The secret behind marketing strategy in the digital age no longer includes traditional celebrities, instead, it is now social media stars. Why is influencer marketing the future of digital marketing?

Celebrity endorsements, what are they?

The idea of celebrity endorsement has existed for decades in the marketing space, but, why did brands rely so heavily on celebrities to sell their products?

A celebrity endorsement is a form of advertising campaign that involves a well-known person using their fame to help promote either a product or a service. These endorsements are easy to spot and play a very important role in the brands marketing strategy. Brands rely on the publics admiration and connection with a celebrity to, for example, help promote and sell their products. A celebrity being associated with a product has a positive impact on the public’s ability to remember the ad, as well as, with purchase intention. With this being the case, brands relied on celebrities to endorse their products.

Examples of celebrity endorsements

Celebrity endorsement has proved to be lucrative for both the brand and the celebrity, examples of these endorsements are, George Forman and the George Forman Grill, Michael Jordan and his signature collection of Nike Air Jordan shoes, and Beyoncé, Britney Spears and Ray Charles’ association with Pepsi. Moreover, the association of a celebrity with a product or service truly has a great impact on the products success.

Where did celebrities endorse products and how much did it cost?

The celebrities endorse the brands products through their involvement in ad campaigns, as well, as using or wearing the products. The ad campaigns associated with these celebrities usually involve traditional media, for example, television ads. Of course, this form of advertisement does not come cheap. For example, a 30 second television ad on a national network in the US averages at about $115,000 merely for the advertising slot. Furthermore, this cost raises depending on how much the ad itself costs to produce. These costs, endorsement deals, ad production, and ad space, can in fact, amount to a great deal of investment that translates to a great deal of risk on the brands behalf.

What is the alternative?

Since the introduction of social media, there a much more cost-effective way to market to audiences. Over 40% of the world’s population use social media regularly. This presents brands with a new avenue to market and social media influencers are marketers answer to promoting their brands products in the digital space.

What are social media influencers?

Social media influencers are people that have built up a reputation and following on social media platforms. They are usually interested in specific fields, for example fashion, or beauty. The influencers gain followings across all platforms, namely, Facebook, Instagram and YouTube. Influencers have devoted fans that follow, interact and view the content that they provide. The two main categories of social media influencers are, mega influencers, who commonly are individuals with over 1 million followers, and macro influencers, who have between 40,000 and 1 million followers.

Influencer marketing: the new age?

Social media influencers have replaced the classic celebrity in everyday life. In modern times, people watch YouTube videos, for example, more than television shows. Kids idolize influencers, more kids now want to be YouTube stars than, for instance, movie stars or singers. Granted, this shift in popular culture extends to the marketing strategy for brands as it is now the influencers association, instead of a celebrities, that is used to drive sales. This form of advertising in the digital space is influencer marketing.

Influencer marketing and the stats

Influencer marketing spawned from the digital age to fit marketing in modern times. This phenomenon is the present and future of marketing through public figure association and the stats reflect its power. Several studies have been conducted that verify this assessment. Some of the findings have been shocking, namely, 70% of teens trust influencers more than traditional celebrities, and 74% of people trust social media sites to help guide their purchasing decisions. These statistics show clearly what the future of marketing is, and unfortunately big celebrity endorsements are in the past.

What does this mean for brands?

Most brands have joined the Influencer marketing trend with positive results, brands need to ask themselves questions like, why spend millions on a celebrity endorsement and creating ads, while at the same time, an influencer has more marketing power through a social media post such as a YouTube video or Instagram post? Spending on influencer marketing has reflected this, more and more brands have increased their spending on digital marketing to avail of the influencers power and reach. Unfortunately, the brands that do not adapt will be left behind. It is time for brands to realize the power that influencer marketing possesses and accept the new age.

Sources:

• https://digitalmarketinginstitute.com/blog/20-influencer-marketing-statistics-that-will-surprise-you
• https://influencermarketinghub.com/what-is-influencer-marketing/
• https://influencermarketinghub.com/what-is-influencer-marketing/
• https://fitsmallbusiness.com/tv-advertising/
• https://medium.com/@14ideas/the-future-of-celebrity-endorsement-c04bcbaceb45#:~:text=The%20official%20definition%20of%20celebrity,products%20in%20Target’s%20makeup%20aisle%2C
• https://www.sciencedirect.com/science/article/pii/S2214462518300586
• https://www.delish.com/uk/food-news/g30256639/biggest-celebrity-endorsements/
• https://stacker.com/stories/1830/30-notable-celebrity-endorsements
• https://www.businessinsider.com/american-kids-youtube-star-astronauts-survey-2019-7?r=US&IR=T