Chapter 2
In This Chapter
Seeing where marketing started
Understanding how influencer marketing came about
Looking at the future of influencer marketing
Determining whether influencer marketing is paid, owned, or earned media
All successful marketing or advertising is reliant on influence. Brands want to influence consumers to become aware of, consider, and eventually purchase their products. Consumers are influenced by all manner of brand communications, whether from the brand directly through traditional advertising (TV ads, print ads, online display ads, radio spots, and so on) or from word-of-mouth endorsements from friends and family.
The entire marketing ecosystem is dependent on influence. But in our current advertising-everywhere climate, where consumers are constantly bombarded with brand noise and competing messaging, who gets heard? How do consumers decide who to listen to? Who actually wields the power to influence?
We answer all those questions in this chapter. But before we talk about influencer marketing, let’s go back a bit and look at what let up to influencer marketing.
Influencer marketing is a relatively new form of marketing, but it has its roots in the earliest days of public relations. In this section, we give you a quick tour of the history that led up to influencer marketing.
“Let’s get people talking about us!” That’s the goal of all public relations (PR). PR firms have existed since at least the year 1900, serving as something of the right hand to advertising’s left. For decades, the distinction between the two was easy to understand: Advertising was something you paid for, and publicity was something you earned.
The job of a PR agent is to build awareness for her client by “earning” it, which means creating press or buzz that builds organically. For example, a PR agent representing a new line of organic makeup might pitch editors at beauty magazines. She sends the editors makeup samples along with information about the products in the hopes that the editors will love what they get. If the editors love the products, they might feature the makeup line in an unpaid, editorial section of the magazine — in other words, an article. Maybe the founders of the new makeup line will be featured in an article about industry innovators. Or maybe one of the products will make it onto an “Editor’s Picks” list, featuring the best new products on the market.
Landing a feature in the Editor’s Picks list is earned placement: The cosmetics company didn’t pay for it — they earned the respect of the magazine editors based on the merits of their product. You can imagine how much this type of endorsement would mean for a brand! A glossy ad in a magazine might grab a reader’s attention, but the reader might not believe the ad’s claims. After all, the reader knows the ad was designed by advertising professionals, and she knows the cosmetics company paid for it. On the other hand, she loves the Editor’s Picks list. She trusts that the editor spent time and effort considering which products to include on that list and recognizes the editor as an authority in the industry. She may even tear out the list and bring it with her the next time she goes shopping for makeup. She’ll definitely try this product.
This is essentially how press mentions have worked for years. Magazine editors at all kinds of publications receive press releases and products every day from people who want their clients, companies, brands, products, or ideas noticed. They want to be written about favorably by authoritative figures who readers trust.
If you see a flyer for a new café that just opened downtown claiming to serve “the best sandwiches ever,” you may or may not believe the café’s claim. Of course the café is going to say that, right?
But what if your best friend tells you he just ate “the best sandwich ever” at the new café downtown? Not only would you be more likely to believe his claim, but you might make a point to remember the café’s name and consider it the next time you’re eating lunch nearby.
That’s word-of-mouth marketing at its most basic: People trust recommendations from friends and family. Friends and family influence our purchasing decisions. Word-of-mouth recommendations are incredibly effective.
Unfortunately, brands face two great challenges when trying to generate great word of mouth:
As brands tried to solve for these challenges, they planted the seeds for today’s influencer marketing.
Blogging was the foundation of social media, but it took several years and many failed attempts for PR professionals to truly understand how working with bloggers could revolutionize word-of-mouth marketing. At first, it was just kind of messy.
Blogging came to prominence in the United States at the turn of the 21st century. Political blogging gained traction and credibility during the tumultuous post-9/11 era, when bloggers began covering the news in ways traditional media outlets weren’t (ironically, becoming newsworthy themselves in the process). In the first few years of the century, blogging ushered in a new era of Internet usage:
www.gawker.com
), which launched in 2002, were instantly popular.www.wordpress.com
) and Blogger (www.blogger.com
), two popular blog platforms still widely used today, were launched in 2003. They allowed people to publish blogs without needing to know how to build or design a web page.By 2005, The New York Times reported that more than 30 million Americans were reading blogs regularly. Advertisers and PR professionals took notice. A whole new world had opened up to these industries. Almost overnight, a new way of reaching consumers had come into existence. Instead of having to work with the editors in charge of print or online publications, PR agents could work directly with prominent bloggers directly.
So they tried.
On the surface, blogs didn’t look much different from traditional media. Instead of magazine editors, there were bloggers. Instead of print circulation numbers, blogs had daily or monthly visitors. And just like traditional publications, blogs focused on specific, sometimes niche topics that made it easy to target the right client with the right publication.
Except it turned out that blogging is actually vastly different from traditional press, for many reasons — reasons that PR professionals learned the hard way. Because, despite the fact that blogging was a truly new online medium (with so many possibilities for changing traditional PR), most PR agencies managed bloggers and blogger outreach exactly the same way they’d been managing press outreach for decades. And it didn’t work very well:
Because of this, most of the first PR pitches to bloggers fell on deaf ears, went unanswered, or (worst of all!) were published on public blogs and circulated among bloggers as what not to do. When a well-respected tech blogger known for her childfree, vegan lifestyle was approached by a meat company touting child-friendly recipes, you can bet she posted that pitch on her blog!
Of course, PR reps and brands eventually learned how to win favor with bloggers. And those early mistakes paved the way for what would eventually become influencer marketing.
Influencer marketing is the result of influencers and PR agencies refining how they work together to harness the power of social media. In this book, we show you how, when done correctly, influencer marketing is far more effective, controllable, measurable, and exciting than traditional approaches to word-of-mouth marketing.
Influencer marketing is the art and science of engaging people who are influential online to share brand messaging with their audiences in the form of sponsored content.
Let’s break down the definition of influencer marketing and dig a little deeper:
“The art and science of engaging people …”: What makes influencer marketing so special is that it’s about engaging real people. The Internet in general, and social media platforms in particular, have made it easy for anyone to be an expert or build a community over which she has influence. Influence is no longer the sole territory of celebrities, newscasters, athletic stars, politicians, big brands, or publications.
The challenge is that real people aren’t necessarily marketers. They aren’t companies. They aren’t even press. Real people don’t tend to have professional relationships with brands.
So, brands and marketers can’t reach out to real people to engage with them the way they would reach out to magazine editors. Instead, they have to approach real people in a human way.
Plus, influencer marketing is a boon to the influencers themselves. Unlike back in the early days of blogging, when a blogger’s only hope for revenue came from banner ads over which she had no creative control, today anyone who has developed an online audience can expect to work with brands collaboratively, and to be paid accordingly for their work.
In some ways, influencer marketing seems like the next generation of celebrity endorsements — except instead of glossy ads, we’re talking about endorsements that occur online and through social media. But the difference between the old and new world of endorsements isn’t just a matter of technological advances: Audiences everywhere are far more media savvy today than they ever were, and the success of online influencers is dependent on their transparency and authenticity.
Celebrities aside, most people who’ve grown to be influential online have done so because they connect to their audiences in genuine ways. They tell honest stories, share real-life photos, and make videos that resonate with everyday people.
There are two primary misconceptions about what influencer marketing is or should be. We tell you what influencer marketing is not in the following sections.
An influencer marketing program will only be successful if the influencers are allowed to do what they do best: Connect with their audiences. The more authentic the brand allows an influencer to be, and the more freedom an influencer has to share brand message in her voice, the more the message will resonate with the influencer’s fans. The more scripted or forced the message becomes, the less effective it will be.
When your friend is recommending the new café downtown, he uses his own language, his own unique way of communicating with you:
“Dude, I just had the best sandwich ever at that new place on the corner of Main. I’m not sure what they put in it, but the melted cheese was the best I’ve ever had. You gotta go! Oh, they gave me a coupon, too! Want one?”
Now imagine if, instead, your friend spoke like this:
“Did you know that Melt, the new café on Main Street, is open for business? Come on in and try one of their new lunch melts, available in four varieties! It’s an excellent spot for lunch with the guys, or for a quick bite when you’re on-the-go. Outdoor patio available! Here’s a coupon, good through the end of next week!”
You’d be put off if your friend started speaking in what’s obviously marketing-ese. It’d feel uncomfortable and weird — and you’d wonder what the heck had happened to your pal. The same goes for influencer marketing. People aren’t engaging on social media to be sold something or to interact with scripts. People use social media to be social.
People who are new to online sponsorships and the world of influencer marketing are often skeptical. They think that brands that engage with influencers are paying influencers to post positive reviews or say things they don’t mean. The good news is, that’s not how it works.
First, brands that work with influencers do usually offer compensation, but not in exchange for positive reviews. Influencers are compensated for the work that they’re being asked to do. Entering into an agreement with a brand, receiving a product, trying it out in real life, taking photos of it, and writing a blog post that is even-handed, true to the influencer’s voice, and valuable to the brand takes time.
The entire world is connecting online through social media, so we’re seeing a convergence of PR, marketing, advertising, and digital and social media. Influencer marketing is on the forefront of this convergence, because it straddles aspects of all these media formats. More excitingly, influencer marketing has a huge potential for growth!
We’re currently experiencing all of the following:
Platform explosion: Blogging has changed considerably since it rose to prominence in the early 2000s. Long-form storytelling isn’t as popular as it used to be, but that doesn’t mean blogs aren’t still popular. In fact, some of the world’s most popular websites started off as blogs, and still feature regularly updated stories, memes, and articles from their original authors (think The Huffington Post, ScaryMommy.com
, or Mashable). Ree Drummond (a.k.a. The Pioneer Woman) began as a blogger, and she has now written several best-selling cookbooks, is a renowned photographer, and has her own series on The Food Network. She still maintains her “storytelling” content in addition to her lifestyle guides.
But blogs aren’t the only platform in town. Today we have established platforms like YouTube, Twitter, Facebook, Instagram, and Pinterest, and newer video-based formats like Vine, Snapchat, and Periscope. Social media may change more rapidly than media of the past (TV, radio, print), but there’s good news here: Yes, it may be difficult to keep up with the changing landscape, but as long as there are social media platforms, there will be social media influencers!
As influencer marketing is poised for explosive growth across channels, platforms, departments, agencies, and more, market forces will need to iron out one particular challenge: defining influencer marketing as paid, owned, or earned media.
In the following sections, we look at the three forms of media and how influencer marketing aligns with each.
You could argue that if a brand is paying influencers to write about them following brand guidelines, then yes, it’s paid media. What’s the difference between paying a top-influencing Instagrammer to photograph a product and post it to her account, and paying an advertising agency to photograph a product and post it as an ad online?
On the other hand, influencers aren’t advertising agencies. They’re real people and the only way their posts will be considered effective is if they seem real to their audiences. A brand can’t control the message the influencer creates — otherwise, the message misses the point. Plus, there’s no easy way to scale influencer marketing at the same rate you can with an ad. Advertisers can use a marketplace and, for a fee, click a button to have a single ad served millions of times. It’s much more time consuming to work with individual influencers to create content that’s custom to them and their readers.
When brands assume that influencer marketing must be paid media,
Brands are engaging with influencers, asking them to behave as an extension of their own social media marketing efforts. Influencers may be asked to amplify a brand’s social media posts or to comment on them. It’s very easy to see how hiring social media influencers could fall under the umbrella of a brand’s owned social media — especially if the content that influencers create is then repurposed or syndicated on the brand’s own media channels.
On the other hand, even though brands are paying and instructing influencers to create media, brands still don’t “own” the content the way they would if they were creating it themselves. For instance, if a food brand contracts a blogger to create a unique recipe and post it to her blog, is that content “owned” by the brand or the influencer? They may have a legal agreement stating that the brand may use her content, but the content has authentic value to consumers specifically because it was not created by the brand. Plus, if a brand is used to considering owned media more or less free (except for staffing/resource expenditures), it’s nearly impossible to justify cash outlays for influencers.
When brands assume that influencer marketing must be owned media,
Brands engage influencers so that their audiences will take action. One way brands measure success of influencer marketing programs is by how much engagement they receive. For example, consider the case of a food brand that contracts a blogger to create a unique recipe and post it to her blog. Say the blog post received 15 comments, was retweeted 257 times on Twitter, and pinned over 5,000 times on Pinterest. That’s a tremendous amount of earned media!
Sometimes brands don’t require that influencers do anything. Just as with the old public relations model, sometimes brands simply send bloggers a product. There is no guarantee the blogger will review that product or mention it on her social media channels. If she decides she wants to, that’s entirely her choice — and definitely earned.
On the other hand, when the influencer has been contracted and compensated by a brand, the influencer’s audience creates the “earned” media, not the influencer herself. Her content is paid, but when her readers share her content with their readers, those shares are earned. So if, for example, a blogger is paid to promote a new ice cream and shares a coupon with her readers, and then her readers share the coupon with their friends on Facebook, those Facebook shares may be considered earned.
When brands assume that influencer marketing must be earned media,
Influencer marketing is all about human interaction. A brand can work with influencers to build awareness for the brand, get people excited about their product, reach the brand’s ideal customers where they want to be reached, and ultimately drive a brand’s success.
Influencer marketing isn’t really like any form of marketing that came before — and that’s a good thing! When we stop trying to force influencer marketing to be something that was or something it’s not, the possibilities are truly exciting!