According to a recent report by Dentsu India and Boomlet Group, 70 percent of Indians believe influencer marketing has an impact on them, with 21 percent saying they are “extremely likely” to buy a product or service promoted by an influencer. Rama Ramachandranfounder and CEO of Mumbai-based content marketing company, Whoppl, says Anuradha Mishra about the word-of-mouth effect content creators have on consumers and how brands measure their impact. Edited excerpts.
Content creators bring a unique perspective to product promotion by presenting it from the consumer’s point of view. In traditional advertising, brands mainly emphasize product benefits and features. However, content creators customize their recommendations based on their own experience. By sharing their endorsement and urging their audience to try the product, they create a sense of authenticity.
The authenticity of influencer marketing is that it is driven by the users themselves, not dictated by brands. While content creators may have brand guidelines, their opinions about a product or service are entirely their own. They customize content using regional languages, improving relatability. Additionally, content creators add a narrative element to their promotion, making it both educational and entertaining, setting it apart from traditional advertising methods.
In today’s digital age, traditional brands’ social media presence alone is insufficient. These brands have astutely recognized the indispensability of influencer marketing. Influencer marketing has become ubiquitous in the advertising industry, gaining prominence across brand categories, spanning both traditional, technology-driven and forward-thinking brands. Unlike generic YouTube ads, when influencers candidly share their personal experiences and opinions about a product, it resonates with audiences. The authenticity and tonal nuances encapsulated in an influencer’s content lend a distinctive impact similar to widespread word-of-mouth endorsement.
One notable example is Daniel Wellington, a brand that has successfully partnered with influencers (IN INDIA?) to promote their watches, leading to widespread exposure among the influencers themselves. Similarly (Bengaluru-based) BlissClub uses influencers to highlight the comfort and versatility of its activewear, demonstrating its use beyond the realm of gyms and sports into everyday lounging.
Having influencers from different backgrounds, interests, shapes and sizes increases the relatability quotient for consumers. Many B2C brands have shifted their focus from traditional brand ambassadors to influencer marketing as their core strategy. This transition is driven by the recognition that influencers provide a better fit for everyday interactions, amplifying a brand’s message and gaining social support in the process.
Influencer campaigns are driven by specific goals, such as brand awareness, consideration, purchase or loyalty. For brand awareness, the focus is usually on reach, while consideration requires engaging content that informs and intrigues the audience. Purchase-oriented campaigns use clear calls-to-action such as “Shop Now,” “Link Clicks,” or coupon codes. Loyalty campaigns, on the other hand, aim to build a long-term community of advocates who consistently talk about the product, encouraging ongoing engagement instead of one-time transactions. Key Performance Indicators (KPIs) for influencer marketing campaigns often revolve around measuring cost per view (CPV), cost per reach (CPR) and click-through rate for campaigns that include website links.
The sphere of influencer marketing is experiencing rapid growth, especially in developing markets like India. Evaluating the suitability of an influencer for a brand involves looking at several parameters: the authenticity of their content; the ratio of branded to non-branded content they produce; their frequency and genre of publication; as well as understanding their tone and audience demographics. By examining these parameters, brands can ensure a seamless alignment between their values and those of the influencer.
In the unpredictable realm of human interaction, it becomes easier to identify influencers with strong opinions or those who adhere to certain fads. Brands that do not support such ideologies are better off avoiding collaborations with these influencers.
The landscape of content consumption has undergone significant transformations driven by widespread internet access, increased screen time and the proliferation of mobile devices. Today, people spend an average of four hours on their smartphones engaging with various social media platforms. Consequently, the value of the content has skyrocketed. This shift has paved the way for a host of aspiring creatives hailing not only from urban regions but also from tier 2 and tier 3 cities.
Fascinatingly, this trend extends across borders, with regional and hyper-local segments emerging as powerful players. It should be noted that most content consumers belong to the Gen Z demographic known for their voracious appetite for content.
Gen Z and millennials are looking for real insight into brands and yearn to uncover the social causes and authentic narratives associated with them. Their exposure to global events and the abundance of international content, such as Korean, American and European creations, have changed their expectations, forcing brands to convey more than a simple commercial identity. Essentially, for a brand to resonate and engender belief, it must truly embrace its purpose and actively communicate it to the world.
Negotiation dynamics and financial investment play a key role. As the industry continues to mature, standard practices have emerged offering approximate compensation figures for different levels of creators, namely nano, micro and macro influencers.
Evaluating the value of their spend involves a comprehensive assessment of factors such as views, engagement levels and alignment with the brand’s ethos. Any brand collaboration requires a contractual agreement meticulously outlining the influencer’s obligations, mandates, guidelines, brand conceptual framework, deliverables and payment methods.
This contractual framework establishes a transparent and consistent structure for all parties involved: brands, influencers and agencies. By formalizing expectations and defining partnership parameters, this process ensures clarity and sets the stage for successful collaborations in the ever-evolving influencer marketing landscape.
The influencer marketing industry is experiencing remarkable growth, with metropolitan creatives and an increasing number of regional and hyper-local influencers making their mark. In India, where regional content and consumption is booming, the content community is fighting back and poised for continued expansion. We are also seeing categories expand daily, with finance now playing a crucial role in influencer marketing. Brands are recognizing the real-time impact of influencer posts, the easily trackable brand mentions, and the marketing performance potential that accompanies such campaigns.
Influencer marketing proves effective in all industries, especially when the content feels organic, authentic and genuine, avoiding the perception of traditional advertising. Fashion, beauty and lifestyle categories are thriving in India’s influencer marketing landscape, while influencers from finance, food and parenting sectors are rapidly gaining traction. On the other hand, luxury brands face a relatively slower conversion rate due to their unique positioning and target audience.
The beauty of influencer marketing lies in its adaptability. At Whoppl, we align influencer strategies with brands’ marketing calendars. For example, in June, when schools reopen, we run back-to-school or back-to-campus campaigns. Likewise, we use influencer strategies during holiday seasons to ensure visibility amid heavy discount periods and prevent overcrowding. This approach allows brands to differentiate themselves and make a lasting impact.
In addition, a larger campaign concept for television commercials (TVCs) followed by social media campaigns involving a diverse set of influencers in different languages, categories and regions across the country can be developed. With careful planning and consideration, influencer marketing occupies a significant position in the advertising funnel.
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