How Influencer Marketing will Change the Business Landscape in 2023
How Influencer Marketing will Change the Business Landscape in 2023

The emergence of social media has changed the way of interaction for humans and businesses alike. In fact, using social media has been identified as one of the most common internet behavior, per a Statista survey. Globally, more than 4.26 billion people used social media in 2021, and that number is expected to rise to approximately six billion by 2027.

Earlier the means of communication for humans were restricted to the people they knew in person but now has expanded to people worldwide. Coming to businesses, social media has totally transformed how companies conduct business today. The conventional marketing methods have been taken over by modern-day methods which involve reels, blogs, vlogs, and live streaming via digital media platforms. 

The growth of influencer marketing can be attributed to the ease in the availability of the internet. In fact, the government's Digital India Initiative is another factor that has led to the growth of social media users which in turn has opened up new avenues of digital marketing. These days, influencers are nothing less than social media giants with large fan bases. This has presented a new opportunity for marketers to find the right influencer and aim for an increased reach.

Influencer Marketing: The New-Age Marketing for Businesses

Influencer marketing has undeniably changed how people think about marketing in the modern era. Not only have consumer needs evolved significantly, but so have people's habits for content consumption. According to a Mckinsey survey, Gen Z, a population of people aged 16 to 26, currently accounts for 40 percent of customers. With three hours a day spent viewing and creating content on social media, they are regarded as the most "plugged in" generation to date. This, as a result, has called up for brands to revise their marketing strategies in order to fit into new-generation needs.

However, the basic fundamentals of marketing and advertising remain the same, which include telling the right people, the right story, in the right place. But, what is the right story? Well, the story differs from brand to brand. Though native content plays a significant role in connecting with the audience as they seem to largely relate to it. Hence, for brands, it has become crucial to figure out who their target audience is and how they want them to perceive the brand.

Because buyers require multiple interactions with a company before converting, influencer marketing is an ideal platform for this. Think about seeing a print commercial for a brand-new product on the market, and then envision seeing your favorite influencer discuss it on your chosen social media site. Which of the two would have the greatest influence on you? The answer is undoubtedly the latter one because the audio-visual medium is certainly a powerful medium to engage with the audience and nothing could be better than influencer marketing for brands to achieve that. In fact, according to market enthusiasts, 61 percent of customers accept the advice of influencers, compared to 38 percent who trust promoted and frequently slanted social media content.

Ways Influencer Marketing will Change the Upcoming Business Landscape

Generates High ROI - Influencer marketing is a low-cost marketing strategy because marketers are not needed to make substantial investments. The influencer can occasionally provide specific numbers about consumer engagement and sales, which brands can use to readily track their performance in the market. In turn, this would help them create strategies that work, adjust the content the influencer represents appropriately, and pursue a higher ROI. In light of the ROI, 17 percent of businesses allocate more than half of their yearly marketing budget to influencer marketing efforts, and experts in the field predict that number will continue to grow.

Marketing without Boundaries - Influencer marketing has unlocked the marketing potential and provided brands with fresh, efficient methods of connecting with their target customers. Modern companies were constrained to their brick-and-mortar presence, which in turn limited their target market to those in the area and, as a result, narrowed down the scope of marketing. However, the emergence of influencer marketing has given brands the chance to connect with audiences globally in a more individualized way. In reality, modern consumers need a tailored buying experience. In a Mckinsey analysis, personalization is even referred to as a "hygiene factor," and if firms get it wrong, customers may switch to a competitor. Hence, it is certainly necessary for the brands to figure out the right content to be displayed by the right influencer to the right audience in the right manner.

Lead Generation - Influencer marketing has undoubtedly turned out to be a boon for businesses as it has opened new and effective ways for consumer engagement, thereby resulting in lead generation. Individuals are bound to see the product or service being reviewed by their favorite influencer as compared to when it appears on other marketing channels. This, as a result, creates more leads and benefits the brand to a great extent.

Influencer Marketing: The Future of Businesses

There is no escaping the fact that influencers have taken over all spheres of interest in our digitally-dominated world, from politics to products, cosmetics to marketing, and influencer marketing as a whole is now a key aspect influencing the strategy of contemporary marketers.

In fact, as we advance, influencer marketing is going to be seen as a primary method of marketing.  The market size for influencer marketing platforms worldwide is anticipated to reach 24.1 dollars billion by 2025, growing at a CAGR of 32.0 percent over the forecast period, according to an analysis by MarketsandMarkets. Hence, it is pretty evident that influencers are going to rule the market thereby, changing the entire business landscape for good.

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