Influencer marketing on just Instagram alone is expected to be a $1 billion market by the end of this year and will double in size by 2019, according to Mediakix and a recent post from ValueWalk.
In another indicator, Google Keyword Tool captured influencer marketing as a search word 50 times a month in 2013. That number has since increased to 4,400 and is still growing, reports Forbes.
A seemingly endless stream of statistics validate brands’ use of influencer marketing. At the same time, such programs include similar risks to celebrity endorsements and additional risks that are unique to digital advertising. Regarding the appeal of influencer marketing, the growing use of ad blockers is encouraging brands to embrace influencer marketing.
According to an article from MarketingLand, nearly one-fourth of U.S. internet users have ad blockers and more web surfers are expected to embrace the technology over time. Yet, YouTube shows, such as Epic Rap Battles of History, can have millions of subscribers, thereby providing a marketing pipeline that isn’t restricted by ad blockers. The Epic Rap show features rappers debating historical issues.
MarketingLand also reports that internet users’ strong preference for a limited number of apps, such as Facebook, means that brands can benefit by targeting specific social media platforms. Influencer marketing is also more likely to be well received than advertising.
Nielsen’s 2015 Global Trust in Advertising illustrates that point. It found that 66% of survey respondents said they trust opinions posted online compared to only 42% that said they trusted advertisements.
Unlike paid advertising, of course, influencer marketing is often integrated into an online celebrity’s image, which makes it more believable to viewers. Yet, brands face a variety of challenges, or risks, when undertaking influencer marketing.
One challenge isn’t much different from traditional advertising. Simply put, brands need to avoid offending the general public. Over the years, Pepsi has become a poster child for influencer initiatives gone wrong. Most recently, its video of social media celebrity Kendall Jenner ending a protest by handing a police officer a can of Pepsi sparked a massive backlash with critics claiming that the campaign devalued legitimate efforts to forge unification to end conflicts.
The debacle underscores a common theme among social media marketers—brands need to insert their messages within influencers’ content rather build content around influencers. The idea is that influencers’ fans follow online celebrities because they like the content that the individuals produce. Once an influencer no longer is producing content, fans can quickly be turned off.
In another marketing blunder, Pepsi’s 1989 Madonna campaign also received widespread criticism. Shortly after Pepsi’s content with Madonna was released, the vocalist launched her “Like a Prayer” video that offended many Christians because of its sexual innuendos and religious imagery. Pepsi promptly canceled its $5 million contract with the musician.
In a more recent example, Disney promptly ended its relationship with Felix Kjellberg, aka PewDiePie, who is considered to be one of YouTube’s biggest stars with 49 million fans. Disney pulled the plug, however, after PewDiePie launched an anti-semitic video.
The Madonna and PewDiePie incidents illustrate the need for brands to thoroughly assess the influencers that they use. While it’s unclear if aggressive background research could have unearthed the potential problems with PewDiePie, Madonna is a different case, with the singer already having a track record of producing racy videos with religious overtones.
The bottom line for influencer marketing is that brands need to be diligent in producing content that will resonate with the public. In that sense, influencer strategies aren’t much different than traditional marketing, but when done properly, they can be highly effective.