Week 4-MBA 6101- Influencer Marketing

 Influencer Marketing

With the introduction of social media, we have individuals who have made a name for themselves by reviewing products, doing tutorials or being the subject matter expert on pretty much every topic that is out there. These individuals have millions of views and followers on Youtube, TikTok and Instagram for just being a subject matter expert or looking a certain way. Businesses have taken note of this and within the last decade, influencer marketing has exploded. Companies have seen the persuasion and reach that these influencers have made for themselves and have used this new demographic as a way to market to the public.  The influencer marketing industry was worth $13.8 billion in 2021 and it is predicted to be worth $16.4 billion by the end of 2022 according to Influencer Marketing Hub. 

For example, if I am a makeup manufacturer, I could spend $100,000 on a TV and radio ad. Let's say this will reach 1 million people. On the other hand, I could sponsor or send product to a Youtube makeup personality that has 10 million subscribers and pay them $10,000 to mention their reviews of the product. The public is more likely to buy a product from an influencer that they look up to and trust rather than a general ad. Not only has this method seen a better conversion rate, but it is also less expensive for the business. This, in turn, will improve profit margins. 

A negative to influencer marketing is that it can severely damage a brands reputation if not careful on the influencer selection. If a high-profile influencer has negative comments about a brand experience or truly dislikes the product, that could lead to a plunge of sales. The millions of subscribers and followers could really sway sales in either a positive or negative way. In addition, if an influencer is involved with a controversial situation, their association with a brand could harm the brands reputation. While the influencer market has pros and cons, if done correctly and strategically, it could drastically enhance a brands presence.