Consumers bite back: Why Influencer Marketing is taking over
CMOs are looking to social media influencers for better reach and messaging authenticity.
In the face of persistent and irrelevant advertising, consumers are starting to fight back. Over the past few years, a silent transformation of consumer habits has been taking place. Whereas once we would have been comfortable to sit through a five-minute advert break, now our patience is wearing thin. 47% of us now use ad blockers when online – how much longer until traditional advertising channels stop being effective entirely?
The recent boost in influencer marketing is one way businesses are trying to earn back consumer trust. The idea behind collaborating with social media influencers is to reach a more niche, more relevant audience which, in turn, increases brand awareness and authenticity. And it appears to be working: organisations championing influencer marketing on platforms like Instagram and Facebook have a 37% better customer retention rate than those who aren’t investing in it at all.
Despite all the stats and the obvious growth of this trend worldwide, I have to admit I didn’t really believe the hype until I heard how adidas have been doing it. At a recent CMO Insight Summit, held in a beautiful, remote part of Scotland, Daniel Bulteel, Global Social Media Director at adidas, detailed his influencer strategy to a captive audience of over 60 CMOs. And after pulling off record sales of €19.3bn last year, largely due to investment in ecommerce, their influencer approach seems to have been very successful.
adidas aren’t making the same mistakes as other brands when it comes to influencers. With traction from traditional advertising in freefall, it’s tempting to try and find a direct replacement for campaigns by putting words in the mouths of influencer partners. But, according to Bulteel, it’s the influencers who should take the lead, not the brand: “Consumer recommendations far outweigh what brands say – people listen to their friends as a trusted source over a brand”.
[advert id=”1734″]
Don’t shout, listen
Recognising that influencers create content in a much more interesting way than traditional media and gain much greater engagement has been fundamental in setting adidas apart both in the sportswear sector and as a global brand. Using a mix of social PR, AI and chatbots to complement their influencer marketing strategy, adidas are at the forefront of the marketing industry’s ongoing digital transformation. And that’s precisely because they make listening to the customer a top priority: “The beauty of social media is that we have more possibilities to get consumer insight than ever before. It’s our responsibility to surface this insight,” said Bulteel.
He also revealed how the brand has been tapping into the rise of “dark social” (a.k.a. instant messaging) by creating WhatsApp groups with 100 key influencers in global sports culture hotspots like Rio, Paris and Tokyo. These groups are used to release unpublished brand news to share in the way the influencers want, while giving them access to exclusive adidas experiences in return. It’s essentially word-of-mouth marketing for the digital age.
Rewarding the “unfamous” is also an integral part of adidas’ influencer success. The Tango League is an amateur football tournament created by the brand which has become a sports culture event in its own right. Anyone can apply for the Tango League and recognition ranges from winning the tournament trophy to landing a adidas boots deal, plus of course the chance to meet with global celebrities and football icons.
Most recently Tango League Moscow welcomed World Freestyle Football Champion Séan Garnier, Manchester City Footballer Ilkay Gündoğan and Russian Rapper Mot as its high-profile attendees. Not only are stars such as these spreading adidas’ brand influence amongst their millions of followers but the Tango League players themselves are also contributing via their own smaller, more niche networks of 2K to 25K followers.
Worth the hype?
Not everyone is convinced though – as Patrick Flo of Pernod Ricard pointed out at CMO Insight Summit, brands need to be careful about the impact on their reputation when choosing potential influencer partners: “As most influencers are now media channels in their own right (sometimes with questionable legitimacy), is it still relevant to partner with them?”
It really comes down to individual cases in terms of the value these communications hold for the customer and for the brand. If used intelligently, they can be a powerful tool, portraying the kind of authenticity and exclusivity consumers increasingly crave. If used inappropriately or with the wrong intentions, influencer communications will just turn into irrelevant PR drivel.
Ultimately, CMOs need to use their common sense – is influencer marketing the right tool for the brand or can only a privileged few jump on the bandwagon? After all, if you’re looking to make your mark on social media, a banking or insurance influencer is unlikely to have the same impact as a global football phenomenon like Lionel Messi…
GDS Group hosts experts to help experts. We strive to provide an atmosphere for our attendees that enables them to confidently lead their companies through major transformation projects. For information on upcoming events, view our Technology Summits and Executive Events. To remain current on our activities, visit GDS Group on LinkedIn | Facebook | Twitter.
