The most popular and powerful marketing strategy for brands and markets these days is influencer marketing. And social media is becoming a crucial way for brands to reach their enthusiastic audience.
An academic study by Shupei Yuan and Chen Lou found, “that followers of an influencer regard their sponsored posts to be a genuine recommendation that leads to message credibility that can rub off positively on an endorsed brand”.
People trust the information shared by the influencers and are more likely to purchase the product advertised by the influencer marketing in comparison to others. It’s hard to scroll through social media without seeing the promotion through endorsements from influencers.
Influencer marketing is a hot topic and major firms are planning to increase their influencer marketing budget. As social media platforms grow, influencer marketing to is going to be more popular because of its content as well as transparency in showing the reality. It is helping brands in building awareness and facilitating the lead generation, the key is to understand the influencer landscape and platform to connect.
Brands are planning to meet their customers where they are, and Metaverse is going to be the next generation of the internet that will change the experience of internet users.
“The influencer marketing sector is expected to reach nearly 13 billion euros in 2022 and the Metaverse market will exceed 700 billion euros by 2024,” according to forecasts.
Data shows that Metaverse is blowing up on the internet and becoming a necessity for all brands to reach, engage and nurture their customers.
According to a recent report by Statista, “Virtual marketing events are expected to dominate 40 percent of the global events industry this year”. And because of the large dependency on online platforms, there is a rise in building virtual communities, attending exhibitions, and customizing virtual places making social media the most desirable platform for promoting brands.
There is a lot to unfold in this world of virtual transactions where more than half of the population is spending more than 2.25 hours daily on different platforms like YouTube, TikTok, Facebook, and Instagram. The question to ponder upon is the engagement of customers with influencers associated with the brand in the virtual world.
Influencer marketing is going to be more effective for brands as their target audience is already planning to be a part of this digital world ‘Metaverse’.
Virtualhumans.org has already shared that, “there are already 150 virtual influencers doing brand collaborations and engaging with customers on daily basis”, and participating in market campaigns of well-known brands like Prada, Dior, Calvin Klein, and more.
There is a rise of AI influencers or meta–influencers over social media trying to engage customers with deep and valuable content which is helping the brand to expand its global presence through a Metaverse. Many brands have already taken a lead using social outreach of influencers to grow like Coca-Cola and Gucci that have been selling their products through NFTs. The major advantage this Metaverse provides influencers to have is a successful event that is customized, personalized, and appealing to their target audience in the comfort of their home, the nine-minute concert by Travis Scott, and the surprise appearance by Angelababy reveal the popularity of this new trend.
According to reports, “It is estimated by 2022, brands will spend as much as $15 million annually on influencer marketing, some of which are expected to be spent on virtual influencers”.
And the study by IZEA Worldwide expresses promising data which ensures that influencer marketing is going to be the most effective strategy. Its data revealed that “70 percent of influencers think the Metaverse will replace social media, 56 percent of social media influencers work in the Metaverse, 60 percent of them want to be creators in virtual worlds, 72 percent say they are considering or already making money in the Metaverse, 49 percent would like to be paid in Bitcoins if they made money in the Metaverse, 85 percent have played virtual world games like Minecraft and Fortnite, 90 percent of influencers support brand sponsorship in virtual world games.”
On one end where brands are planning multiple launches of the products to attract more and more customers, there is a need to design strategies to overcome the challenge of fraudulent activities over social media or payment issues. An ecosystem encompassed with hotbeds of influencers, crypto room, NFT gallery, and other features will enable to attract more long-term customers. Though the Indian market is going to have 900 million digital users by 2025, what is going to be the growth strategies for brands in the Indian market and the future of influencer marketing in the Metaverse is still uncertain.