5 Reasons Why Influencer Marketing Is Becoming a Big Trend In Business in 2023
5 Reasons Why Influencer Marketing Is Becoming a Big Trend In Business in 2023. Influencer marketing has taken the world by storm. In 2023, it’s making an even bigger splash in the business realm. 67% of marketers are planning to increase influencer marketing spending this year. Businesses are turning to influencers to capture attention, build credibility, and forge genuine connections with consumers, no matter the niche or scale.
So what makes this marketing strategy such a popular trend for global brands in 2023? Buckle up as we uncover the five reasons behind the meteoric rise of influencer marketing in the business sphere.
Trust Revolution: Influencers continue to gain trust over traditional ads
Today’s consumers are too smart to trust shiny, picture-perfect ads. They crave authenticity, honesty, and integrity from brands they shop with. Influencers are the type of individuals who can help businesses project these qualities.
People place greater trust in influencers because they share genuine experiences that resonate with their audiences. That’s what makes their recommendations more impactful and credible. 33% of Gen Z consumers have bought a product based on an influencer’s cue in the past three months alone.
How to leverage this trend
- choose influencers carefully. Work with influencers with aligned values, niches, and target audiences. For example, an eco-friendly brand should collaborate with a sustainability-focused influencer for a genuine connection;
- encourage influencers to share honest opinions and experiences with your products. Instead of scripted testimonials, consider reviewing videos detailing product pros and cons. It helps reinforce brand credibility and trust among your target audience;
- Involve influencers in your brand’s story through events, behind-the-scenes experiences, or product development. It deepens their connection and boosts endorsement authenticity.
Mighty Micro: Small-scale influencers have a big impact
Nano- and micro-influencers are those with a relatively smaller but dedicated following. They are at the bottom of the influencer tier classification based on the number of social media followers:
- Nano-influencers: 1,000–10,000 followers
- Micro-influencers: 10,000–50,000/100,000 followers (depending on the classification)
- Mid-tier influencers: 50,000/100,000–500,000 followers
- Macro-influencers: 500,000–1 million followers
- Mega-influencers (celebrities): 1 million+ followers.
It may seem counter-intuitive, but smaller-scale content creators are now gaining traction in the influencer marketing landscape. Compared to mega-influencers, they can boast higher engagement rates and a more loyal audience. Besides, collaborations with small-scale influencers are more affordable. In 2023, nano- and micro-influencers will be increasingly important in marketing strategies.
How to leverage this trend
- collaborate with nano- and micro-influencers from your area who work in your niche. They will be more interested in your brand, and you can engage them both in online and offline marketing campaigns;
- look for influencers among your social media followers. Maybe several content creators are already following your brand and would like to collaborate;
- co-create content. Involve micro-influencers in the creative process. It will allow them to produce content that resonates with their audience and showcases your brand in an authentic light;
- foster long-term relationships. Establish ongoing collaborations to maximize the benefits of their profound connections with followers. This way, your brand, and the influencer will successfully grow together.
Example: Popular lifestyle nano-influencer Kalan Laws works with young brands he loves, such as Ethical Fashion. Together, they engage wider audiences, spark interest in new consumers, and create authentic content.
Video Content Takeover: Influencers conquer visual storytelling
It’s no secret that video content is the most appealing content format for social media users. According to the 2022 Cisco report, 82% of global Internet traffic came from videos last year. This tendency is still relevant in 2023.
Influencers have embraced the world’s obsession with video and made it work for them (and, by extension, for brands). Content creators focus on this format because it ensures:
- Enhanced engagement. Videos capture attention, encourage interaction, and keep audiences entertained while bringing them closer to brands;
- visual storytelling. The format allows influencers to showcase products and services in a more vivid, immersive manner;
- platform diversity. Video content thrives on platforms like TikTok, Instagram, YouTube, and Facebook.
How to leverage this trend
In your influencer marketing campaigns, make sure to explore the following:
- Format variety. Ask influencers to create diverse video content, like popular TikTok UGC videos, Instagram Reels, or longer-form content on YouTube. Influencers stay on top of trends and can make your marketing video content go viral;
- Creative storytelling. Collaborate on unique, innovative concepts that align with your brand message and the influencer’s content style;
- Product demonstrations. Use video to showcase product functionality, benefits, and use cases in an easily digestible format. Or turn to popular unpacking/unboxing videos for a more engaging experience;
- Tutorials and how-tos. Partner with influencers to create informative, educational content demonstrating the effective use of your product or service.
Example 1: DuoLingo is the master of viral video content on social media. The brand regularly engages influencers in the creative process to capitalize on memes, popular celebrity news, and more. This video with an NYC influencer Xiao Ma has gathered almost 192,000 likes on TikTok:
Example 2: Kim Kardashian’s clothing brand Skims leverages influencer unboxing and try-on haul videos on YouTube and other platforms. This video content helps the brand promote its products and encourages more and more women to shop with Skims. In the video below, fashion/lifestyle influencer Mollie Campsie tries on several Skims staples:
Influencer Matchmakers: Platforms streamline influencer collaborations
2023 is also the year when you don’t have to do the heavy lifting and manually search for influencers to fuel your social media marketing efforts. Some specialized platforms offer brands a more efficient way to find the perfect match for their marketing campaigns.
Influencer marketing software has revolutionized influencer collaborations and made them even more accessible by:
- Automating influencer search. Now your brand can find suitable content creators on social media and for any campaign in seconds. Advanced search algorithms and filters ensure the right pick;
- Vetting influencers so you don’t have to. Influencer tools have verified databases, so you can be sure the creators you choose are legit and have real followers;
- providing campaign analytics in real-time. You can monitor key performance indicators (KPIs) like reach, engagement, click-through rates, and conversion rates;
- generating campaign reports. You can see the results of your influencer marketing campaign and optimize your future collaborations based on these insights.
All these features make influencer marketing platforms a total game-changer in the marketing industry. They’re bringing influencer partnerships to the forefront of digital marketing strategies in 2023.
How to leverage this trend
You guessed it right – streamline your campaign with the help of influencer marketing tools! No matter your niche, budget, or campaign type, you can find a reliable platform to suit your needs.
Example 1: Upfluence is one of the top influencer marketing platforms. It simplifies influencer discovery, relationship management, and campaign tracking. Its top features include a database of 4+ million influencers, advanced search filters, audience demographics analysis, and performance analytics. Upfluence helps brands create effective, data-driven influencer campaigns with ease:
Example 2: InBeat is an influencer search engine specializing in nano- and micro-influencers on TikTok and Instagram. A more narrow focus makes this platform a perfect search engine for marketers interested in collaborating with smaller-scale content creators. InBeat features a database of 15,000+ influencers and has cool extra features such as an Instagram money calculator, TikTok engagement rate calculator, and fake follower checker:
E-commerce Harmony: Influencers and e-commerce drive sales hand-in-hand
Another reason influencer marketing is becoming more and more important is its contribution to e-commerce. In 2023, the collaboration between influencers and e-commerce will reach new heights, with both elements driving sales hand-in-hand.
As social media and digital marketplaces are steadily merging, influencers play a crucial role in showcasing products and guiding consumer decisions, ultimately boosting brand sales. Bringing e-commerce and influencer marketing together ensures:
- Increased online shopping. The rise of e-commerce means more consumers are making purchases online, and influencers (as you’ve seen in point 1) have a significant impact on buying decisions;
- Seamless shopping experience. Influencers can create engaging content that showcases products and provides a direct link to purchase, making shopping easy for consumers;
- Higher conversions. Influencers who genuinely connect with their audience can build trust and drive higher conversion rates for e-commerce brands.
How to leverage this trend
As an e-commerce brand, you can explore the following:
- Shoppable content. Encourage influencers to create content that features shoppable links on social media. The links will make it easy for their followers to purchase the products they’re promoting;
- Exclusive discounts and promo codes. Provide influencers with unique discount codes and affiliate links to share with their audience, incentivizing purchases and driving sales;
- influencer-curated collections. Partner with influencers to create exclusive product collections. Influencers can share their picks and recommendations with their followers based on their preferences;
- collaborative product launches. Involve influencers in launching new products, leveraging their reach and impact to generate buzz among your target audiences.
Example 1: A renowned watch brand Breda has collaborated with popular content creator Taylor LaShae to launch an exclusive watch collection:
Example 2: Clothing fashion e-retailer Shein collaborates with numerous lifestyle, fashion, and wellness influencers to promote the brand. Influencers have unique promo codes they share with followers to encourage more people to shop with Shein:
It’s safe to say that influencer marketing will dominate the marketing landscape in 2023. With shifting consumer trust, the rise of micro-influencers, increased focus on video content, specialized platforms, and the blend of social media and e-commerce, influencer impact will keep rising.
Brands that recognize and adapt to these trends can create authentic connections with their audiences, boost their online presence, and generate higher sales. So, stay ahead of the curve and embrace the power of influencer marketing. It’s the go-to tool to make a lasting impact on your target audience.
David Morneau is the co-founder and CEO of inBeat, a hybrid micro-influencer marketing SAAS/agency that helps brands scale their marketing efforts. He has helped over 200 DTC brands to date.
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