{"id":2726,"date":"2018-11-19T09:25:26","date_gmt":"2018-11-19T03:55:26","guid":{"rendered":"https:\/\/www.vue.ai\/blog\/?p=2726"},"modified":"2023-10-19T16:28:08","modified_gmt":"2023-10-19T10:58:08","slug":"influencer-marketing","status":"publish","type":"post","link":"https:\/\/www.vue.ai\/blog\/retail-trends\/influencer-marketing\/","title":{"rendered":"Influencer Marketing From Endorsers To Stakeholders"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69f7ce72eff12\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69f7ce72eff12\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.vue.ai\/blog\/retail-trends\/influencer-marketing\/#from-an-add-on-pr-activity-to-a-20-billion-industry-by-2020\" title=\"From An Add-On PR Activity To A $20 Billion Industry By 2020\">From An Add-On PR Activity To A $20 Billion Industry By 2020<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.vue.ai\/blog\/retail-trends\/influencer-marketing\/#influencers-are-now-ambassadors-investors-brands\" title=\"Influencers Are Now Ambassadors, Investors, Brands\">Influencers Are Now Ambassadors, Investors, Brands<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.vue.ai\/blog\/retail-trends\/influencer-marketing\/#is-influencer-marketing-a-gamble-worth-making\" title=\"Is Influencer Marketing A Gamble Worth Making?\">Is Influencer Marketing A Gamble Worth Making?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.vue.ai\/blog\/retail-trends\/influencer-marketing\/#reluctant-participants\" title=\"Reluctant Participants\">Reluctant Participants<\/a><\/li><\/ul><\/nav><\/div>\n<span class=\"rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\">6<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span><p><span style=\"font-weight: 400\">Fashion Nova, the Los Angeles based fashion retailer was one of the most <\/span><a href=\"https:\/\/www.thecut.com\/2017\/12\/fashion-nova-google-most-searched.html\"><span style=\"font-weight: 400\">searched<\/span><\/a><span style=\"font-weight: 400\"> brands on Google in 2017. It surpassed the likes of Zara, H&amp;M and KKW Beauty to become the <\/span><a href=\"https:\/\/www.businessoffashion.com\/articles\/news-bites\/influencer-marketing-lessons-from-fashion-nova-and-zara\"><span style=\"font-weight: 400\">number one<\/span><\/a><span style=\"font-weight: 400\"> best performing brand on Instagram in the first six months of 2018, according to InfluencerDB <\/span><a href=\"https:\/\/www.businessoffashion.com\/articles\/news-bites\/influencer-marketing-lessons-from-fashion-nova-and-zara\"><span style=\"font-weight: 400\">report<\/span><\/a><span style=\"font-weight: 400\">. <\/span><\/p>\n<p><span style=\"font-weight: 400\">These numbers translated into huge profits for the fashion retailer. Robert Levenhagen, CEO and Co-Founder of InfluencerDB <\/span><a href=\"https:\/\/www.businessoffashion.com\/articles\/news-bites\/influencer-marketing-lessons-from-fashion-nova-and-zara\"><span style=\"font-weight: 400\">asserted<\/span><\/a><span style=\"font-weight: 400\">, \u201cFor every dollar they (Fashion Nova) spend, they make more than one dollar of margin, and that\u2019s why they keep scaling and investing in (influencer marketing).\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400\">The fairly new brand managed the feat minus any traditional advertising strategies or big celebrity endorsements. It is a brand that was built on Instagram and still largely operates from there with the help of a network of 3000 <\/span><a href=\"https:\/\/wwd.com\/fashion-news\/fashion-features\/inside-fashion-nova-cardi-b-1202595964\/\"><span style=\"font-weight: 400\">influencers<\/span><\/a><span style=\"font-weight: 400\">. They do have physical stores but nothing can beat the visibility of Fashion Nova on Instagram, thanks to its army of influencers that now includes big names like rapper Cardi B and reality star Kylie Jenner. <\/span><\/p>\n<img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-2730\" src=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/11\/Screenshot-2018-11-12-at-1.04.00-PM.png\" alt=\"\" width=\"750\" height=\"541\" srcset=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/11\/Screenshot-2018-11-12-at-1.04.00-PM.png 830w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/11\/Screenshot-2018-11-12-at-1.04.00-PM-300x217.png 300w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/11\/Screenshot-2018-11-12-at-1.04.00-PM-768x554.png 768w\" sizes=\"(max-width: 750px) 100vw, 750px\" \/>\n<p><span style=\"font-weight: 400\">The success of Fashion Nova speaks volumes about the power of influencer marketing in today\u2019s day and age. It has become one of the most effective mediums to increase organic reach and earn profit. <\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"from-an-add-on-pr-activity-to-a-20-billion-industry-by-2020\"><\/span><b>From An Add-On PR Activity To A $20 Billion Industry By 2020<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400\">Influencer marketing is the result of the penetration of internet, emergence of online retail and growth of social media. Between 2011 and 2014, the traditional format of influencers existed, which was brand Public Relations. The brand\u2019s PR agency approached bloggers and \u2018gifted\u2019 products. In return, they requested these bloggers to write about their products without being paid for the content. <\/span><\/p>\n<p><span style=\"font-weight: 400\">From 2014 onwards, YouTube, Facebook and Instagram picked up as content platforms, which gave birth to creators. These creators willingly invested their time, energy and money into making videos, stories and posts for viewers. And brands soon sensed the potential of YouTube and Instagram creators as \u2018social media influencers\u2019. But traditional PR didn\u2019t work on these platforms because creating videos is far more demanding in terms of effort required than a shout-out in a blog-post. Hence, the demand for money flowed in. <\/span><\/p>\n<p><span style=\"font-weight: 400\">The unpaid from paid transition of promotions via social media was also made possible due to the intervention of trade governing bodies like the Federal Trade Commission (<\/span><span style=\"font-weight: 400\">FTC<\/span><span style=\"font-weight: 400\">) and ASA. These associations brought accountability and streamlined the influencer marketing industry. The UK\u2019s advertising regulatory board ASA <\/span><span style=\"font-weight: 400\">laid out<\/span><span style=\"font-weight: 400\"> clear rules and guidelines for influencers to make social media posts more transparent. It demanded influencers to embrace accountability and disclose if the content put out by them is a \u2018paid collaboration\u2019 or an \u2018ad\u2019. <\/span><\/p>\n<p><span style=\"font-weight: 400\">Industry insiders believe that the influencer marketers industry is <\/span><a href=\"https:\/\/uk.news.yahoo.com\/apos-influencer-marketing-apos-could-122200131.html\"><span style=\"font-weight: 400\">expected<\/span><\/a><span style=\"font-weight: 400\"> to reach $10 billion in the next two years. Brittany Hennessy, author of Influencer: Building Your Brand in the Age of Social Media affirmed that the industry size is only going to get bigger with time and the <\/span><a href=\"https:\/\/uk.news.yahoo.com\/apos-influencer-marketing-apos-could-122200131.html\"><span style=\"font-weight: 400\">reason<\/span><\/a><span style=\"font-weight: 400\"> for this is, \u201cIt&#8217;s people that are the target demographic talking to the target demographic. And that&#8217;s what makes influencer content so much different than something a brand would make. Nobody&#8217;s blocking influencers \u2014 they&#8217;re opting-in to that. We&#8217;re now in the land and era of opt-in. And people opt-in to follow these influencers because they like the content.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400\">PwC\u2019s holiday shopping <\/span><a href=\"https:\/\/www.pwc.com\/us\/en\/retail-consumer\/assets\/pwc-2018-holiday-outlook-final-report.pdf\"><span style=\"font-weight: 400\">report<\/span><\/a><span style=\"font-weight: 400\"> stated that nearly 55% to 64% of millennials pay attention to influencers with like-minded interests whose lifestyles they aspire to imitate. 55% of Gen Z consumers follow influencers on social media. <\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"influencers-are-now-ambassadors-investors-brands\"><\/span><b>Influencers Are Now Ambassadors, Investors, Brands<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400\">Needless to say, the popularity of influencers has opened up new business avenues for them. From mere promotional tools, they have transformed into brand ambassadors, investors and independent brands themselves. <\/span><\/p>\n<p><span style=\"font-weight: 400\">Take for instance, Huda Kattan. The American and now Dubai-based make-up artist, started out as a blogger in 2010. By 2013, she had launched her own make-up line Huda Beauty. She now has over 28 million followers on Instagram and in considered as one of the most influential people in the beauty industry. Kattan\u2019s beauty empire is worth $1 billion and the company\u2019s product shelves &amp; revenue is doubling each year. <\/span><\/p>\n<p>&nbsp;<\/p>\n<img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-2729\" src=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/11\/Screenshot-2018-11-12-at-1.03.23-PM.png\" alt=\"\" width=\"750\" height=\"542\" srcset=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/11\/Screenshot-2018-11-12-at-1.03.23-PM.png 821w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/11\/Screenshot-2018-11-12-at-1.03.23-PM-300x217.png 300w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2018\/11\/Screenshot-2018-11-12-at-1.03.23-PM-768x555.png 768w\" sizes=\"(max-width: 750px) 100vw, 750px\" \/>\n<p><span style=\"font-weight: 400\">The appeal and recall value of influencers is such that luxury brands are now appointing them as ambassadors. London-based beauty blogger Victoria Claire Magrath\u2019s first project was to create a video for L&#8217;Or\u00e9al hair spray. And now she is the brand ambassador of L&#8217;Or\u00e9al to promote their products. Magrath is also the brand ambassador of Feelunique, Thomas Sabo and Ted Baker. <\/span><\/p>\n<p><span style=\"font-weight: 400\">Brand ambassadors are usually big celebrity names from across industries such as entertainment, sports, and fashion with meaningful body of work, which guarantees immediate recognition. For comparatively common faces like influencers to become brand ambassadors is a huge leap for all the parties involved and an indicator of changing times. <\/span><\/p>\n<p><span style=\"font-weight: 400\">The tribe of influencers turned investors too is steadily increasing. Indie brands with a great line of products but a tight budget have found an effective marketing strategy in the form of influencers. They are now investing in indie brands and are becoming stakeholders like bloggers Leandra Medine and Arielle Charnas, who recently invested in natural makeup brand Kosas. <\/span><\/p>\n<p><span style=\"font-weight: 400\">Looking at the impact of an influencer\u2019s post on sales of a brand, it was the next logical step to demand\/grab their share of revenue and equity. For example, one Instagram stories post of Arielle Charnas about luxury active-wear brand Bandier <\/span><a href=\"https:\/\/www.businessoffashion.com\/articles\/professional\/is-arielle-charnas-the-future-of-fashion\"><span style=\"font-weight: 400\">generated<\/span><\/a><span style=\"font-weight: 400\"> $207,000 in sales, that too in just four hours! <\/span><\/p>\n<p><span style=\"font-weight: 400\">\u201cIt\u2019s not just a paid, sponsored post. It\u2019s partly mine\u2026 I said I invested in these companies because I use these products every day and I believe in the product\u2026and I want to be involved in the growth of the brand. I give [followers] the heads up that it\u2019s going to be something promoted on my account all the time,\u201d Charnas said while speaking about the brands she has invested in (source: BoF article on Influencers are Investors now). <\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"is-influencer-marketing-a-gamble-worth-making\"><\/span><b>Is Influencer Marketing A Gamble Worth Making?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400\">As it is relatively a new industry, brands could find it hard to measure the effectiveness of such promotional activities. It is also difficult to gauge how much is too much\/little and what guidelines to present to a creator that doesn\u2019t sound like interfering. On the other hand, influencers are trying to figure out as to how they can differentiate their services, ask for what they are worth for and then justify it. <\/span><\/p>\n<p><span style=\"font-weight: 400\">It takes certain amount of gumption and conviction to surrender to social media influencers when you can\u2019t see the final outcome. When Nike approached YouTuber Casey Neistat to make a movie\/ad for them back in 2012, Neistat suggested that he\u2019ll use the money to travel across the world with his friend, instead. Talented filmmaker that he is, Neistat did make an <\/span><a href=\"https:\/\/www.youtube.com\/watch?v=WxfZkMm3wcg\"><span style=\"font-weight: 400\">inspirational travelogue video<\/span><\/a><span style=\"font-weight: 400\"> of a little over four and a half minutes that strategically featured Nike shoes and has amassed 28 million views. But as a brand, it must have been a gamble to give an influencer bag full of money just to travel.<\/span><\/p>\n<p><iframe loading=\"lazy\" title=\"Make It Count\" width=\"1778\" height=\"1000\" src=\"https:\/\/www.youtube.com\/embed\/WxfZkMm3wcg?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><\/iframe><\/p>\n<p><span style=\"font-weight: 400\">The decision to use a micro or macro influencer or both also poses a dilemma for brands. Micro influencers offer great return-on-investments (ROI) as they have a niche audience and act as brand advocates. On the other hand, macro influencers offer instant exposure and great reach. <\/span><\/p>\n<p><span style=\"font-weight: 400\">There are, of course, tools to measure the effectiveness of an activity. On Instagram, people can see how many people \u2018swiped up\u2019 and opened the link, user engagement status in terms of likes, visits and comments. There are agencies that analyze data to match right brands with right influencers. But when compared to traditional marketing mediums, the influencer industry is still on a lookout for measuring tools that would provide actionable stats.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"reluctant-participants\"><\/span><b>Reluctant Participants<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400\">Influencer marketing is real, valid and relevant. But are brands and consumers reluctant participants because of the general lack of belief and respect, in spite of huge visible user engagement?<\/span><\/p>\n<p><span style=\"font-weight: 400\">Earlier this year, the owner of Dublin-based hotel The White Moose Caf\u00e9 <\/span><a href=\"https:\/\/jezebel.com\/the-blogger-drama-at-white-moose-cafe-has-escalated-1822383126\"><span style=\"font-weight: 400\">shamed<\/span><\/a><span style=\"font-weight: 400\"> YouTuber Elle Darby for asking for a free stay in exchange of publicity. The owner Paul Stenson went on to declare that all bloggers are banned from his property. Vogue editors too criticized bloggers for \u2018heralding the death of style\u2019 that <\/span><a href=\"https:\/\/www.campaignlive.co.uk\/article\/vogue-blogger-backlash-underlines-disconnect-media-owners-influencers\/1411073\"><span style=\"font-weight: 400\">drew sharp reaction<\/span><\/a><span style=\"font-weight: 400\"> from the influencer community. <\/span><\/p>\n<p><span style=\"font-weight: 400\">Consumers too often complain about paid promotions and how influencers are making easy money without working hard for it.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Victoria Magrath explained this in Blogosphere <\/span><a href=\"https:\/\/www.blogosphere.biz\/podcast\/inthefrow\/\"><span style=\"font-weight: 400\">podcast<\/span><\/a><span style=\"font-weight: 400\">, \u201cIt is almost as if \u2018likes\u2019 have become currency. I almost see as people feel as if they are losing every time they \u2018like\u2019 a picture. So if someone has put up an ad, regardless of how gorgeous it might be and well-edited or like beautiful\u2026, they are so reluctant to hit \u2018like\u2019 because they don\u2019t want to support the fact that this person might be paid for it.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400\">Agreed, that the industry needs to be filtered diligently as the number of fake followers or bots has considerably increased in the past few years. The percentage of unethical influencers too has increased as more and more people discover this industry as a source of revenue. But isn\u2019t it too soon to declare it as a bubble that might burst soon?<\/span><\/p>\n<p><span style=\"font-weight: 400\">Celebrity endorsements have been part of the marketing industry for decades. The difference is that now more relatable faces are being added to the industry. Influencer marketing has given rise to brand ambassadors that are not only influential, and aspirational, but also approachable and achievable.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\">6<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span> Fashion Nova, the Los Angeles based fashion retailer was one of the most searched brands on Google in 2017. It surpassed the likes of Zara, H&amp;M and KKW Beauty to become the number one best performing brand on Instagram in the first six months of 2018, according to InfluencerDB report. These numbers translated into huge  &#8230;<\/p>\n","protected":false},"author":23,"featured_media":2731,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1523,1161],"tags":[166,138,167],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Influencer Marketing From Endorsers To Stakeholders | Vue.ai Blog<\/title>\n<meta name=\"description\" content=\"Influencer marketing has given rise to brand ambassadors that are not only influential, and aspirational, but also approachable and achievable.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.vue.ai\/blog\/retail-trends\/influencer-marketing\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" 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