of Brand Director and Marketing Director for Ciroc Vodka. During that period, Sean Diddy gained recognition as a prominent figure linked to the Ciroc Vodka brand, altering the brand’s image through influencer marketing.
Due to this, sales have surged by 600% from December 2012, selling over 2 million cases, contrasting with a mere 40,000 cases in 2007. The successful partnership between Diddy and Diageo highlights the influence of celebrities in boosting brand attractiveness. Liz Miller, the
Marketing Council’s Vice President, stated that any marketing campaign initiated by Diddy was viewed as trustworthy by consumers.
“That’s why more brands want to establish a direct relationship with celebrities, as it is fundamentally different from paying them to appear in an advertisement,” Miller said.
How did he capture all the attention? And more importantly, how can we all achieve that? Here are five things he did:
- Say your name: Diddy always features a bottle of Ciroc or Aquahydrate in interviews on Ellen, Jimmy Kimmel, or The Breakfast Club. Self-promoting his drinks, shows, music, and movies is part of Diddy’s strategy.
- Leverage relationships: Diddy uses promotion and career development of the musicians he works with. Zig Ziglar once said, “You can have everything you want in life if you will just help other people get what they want.” By helping others achieve their goals, you expand your circle of influence and those who will do anything for you.
- Stay updated: Diddy contributed to building a prestigious school in East Harlem, the neighborhood where he grew up. Identifying such opportunities has greatly benefited him in building and solidifying his brand/reputation.
- Understand your audience: Diddy targets an audience seeking to excel despite their circumstances and disregards excuses. He attracts those who want better things in life, proud of their race, hardworking, and socially conscious.
- Positive energy: Diddy always appears to be having a great time, from salsa dancing in his underwear to the energy he brings when hosting shows. People are drawn to optimistic individuals, so keep a smile on your face and excitement about whatever you do!
SEE MORE: Successful And Sustainable Business Tips from Sean Diddy
2. Whitelab – Oh Se Hun
On February 10, 2022, Whitelab announced that they had hired Oh Se Hun as their new brand ambassador. The announcement coincided with the launch of his latest product, A-Dose+ Glowing Serum. According to Compas Dashboard, within three months, A-Dose+ Glowing Serum sold 9,000 units at official Shopee and Tokopedia stores, accounting for approximately 13.9% of all Whitelab’s serum products.
Data shows that A-Dose+ Glowing Serum sold 8 times more on Shopee than on Tokopedia. On Shopee, sales were around 8,500 units, while on Tokopedia, it was 1,400 units. Whitelab successfully used influencer marketing to boost sales and brand awareness. Choosing a famous star like Oh Se Hun generated significant attention and effectively drove sales.
3. Somthinc – NCT Dream
When NCT Dream was announced as the brand ambassador for Somthinc on January 1, 2022, just two days later, Somthinc launched the Beauty Package product collaboration with four new Beauty Package variants exclusive to this collaboration, including a reward of 5 photocard of NCT Dream members.
Data from Compas Dashboard shows that within three months, the Somethinc x NCT Dream beauty package sold both in official and unofficial stores on Shopee and Tokopedia, achieving a revenue of 1.3 billion IDR. This accounted for 15.1% of Somthinc’s total beauty package revenue.
Three out of the four collaborative products also made it into the top 5 of Somthinc’s beauty package products, ranking 2, 3, and 5 respectively. The beauty packages are:
- Somethinc NCT Dream’s Pick – Brightening Kit (Vol.1): Sold 1,230 packages, contributing 351 million IDR.
- Somethinc NCT Dream’s Acne & Pore Combat (Vol.1): Sold 1,040 products, generating 330 million IDR.
- Somethinc NCT Dream’s Pick – Sensitive Skin Kit (Vol.1): Sold 1,010 packages, contributing 301 million IDR.
Somthinc successfully created appeal by collaborating with a famous group and using attractive promotional programs to boost sales. Somthinc effectively leveraged the influence of NCT Dream to increase revenue and enhance brand awareness. The collaboration strategy and promotional campaigns proved effective, demonstrating that partnering with influencers can drive sales and product popularity.
III. Tips for small businesses implementing influencer marketing
Influencer marketing isn’t just for large brands with huge budgets. Small businesses can also leverage the power of influencers to increase brand awareness and sales. Here are some practical tips for small businesses to effectively use influencer marketing:
- Set clear objectives: Clearly define what you aim to achieve through influencer marketing, such as enhancing brand awareness or boosting sales.
- Choose the right influencer: Select influencers whose audience matches your target market. Micro-influencers are often more affordable and tend to have higher engagement rates.
- Create authentic content: Collaborate with influencers to produce genuine and creative content that accurately represents your brand’s message..
- Monitor performance: Track the effectiveness of your campaigns using analytics tools. Adjust strategies based on engagement metrics, sales figures, and overall brand visibility.
- Build long-term relationships: Develop ongoing partnerships with influencers to ensure consistent brand promotion and sustained benefits.
- Utilize free platforms: Make use of social media and basic analytics tools. Explore opportunities for product exchanges in return for promotions to minimize costs.
By applying these strategies, small businesses can maximize the impact of influencer marketing to drive growth and success in a competitive market.
IV. Future trends in influencer marketing
As we look ahead, one major factor in the future of influencer marketing is the increased focus on authentic engagement. Explore the following key trends:
1. Enhanced authentic engagement
Focus on genuine interactions and meaningful connections between influencers and their audience. Brands will prioritize working with influencers who have a deep connection with their audience rather than just a high follower count.
2. Integration of new technologies
New technologies, such as artificial intelligence (AI) and big data analytics, will play a significant role in optimizing influencer marketing strategies. Auto marketing solution will be a game-changer for businesses that know how to leverage and apply technology early, leading to more effective campaigns.
3. Rise of micro and nano influencers
Micro and nano influencers, despite having smaller followings, will become increasingly important in influencer marketing strategies. Emphasize collaboration with smaller influencers who have high engagement rates and local influence.
4. Focus on social and sustainability issues
Consumers are increasingly concerned about the social responsibility of brands. Influencers will be expected to not only promote products but also engage in community activities, environmental protection, and drive positive societal change.
Conclusion
Influencer marketing will continue to be a crucial component of brand marketing strategies, with ongoing advancements in technology and shifts in consumer behavior. By embracing future trends and adapting strategies accordingly, brands can create more effective marketing campaigns, build deeper connections with customers, and maintain competitiveness in the market.
