Your favorite celebrity on Instagram isn’t just showing you her favorite pair of shades in that selfie on the beach – she is likely getting paid by the brand to endorse the product to millions of followers –this is the latest brand marketing trend known as influencer marketing (Linqia, 2017).
Celebrities and people with a large amount of followers on social channels are hired to “represent the brand”. This is a paid acquisition marketing channel in the integrated marketing mix. Brands are investing in this type of marketing to offer authentic content, to drive engagement with the brand, and drive traffic to their landing pages or website for conversion. When the celebrity shares the image or video, the brand achieves brand awareness, conversion into the sales funnel, sales, or an opportunity to remarket to people who view the content or landing page.
But is it authentic content? It certainly appears to be that way yet the FTC has guidelines around the disclosure of this type of marketing. Companies are required to promote this content fairly by labeling it as “sponsored content”. In the social channels, the endorsement is coming from a personal celebrity account so it is unclear whether or not that celebrity is getting paid or just wants to show their preference for the brand.
This type of marketing is squarely aimed at the millennial generation who value like-minded brands and social outreach (Spenner, 2014). Millennials are known for avoiding advertising in favor of authentic, inspirational, socially conscious brands that speak to them on their favorite social media channels. Over the social channels, it appears to be a win-win. Fans get the latest products from their favorite celebrities and brands can establish a more personal relationship with their customers and provide them with recommendations they seek from like-minded friends, companies, and celebrities they admire (Linqia, 2017). With ad blockers growing in popularity, and TV declining in value to millennials (Spenner, 2014), it’s the grey area between an official sponsorship and a subtle product mention in a photo on Instagram, twitter, snapchat, or facebook.
Brands that have tested influencer marketing are ready to invest more into this channel. Of 170 marketers surveyed by Linqia (2017), 86% of marketers used influencer marketing as a marketing channel, and 94% of them found it effective.
Brands are paying for endorsement to effective target the right audience who will likely pay attention and take action. Celebrities have a personal brand with a large audience who views them as a thought leader in a brands’ specific market (Agrawal, 2016).
It leaves me to wonder when influencer marketing will fade out, as the audience may become jaded to the fact that they are being led to a marketplace. When you see a post from your favorite people, are things really what they seem to be? Are you getting an authentic story or a paid advertisement (Whitfill, 2009). What are your thoughts on the upward trend of influencer marketing?
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