Gone are the days when advertising just meant broadcasting to a generic audience and trusting that the process would deliver for companies. Today, in a widely saturated (and often global) market, consumers seek a much more personalised experience when choosing which brands to build a relationship with. As such, the way businesses market to their audience must be much more targeted, with tailored content and actual conversations with their preferred brands rather than a one-way communique.
Modern consumers also have many more options, and word-of-mouth is an incredibly powerful marketing tool – especially when it comes from real people who genuinely recommend a product or service through their real-life experiences of it.
This is why influencer marketing and user-generated content are so important in a digital strategy.
What is Influencer Marketing?
Influencer marketing is a form of social media marketing whereby product mentions and endorsements are provided by individuals who have a dedicated social following and who are considered to be experts in their niche. They have built a high level of trust with their followers and the recommendations they make are perceived as social proof for the products and brands they promote. Influencers are paid by the companies they endorse.
What is User-Generated Content?
User-generated content or UGC is created and shared by non-official representatives of a brand. This unpaid content is not published by the brand’s employees or affiliates. It may include reviews, social posts, blogs, podcasts, videos, and more.
The Evolution of Influencer & UGC Marketing
Generating leads is the top priority for marketers, yet 61% of marketers report that lead generation is their biggest challenge. Influencer and UGC marketing are proving to be extremely powerful tools for generating leads from highly targeted audiences.
Just a decade ago, celebrities and celebrity bloggers were the foundation of influencer marketing. It was easy to stand out among the crowd with high-quality, eye-catching posts (Instagram is especially good for this). For the most successful influencers, it could become a full-time career and impressive income stream.
This has now changed enormously, and influencers have needed to evolve to offer something more unique to stand out. Ironically, many Millennial influencers are returning to a more authentic, “photos between friends” baseline style of post to capture attention. With limited editing and a more casual aesthetic.
There is now a saturation of social influencers, particularly due to the rise of reality TV and its impact on influencer marketing. Love or loathe them, the most successful reality TV “stars” are bringing huge numbers of customers to the brands they represent (in what is often an extremely lucrative partnership for both sides) – and many younger consumers prefer following these individuals over traditional celebrity endorsement marketing. In mid-2022, they include the likes of Abbie Chatfield (The Bachelor), Jackie O (The Masked Singer), Anna Heinrich (SAS), Domenica Calarco and Ella May Ding (MAFS), and Adam Liaw (Masterchef).
Types of Influencers
There are several types of influencer marketing, including:
- Sponsored Content
- Brand Ambassadors
- Reviews
- Content/Product Collaborations
- Contests and Giveaways
There are also different types of influencers:
- Mega – these influencers have more than 1 million followers on at least one social platform and include A-list celebrities. Many of these influencers are famous in their own right for their talent or achievements and not simply for being influencers. A single post by this influencer is worth between $100 and $20,000 but can be worth $1 million for the biggest mega influencers. Australian examples include Ozzy Man Reviews, Chris Hemsworth, Margot Robbie, Wengie, and Miranda Kerr.
- Macro – these have between 40,000 and 1 million followers on one social platform. Their fame is predominantly via online activity, e.g. blogging, vlogging, or as influencers. They are more affordable for brands than mega influencers, but a single post is still worth between $80 and $1,500. Australian examples include Emily Skye and Abbie Chatfield.
- Micro – these influencers have between 1,000 and 40,000 followers on a social platform. They are very niche and usually authorities in their field, particularly cosmetics, fashion, travel, fitness, parenting, food, and music. They have a greater air of authenticity due to their relatability and brands may use several micro-influencers. They are a great choice for start-ups and posts are worth $20 to $200 apiece.
- Nano – with fewer than 1,000 followers, their following is small but extremely loyal. Their influence across their immediate community is strong and usually consists of friends and family and extends to people with the same experiences and interests. They are often educators, medical professionals, and local community leaders. Sponsored posts can earn between $10 and $65 each.
You must appreciate the importance of choosing the right influencer/s for your industry, niche, brand identity, product offering, and target audience. Choosing the right influencer can drive your business growth and success beyond your expectations; a polarising or poor choice of influencer representing your brand can have an opposite, very damaging impact.
Should You Invest in Influencer Marketing and UGC?
In 2022, consumers are savvier than ever before and perceive many advertisers and marketers as potentially being somewhat untrustworthy, whereas non-affiliated users have no obvious “agenda”. USG, in particular, is considered to be a more authentic representation of products and brands.
Influencer marketing enables both large and small brands to generate leads and compete. As such, USG and influencer marketing have an important role in a comprehensive digital strategy.
The statistics speak for themselves.
- 90% of consumers report that UGC influences their purchase decision more than search engine results or promotional email marketing.
- Near 50% of consumers have converted directly based on influencers and more than 80% of women look to their preferred influencers for shopping inspiration.
- 89% of marketers report that influencer marketing is at least comparable to other channels.
- For digital media, influencer marketing delivers 11x higher ROI.
- Micro-influencers constitute more than 40% of total influencer numbers in Australia and micro-influencers are generally more trusted than macro-influencers.
- YouTube and Instagram are the most-used influencer platforms.
- 85% of influencers are female, and 31% are under 25 years of age.
(Source: TakeATumble)
Revolutionise Your Digital Strategy Today!
Dot-to-Dot Digital can help you reach your business goals! We are a team of experienced digital strategists and we have the techniques and industry insights to understand your goals, design the right digital strategy for your business, and deliver on our promise to you: greater online visibility, more targeted online leads, and more enquiries!
In terms of UGC and influencer marketing, we can help you with influencer outreach, help identify the right influencer fit for your brand, set a management strategy and budget, trigger UGC, select the right hashtags, create your messaging, implement and track your campaigns, and much more.
Book a session today and chat with a digital strategist. We look forward to meeting you!
