Influence Marketing: How to Build an Effective Strategy? Part 2
Influence Marketing vs. Word of Mouth Marketing
There is ultimately an overlap between influencer marketing and word of mouth marketing, simply because both tactics seek to get other people to talk about your business.
The difference is in the relationship between the company and the person who gets the word out and speaks.
Influencer marketing usually involves an incentive (financial or otherwise) given to the influencer by a brand. The influencer talks to his followers about products or services because he or she has been rewarded for it, either with money or goods.
On the other hand, there is word of mouth marketing when people tell other people about a business because they want to share their experience.
The result is similar even if one involves compensation while the other does not.
Influence Marketing vs. Affiliate Marketing
It’s not uncommon to see influence marketing confused with affiliate marketing, especially since both entice third parties to promote an offer.
The main difference between these two tactics is that affiliates typically receive a commission when a sale is made, and influencers a flat fee that is unrelated to sales.
Affiliates are only paid when a sale is made; influencers are paid regardless of the outcome of the campaign.
Influence Marketing vs. Advocate Marketing
Another common confusion is the difference between influence marketing and advocacy marketing, and it’s easy to see why.
While influence marketing is all about motivating people who have influence over an audience, advocacy marketing is more about using brand advocates and leveraging their customers’ voices to amplify your message.
Advocacy marketing is a lot like word of mouth marketing, but you encourage brand advocates to tell your story and reward them for it, creating a real bond between the brand and the customer.
In many ways, it’s the same as influence marketing, but the real difference is that influence marketing relies on existing, happy customers telling others.
The influence marketing stats you need to know
Before we jump into building an effective strategy, here are some of the top influence marketing stats you need to know:
- Businesses earn $ 5.20 for every dollar spent on influence marketing. (Influencer Marketing Hub)
- 80% of marketers believe influence marketing is effective. (MediaKix)
- 70% of teens trust influencers more than traditional celebrities. (Digital Marketing Institute)
- 60% of influence marketing budgets are expected to increase in 2020. (BigCommerce)
- The influence marketing industry is expected to reach $ 15 billion by 2022. (Business Insider)
- 49.6% of influencers say their subscribers are most concerned about the authenticity of the content. (Zine.co)
Influence marketing is a booming market, and as a marketer you can’t ignore it anymore if you aren’t already using it.
Understanding the Different Types of Influencers
Despite what you may think, there is more to an influencer than their influencer status, and you need to know who these different types of people are to be able to strategize effectively.
We often hear about influencers specific to a platform, whether they are Instagram influencers, YouTubers or others. But their platform is in fact only the distribution channel for their content.
To really understand the different types of influencers, we need to look at micro-influencers and macro-influencers.