Influencer marketing: benefits, pitfalls, and when it works

At the Boxing Influencers Event, rapper Akwasi shows that he is a man of many talents. While he in in this video standing in his tuxedo throwing pizza doughIt emerges that he has a past with New York Pizza. So, Akwasi was able to relive his youth that evening. And New York Pizza was able to promote the new High Protein pizza. Win-win. This is one example of influencer marketing. But does it really have nothing but benefits?

No idea how much Akwasi got paid for his cooking skills that evening. In America, as a pizza influencer, you can at least get around that much. $110.000 a year earning. That is slightly above the budget of an average marketing campaign. Is it worth it? Are the benefits of influencer marketing really that significant? And is it really that effective? You can read more about that in this blog. But first, let's take a look at exactly what it is. 

Influencer marketing is increasing your brand awareness through influencers

They can do that for you because they have a large following online. Loyal followers. For a nano-influencer, that is a maximum of 5.000. A micro-influencer has between 5.000 and 50.000. And a macro-influencer has up to 100.000 followers. With such reach, you can naturally exert quite a bit of influence online. 

The power of influencer marketing lies in the fact that influencers are in one-on-one contact with their followers. Your customer. This is also known as “human-to-human marketing.” The connection you wish to build with your chosen influencer is also human. After all, a successful influencer marketing campaign is not about a one-off post. You want to work together on a long-term strategy for your organization. Influencer marketing is therefore also a form of relationship management.

An example of the power of influencer marketing

Do you know tech YouTuber Marques Brownlee? To give you an idea: he has more subscribers than the Washington Post, Wall Street Journal, New York Times, and USA Today combined. Last year, he went to test an electric car from Fisker Ocean. Fisker Ocean said they would send him a unit after performing some final updates. Brownlee decided he didn't want to wait for that. He wanted to review the product people were driving at that very moment. 

Brownlee decided to borrow a car… His review? “This is the worst car I have ever reviewed.” The video has now been viewed more than six million times, and the share price of Fisker Ocean fell by 50%. This immediately reveals a major disadvantage for you as an advertiser: you do not always have control over the outcome of an influencer marketing campaign.

Influencer marketing has not only advantages

Most people likely noticed this during the coronavirus period. At that time, many Dutch celebrities and influencers made their voices heard via the hashtag “ikdoenietmeermee” (I’m not participating anymore). One of those influencers was Famke Louise. That same year, she had participated in a government campaign urging young people to adhere to the basic rules. Inconsistent behavior is therefore one of the downsides: 

• Inconsistent behaviorInfluencers are people. They might participate in an anti-smoking campaign one month and be pictured with a cigarette the next. Furthermore, their sincere intentions are compromised if they choose to promote products solely for the money. They quickly lose the trust of their followers doing so, and consequently, you as an organization lose it too.
• CostsA popular influencer can easily cost you a lot of money. However, it is difficult to say anything meaningful about those costs: they vary widely and are not transparent. For instance, a micro-influencer can charge between €100 and €500 for an Instagram post, whereas a macro-influencer can charge between €3.000 and as much as €15.000. 
• Inconsistent resultsYou can never determine the impact of a campaign in advance. That depends on the authenticity of the influencers and how well they appeal to their audience. Furthermore, it is sometimes difficult to determine what the direct influence of a campaign has been. 
• Transparency regarding rulesFor a long time, the rules surrounding influencer marketing were unclear. This was tricky, because as an advertiser, you are always held responsible for following those rules. Fortunately, since 2019, the Social Media Advertising Code tightened and there is a bit more clarity.  

The benefits of influencer marketing are not only commercial

For example, Yarasky, a Dutch gaming vlogger, sprang into action for Make-a-Wish Netherlands. With a 24-hour livestream, he ultimately raised €10.000. An amount that allowed many sick children to fulfill their dearest wish. Yarasky also generated high PR value because his videos were shared so widely. That interaction with followers is one of the benefits of influencer marketing: 

• InvolvedThrough an influencer, followers are more inclined to seek interaction. For example, by commenting on content, liking it, forwarding it, or recommending it via word-of-mouth. This ensures that the visibility of your brand or organization increases. 
• AuthenticityInfluencers create content that users can relate to. As a result, it feels like they are genuinely recommending a product rather than selling it. For that reason, you want to put creative, “raw” content at the top of your wish list for your social media strategy. 
• Credibility and trustFollowers are often loyal to an influencer. Does that influencer recommend your product or service? Then that reflects positively on your brand's reputation. This is how you can make your brand more credible. In traditional marketing, this comes across too much as self-serving.
• Specific target audienceBy choosing the right influencers, you can more easily reach hard-to-reach target groups. Think, for example, of young people in disadvantaged neighborhoods.

Influencer marketing can be very effective

In the long term. Initially, it is about increasing your brand awareness. That does not immediately lead to extra sales. In fact, about half of Dutch young people find influencer advertising annoying. And yet it is effective! Because one in three young people says they buy products because of influencers. This is evident from the Large Youth Survey 2023 from Mediahuis, MediaTest and Wayne Parker Kent.

Young people trust influencers more than a brand itself. It appears that 69% of consumers are more likely to accept recommendations from influencers than from the brand itself. And Media Kix investigated that. 60% of marketers believe that posts by influencers perform better. than branded posts. Convince and Convert calculated that for every dollar invested in influencer marketing an average turnover of $6,50 was achieved. By the looks of it, there is a lot to be gained through influencer marketing. Still, you want to think carefully about whether it is really the right method for you. 

First determine whether influencer marketing suits you better than traditional marketing. 

That depends on various factors, such as:  

• Your target audience: Is it primarily online? Then influencer marketing is probably a good move.  
• BudgetInfluencer marketing offers more flexibility in the budget. Yes, for an American pizza influencer, you will spend around $100.000 a year. But with nano- and micro-influencers, you can incur significantly lower costs.
• TimingDo you have a tight deadline? Then you might consider influencer marketing. After all, a post goes online faster than, for example, a TV commercial or a print advertisement. 
• ImagoWhat do you want to project as a brand? Influencer marketing is more authentic and dynamic, while traditional marketing has a stricter, more business-like appearance.

Do you want to tackle your broader social media strategy after influencer marketing? Then read our blog about setting up a successful social media strategy.