A Brief Overview On The Not-So Brief History Of Influencer Marketing.

Did you know that 92% of consumers trust word-of-mouth recommendations above all other forms of advertising?

Did you know that 49% of Consumers Depend on Influencer Recommendations?

…And did you know that marketers spend an average of $25,000-$50,000 on Influencer Marketing Campaigns?

These are not just random facts about Influencer Marketing and its undeniable fast-growing supremacy, or better said, yes, they are but are also a clear sign of a new market direction., which cannot be ignored.

So, some questions arise: where exactly this phenomenon has originated? And what are the socio-cultural implications that made this phenomenon so powerful?

I can understand that these questions also keep you up at night, so here's a brief overview on the not-so brief history of influencer marketing.

The technology world is rapidly changing and today the human being is the centre of this frenetic development. The 21st century has experienced a communications revolution and this transformation into a digital world has brought new implications, both in a human interactions and business operations, specifically in marketing activities and strategies. Digital marketing emerged in the 1990s and 2000s in order to bring new technologies into marketing strategies, as a consequence of internet and digital media development. In fact, traditional marketing, which include television, magazines, newspapers and radio has become to be perceived as outdated. Hence, industries turned to an integrate marketing approach, which combine multiple forms of disciplines, ably defined by Nielsen (2016) as a shifting trend from linear one-way communication to a value exchange model of reciprocal dialogue and benefits between consumers and brands.

Moreover, two major events in the early part of this decade have contributed to shape this new digital marketing era. The technological development, together with global economic downturn and financial crisis in 2008, inevitably changed several companies’ marketing strategies as well as consumers’ perceptions and behaviours. Many industries started to drastically reduce or cut expenditures for marketing and advertising, and the most convenient solution to face these costs-cutting measures, was to implement a social media marketing strategy. Social media introduced new opportunities for brands to interact with people, connect existing and potential consumers through the viral effect of influential personalities. In addition, platforms such as blogs and social networks has created a new way to communicate, which Charlesworth (2018) describes as a revolution in user-generated content. The arguments in favour of why companies should implement social media marketing strategies are several, including costs, time, relationships and engaging benefits (Charlesworth, 2018). However, the main reason is the essential role of social networks as an integral part of everyday life. According to last estimations, social media users are 45% of the total world population and they spend nearly 2.5 hours on social media platforms every day (Newberry, 2019). Also, more than 40% of social media consumers use social networks to research new brands or products.

Another important aspect to consider is that 53% of businesses use social advertising. Due to technological expansion people are constantly shelled by banner advertisements on websites, social media and mobile phone. This has produced an opposite trend, as advertisements are losing their effectiveness. Thus, marketers are continuously struggling to find the best way to influence consumers whilst optimize the return on investment (ROI). Influencer marketing is one of the major strategies used by marketers to influence consumers’ willingness to buy new products and services without being perceived as annoying.

Influencer marketing occurs when companies placed their focus on specific key personalities, called influencer, which are user on social media who has established credibility in a specific industry or relating to a particular niche of interest. Influencer marketing is centred on establishing sincere and personal relationships among brands, influencers and customers through social media channels, in a perpetual sharing-cycle of honesty and authenticity.

However, it is undeniable that influencer marketing is more attractive for millennials - or generation Y - since they frequently use internet and social media. Actually, the rise of social media influencers has opened up new channels for brands to connect with consumers more directly and organically, which make this tool extremely effective.

Hence, it is vital for businesses to understand and embrace this fast transformation and gain more consciousness about customers’ attitudes towards influencer marketing as new and promising digital marketing tool.