Influencer Relationship Marketing & Influencer Marketplace – Why you need to know the difference
Influencer marketing is taking off, and for good reason. The power of authentic sponsored content from adored content creators has turned the once well-kept secret into a standard practice—and an $8 billion industry. And while this rapid rise has led organizations all over the world to find success, the practice is still new and unfamiliar to many.
At this stage of the industry, organizations looking for influencer marketing services have more options than ever, whether they opt to manage campaigns in-house—potentially aided by influencer marketing workflow tools—work with an influencer-specialized marketing agency, or, among the most recent industry trends, purchase access to influencers through an influencer marketplace.
And while organizations may find success in a variety of arrangements, the way they manage influencer relationships will play a large part in how their campaigns perform. We’ll examine influencer marketplaces, and how their approach differs from the best practices we endorse.
What is an Influencer Marketplace?
An influencer marketplace is an online platform that helps users connect with a variety of influencers for work on marketing campaigns. Typically, organizations can search through influencers across different industries, social platforms, and audience size—a fashion YouTuber with more than 100,000 followers, for instance. These services are generally aimed at easing the work involved in finding and vetting influencers, with some of the more elaborate platforms offering workflow tools as well.
What is Influencer Relationship Management (IRM)?
Authentic, long-term influencer relationships—termed influencer relationship management (IRM)—is about creating real, genuine connections between audiences, influencers, and brands. Brands engage in IRM by identifying authentic influencers whose personality and subject matter show that they’d likely have a genuine interest in the brand and its products. They then develop a relationship that leads influencers to feel an authentic connection to the brand. Influencers and their brands can then creatively collaborate on promotional content that transfers the audience’s love and enthusiasm for influencers to the brand itself.
Authenticity is Everything
It’s crucial to understand the sole factor that makes IRM so powerful: authenticity.
Authenticity is nothing less than the fuel influencer marketing runs on. In a world where the social is connected to the digital and digital spaces are highly commodified, people filter content by what feels natural, familiar, and honest. In some ways digital advertising, which was once a much more effective advertising channel, declined in value because it was loud, spammy, and often misleading.
When consumers go online, they want to hear from their peers, not professional copywriters. If influencers aren’t perceived as authentic by their audience, then they’re far less likely to care about any promotional content they release. Influencers gain success through creating a genuine relationship with their audience, which they build through expertly-created content and community management.
This authenticity must also extend to the relationship between brand and influencer. Truly authentic influencers know they risk losing their audience if they half-heartedly promote products that aren’t relevant to their lives. Only by demonstrating an authentic connection to products can influencers create content that both successfully engages and drives affection for brands and products.
Authenticity in influencer marketing humanizes brands and commercial messaging. By acting as a trustworthy and admired peer, influencers transform brands from faceless enterprises to reliable advocates. And when applied to the content of commercial messages, they’re changed from easily-ignored promotions to earnest recommendations from trusted peers.
Why Influencer Marketplaces are not sustainable, and do not produce sales
Searching for the right influencer takes time, and there’s no guarantee that the influencers you find will be amenable to collaboration. Sixty-seven percent of brands surveyed by Mediakix said they struggle to find the right influencer for their campaigns. Marketplaces seem to address this confusion directly.
Ultimately, these marketplaces present a false choice. They may simplify a seemingly daunting process, but they’re based entirely on the false premise that one can skip the step of vetting influencers and run successful campaigns. And their marketing gives the impression that influencer marketing should be approached just like any other marketing channel. In reality, selecting and vetting is half of the battle of influencer marketing.
In addition, marketplaces provide a limited selection—far too few for brands to find a good match—and the influencers they do feature aren’t as well vetted as marketing materials may suggest.
Brands Will Not Achieve Brand Love Through Marketplaces and Inauthenticity
There’s no getting around the importance of the selection process. With marketplaces, that critical work is done for you, and you can’t be sure it’s done in the best interest of your brand. Because you’re limited to a preexisting pool of influencers, you’re less likely to find partnerships that meet your criteria for authenticity, reach, and audience-product fit. Working with them may give your brand exposure, but without any authentic connection between influencer and brand, you’re less likely to gather brand affinity or conversions. And the consequences can be severe if a particularly troublesome influencer is picked. In one incident, reality TV star Megan McKenna sparked controversy for promoting teeth whitener despite her well-known use of veneers.
It’s also important to note that influencers don’t always come credentialed and officialized. The best-fit influencer for a brand may not be actively selling their services online, or may not call themselves an influencer at all.
Many influencers purchase a significant portion of their audience, running the risk of marketing their brand to an audience with a large share of unoccupied accounts. A CBS report found that brands lost a total of $1.3 billion to fake followers in 2019 alone. And not only will this impact campaign performance, but brands are also at risk of being associated with bad actors, SocialBlade is a great tool that can help expose fake followers). As influencer marketing scandals continue to generate headlines, this is an association most brands would pay to avoid.
And because influencers in these competitive marketplaces are incentivized to take any paying promotion, coupled with a limited pool of influencers, a poor brand-audience fit is practically guaranteed.
Another critical aspect of the marketplace business model is the exclusivity of their influencers. So long as you work with marketplaces, the influencer’s primary relationship will always be to the platform, and not with your brand. Not only does this make ongoing collaborations difficult, if not impossible, this means there’s little to differentiate yourself with competitors, who theoretically have access to the same influencers.
Performance Issues Means Marketplaces May Not Be the Future of Influencer Marketing
Given many of the problems associated with them, influencer marketing may not be the best avenue for most marketers and the industry at large. Future iterations of the service may certainly address current shortcomings—like better-vetted influencers, options for exclusivity—but so long as their model inhibits the kind of long-term, authentic relationships, they may always be associated with poor performance.
Change the Way You Find Influencers to Build Stronger and Longer Relationships
Positive change in the influencer marketing industry is possible. Many brands are already aware of many of these challenges, and appear to understand on some level that influencer marketing requires a distinct approach. Marketers polled by Mediakix overwhelmingly (96 percent) said they don’t believe that influencer marketing can be automated, and rank content quality as the most crucial factor when assessing influencers.
The next step: educate brands on how to find and vet influencers.
Brands should start their search by first considering their ideal audience, working backward to identify influencers who not only authentically engage this audience, but would also be likely to have a personal interest in your brand or product.
Identifying the authenticity of the follower-influencer relationship is also key. No single metric can convey such a complex quality, but a careful reading of their web presence can provide countless useful indicators. Look for a low ratio of sponsored content to bread-and-butter posts, see if their content fosters real conversation from a wide variety of followers, and check to see if their audience responds equally enthusiastic to sponsored and traditional content. If you know your market well, recognizing the standouts who have a demonstrable passion and can artfully bring out that passion in followers.
Real Relationships, Real Connections, Real ROI
Brands additionally need to approach influencer marketing more like brand ambassadors than faceless marketing channels. That means working relationships that more closely resemble collaborative friendships than a series of business transactions.
Research from the Keller Fay Group found that influencers who are passionate about the products they recommend “have significantly more buying conversations, and consumers are more likely to act on their recommendations.” Facilitating this passion should be a top priority.
Relationships with influencers need to be approached in this way from the first point of outreach. This may require a bit of adjusting for brands used to purely transactional relationships, but since the secret sauce here is being a considerate, informal and honest collaborator, it’s a skill set within reach of just about anyone.
Initiate the relationship based on their social presence. That means likes, comments (But not too many), and shares – basically how they engage with their audience. From there, take any available opportunity (within reason) to nurture the relationship, both through communication and providing appropriate freebies and benefits. These provide opportunities for more brand-friendly content and help fuel the authentic passion that drives their legitimate affection for your brand.
Change the way you think about influencers
Influencer marketing is a powerful and transformative way to acquire lucrative and loyal customers. And remember, if authenticity doesn’t flow evenly between brand, influencer, and audience, it’s merely advertising by another name.