Social media revolutionising business advertising.
Over the past few years, ‘Influencers’ have taken social media platforms by storm, flooding our newsfeeds with content promoting products and brands to the public.
Through the growth of social media, a business platform has been developed that allows for companies to reach a wider audience that is cheaper than other traditional forms of advertisement.
Social media coordinator, content creator and director, Adelaide Hawkins, says that most businesses use social media as a cheap selling platform to access a larger audience.
“There are billboards, newspapers and TV advertisements, but they are so expensive. Social media is a free way of advertising and marketing. It’s created this world where anyone can promote themselves for free,” Hawkins said.
In terms of promoting brands and companies, ‘influencers’ provide an additional, more specific target demographic, based on what product or service is being advertised.
An ‘influencer’ refers to someone with a large following, usually due to the kind of content that they share or the way that they interact with their following.
“Influencers are so influential because you think you know them, so you trust them, and then when an influencer creates or promotes a product, their supporters want to buy the same product based off of that connection,” said Hawkins.
In an article called ‘this is how much instagram influencers really cost’, Lexi Carbone says that instagram influencer partnerships are the best performing platform for companies to have a widespread effect amongst audiences with an average of 3.21% engagement rate, compared to only 1.5% through all social networks.
“On Instagram in the last year and a half, its turned into this world where everyone is just interacting and it’s kind of like ‘the’ place to go now to promote things because it’s what most people use now-days,” Hawkins said.
Lisa Stark, chief operating officer of marketing and digital strategy, says that the influencer approach to business and product promotion is widely popular due to being in style and attractive to the public.
“Influencers can increase audience awareness or create demand for a product or service by displaying it and making it ‘cool,’ or ‘desirable’ or the ‘next trend’. This drives customers to buy or investigate,” Stark said.
According to influencer marketing hub, the influencer marketing approach is estimated to become an eight-billion-dollar industry by the end of 2020. This kind of business approach is now close to replacing traditional forms of advertising on social media.
Although this rapid progression of social media use as a marketing platform benefits companies greatly when reaching a wider audience, it can also cause serious issues in the spread of negative information.
Stark says that through the use of social media, companies and brands can benefit a great deal, however there is always a possibility of risk if negative reviews and comments circulate online.
“In a negative sense, social media is also dangerous for a business. If a company has an inferior product or a newsworthy event, literally thousands of people can find out in minutes. Sales can plummet because a company is caught cheating workers or causing an environmental problem. That, or the product does not live up to expectations,” Stark said.
Despite the risks involved, social media advertising has been proven to assist in reaching out to a larger population, especially with smaller companies.
More than 50 million small businesses now use social media as a platform to reach their customers, with the number increasing daily.
71% of customers who have had a good experience with a brand on social media, are more than likely to recommend the company to their friends and family. This gives businesses further promotion.
For smaller companies who may not be able to afford other forms of advertising, consumers recommending their products to others would be extremely valuable.
“For a small business, social media posts definitely have a major impact as it’s a really cheap form of getting your product ‘out there’ generally to a wider audience. If they then have happy customers, they would usually go and promote the product further,” said Stark.
The inclusion of social media into business strategies, relies heavily on the trending apps and websites. This means that there will most likely be a drop in social media marketing, in the years to come.
“Social media and influencers will have a place until the ‘next big thing’. Influencers will need to build a lot more substance to continue to have big impact, and to continue being successful in that area,” said Stark.
Although eventually becoming out-dated, the industry is currently widely popular and developing rapidly, with more companies and people using social media platforms on the daily.