An influencer is someone who can alter the purchase decisions of potential buyers. He could be anyone; a distinguished public figure, celebrity, sportsperson, or someone whom you trust.
Influencer marketing is how brands promote their products through endorsements or recommendations from influencers.
Presently worth ₹2,344 crore (2024), Influencer marketing in India is expected to surge by 25% to reach a massive ₹3,375 crore by 2026 (EY).
The history of Influencer Marketing goes back to 18th Century when a potter named In, who crafted a tea set for Queen Charlotte convinced her to introduce her pottery as “Queen ware by Wedgwood”.
No doubts, the potter is known to be the ‘Father of Modern Marketing’ and was the first-ever influencer to publicize himself and sell products.
Influence Marketing has evolved over time. In the 18th century, it was the royalty and the aristocracy leveraging social status to influence the buyers. In the 19th century and early 20th century, it was the celebrities, athletes and the experts utilizing their fame and to promote a product. In the mid 20th century, actors, singers and public figures influenced the public with the help of mass media (print/radio/television). In Late 20th century and early 21st century, online communities and media influences (bloggers/forum leaders) started engaging with the people asking for their experiences and recommendations.
Today, social media personalities (YouTubers and Instagrammers) with their niche followings and high engagement build trust and influence through consistent content creation.
Some brands which adhered to 'Influencer Marketing':
In 1905, Murad Cigarettes, a Turkish cigarette brand, tapped on to this strategy when they had Roscoe Arbuckle endorsing their brand.
In 1931, Coca Cola introduced the image of Santa Claus to market their product. It is said that it was Coca Cola created Santa Claus. Coca Cola however reject the claim. But Coca Cola sure gets the credit for shaping the character as we know it today.
In India, 'Gurudev' Ravindra Nath Tagore became the first influencer when he endorsed Godrej Soap in year 1922.
In 1941, actress Leela Chitnis became the face of Lux, a brand which has seen some of the biggest stars endorsement. Later on, Rajesh Khanna (Fabina), Amitabh Bachchan (Bombay Dyeing) and Jackie Shroff (Binny) joined as well.
Late actor Rishi Kapoor endorsed Rajdoot in 'Bobby'. In fild advertising of a brand was first of its kind and was an instant hit. Vinod Khanna and former Pakistan Cricket captain Imran Khan endorsed Cinthol soap.
Youtube and Instagram are the two main platform used by the influencers to market a product/service. On Youtube, the cost of a sponsored video (500k subscribers) is around $3420, while on Instagram, nano-influencer (less than 10k followers) charge between $20 to $100 and mega-influencers (over 100k followers) charge $1200 and more.
Today, 75% brands are expected to consider influencer marketing as part of their marketing strategy. Approximately 56% of the brands invested more than 2% on influencer marketing. Around 70% of brands plan to keep their influencer marketing budget the same or increase it in 2024, with half planning to increase it by up to 10%. On average, businesses earn $5.78 for every dollar spent on influencer marketing (The Goat Agency)
It is not that only the brands are minting money out of influencer marketing. Reportedly 77% of influencers reported income growth in the past two years and around 86% of influencers expected over 10% increase in their income over the next two years.
There is a lot to be explored with regards to Influencer marketing which is surely a powerhouse strategy for brands which are interested to connect with highly engaged and targeted audiences. As the landscape evolves, staying ahead of trends (AI & ML) and being flexible will unlock its full potential.
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