Influencer Marketing Literature Review

review the literature on influencer marketing

In recent years, influencer marketing has emerged as one of the most effective ways for brands to reach their target audiences. Influencer marketing involves partnering with social media influencers to promote a brand, product, or service to their followers. With the rise of social media, influencers have become increasingly powerful in shaping consumer behavior and driving sales. In this article, we will review the literature on influencer marketing to understand its impact on consumers and its effectiveness as a marketing strategy.
Influencer marketing has become an important strategy for marketers to reach their target audiences. According to a survey by Influencer Marketing Hub, 63% of marketers plan to increase their influencer marketing budget in 2021. In addition, 73% of consumers have made a purchase based on something they saw on social media. Influencer marketing has become an effective way to reach consumers where they are spending most of their time: on social media.

Advantages

One of the main advantages of influencer marketing is its ability to create trust and credibility with consumers. Social media influencers have built their followings by being authentic and genuine with their followers. When they promote a brand or product, their followers trust that they are genuinely recommending something they believe in. This can be especially powerful for brands that are looking to reach younger consumers who are increasingly skeptical of traditional advertising.

Reach New Audience

Influencer marketing can also help brands reach new audiences. Influencers have their own dedicated followings, which can be very different from a brand’s existing audience. By partnering with an influencer, a brand can tap into a new audience and potentially reach new customers. This can be especially effective for brands that are looking to target specific demographics or niches.
However, there are also potential drawbacks to influencer marketing. One of the main concerns is the authenticity of the influencer’s endorsement. In some cases, influencers may promote a brand or product simply because they are being paid to do so, rather than because they genuinely believe in it. This can undermine the trust and credibility that influencers have built with their followers, and can lead to negative perceptions of both the influencer and the brand.

Issues

Another potential issue with influencer marketing is the difficulty of measuring its effectiveness. Unlike traditional advertising, where metrics such as reach, impressions, and click-through rates can be easily tracked, influencer marketing can be more difficult to measure. It can be challenging to determine how much of an impact an influencer had on a consumer’s decision to purchase a product, and whether the return on investment was worth the cost of the partnership.

Despite these concerns, the literature suggests that influencer marketing can be an effective strategy for brands. A study by Linqia found that 86% of marketers used influencer marketing in 2019, and that 57% of marketers found it to be an effective strategy. In addition, a study by Influencer Marketing Hub found that for every $1 spent on influencer marketing, brands earned an average of $5.78 in earned media value.
Influencer marketing has also been found to have a significant impact on consumer behavior. A study by Nielsen found that 92% of consumers trust recommendations from individuals over brands, and that influencer marketing generates 11 times higher return on investment than traditional digital marketing methods. Another study by Collective Bias found that 70% of millennial consumers are influenced by the recommendations of their peers in buying decisions.

Conclusion

In conclusion, influencer marketing has become an important strategy for brands looking to reach their target audiences. It can create trust and credibility with consumers, help brands reach new audiences, and has been found to be an effective strategy by many marketers. While there are concerns about the authenticity of influencer endorsements and the difficulty of measuring its effectiveness, the literature suggests that influencer marketing can be a powerful tool for brands looking to drive sales and build brand.