There’s no denying the role of social media in advertising today. Entrepreneurs and marketers have observed that many individuals rely not only on traditional advertising channels but also on word-of-mouth and the opinions of those they trust. It is no wonder that companies that collaborate with influence marketing agencies or plan on having an “influencer marketing” strategy are on the rise. In this article, we’ll explore the future of advertising and how the proliferation of influence marketing agency will affect the advertising game.
The Rise of Influence Marketing Agencies
As online content creation grows, the increased importance of influencer marketing has become apparent. Brands invest millions of dollars every year into influencer marketing, with the goal of tapping into influencers’ vast reach and loyal follower bases. As a result, influence marketing agencies have slowly gone from being a new concept to becoming staples of the advertising world. While this industry is still rising, data shows that it is here to stay- the global influencer marketing industry is expected to be worth over $13.8 billion by 2021.
Personalization in Advertising
One of influencer marketing’s significant advantages is its ability to personalize advertising. Unlike traditional advertising, one can have personal and direct interactions with their audience. It is a marketing strategy that uses endorsements and product mentions made by “influencers” who have significant social influence over their followers. Brands collaborate with influencers with similar target audiences, ensuring a level of relatability amongst their consumers. As a result, their audience can feel a sense of connection that they often don’t with more traditional forms of advertising.
Greater Transparency and Authenticity
One of the ways that influencer marketing distinguishes itself from traditional advertising is its transparency. This transparency comes from the fact that consumers know that influencers are being paid to promote a product. The Federal Trade Commission also regulates this. To avoid possible legal penalties, influencers must disclose their relationship with a brand, so customers are aware of the financial agreements made between influencers and brands. As a result, influencer marketing comes across as more humane and genuine. Customers can trust the influencers’ endorsements because of their transparent approach.
Better Marketing Analysis
In the past, marketers had difficulty evaluating the effectiveness of their ad campaigns because of various factors, including the inability to track ROI. They also found it challenging to determine if the ads reached their intended audience. On the other hand, influencer marketing agencies offer a deeper understanding of who their clients’ audience is, allowing companies to create targeted campaigns that can gain engagement and traction. Social media makes it easier because service providers can gather audience data, enabling influencers to figure out how to connect with their followers better. With that said, data will continue to play a significant part in the marketing world, and influencer marketing is no exception.
Amplifying Diversity and Inclusivity
Marketing serves to promote a company’s goods or services to a broad audience. With influence marketing agencies, companies can amplify and micromanage their content to be inclusive. Inclusivity and diversity have become exceedingly important to a vast majority of consumers. To stay on-brand and relevant, companies invest in influencer marketing that includes people of varying ages, genders, races and so on. While traditional advertising has struggled with inclusivity, influencer marketing has risen to the inclusive occasion.
Influence marketing agencies are becoming part-and-parcel of advertising. As it grows, companies will be able to benefit further from the personalization, transparency, authenticity, marketing analysis, and the inclusion it brings. As we have seen, influencer marketing is a marketing tactic that connects with customers more humanely and allows marketers to sell their products or services better. In the future, we can expect online content creation to continue to grow- and that means the influence marketing industry will remain stable and, more than likely, continue to grow as well. There is no doubt the industry will continue to grow because of how easily it caters to the needs of both businesses and customers.