Influencer marketing a new trend

p DrDY Patil Pratishthan's Dr D YPatil Institute of Management Studies (DYPIMS) WAAO Sector 29, Nigdl Pradhikaran, Akudl, Pune - 411044 Acredited by National Assessment and Accreditation Council (NAAC) with A' Grade ISBN:978-81-927423-6-6 Wolume:6 olssue:1 February 2019 Compendium of Resea pers of National Conference on MULTIDISCIPLINARY RESEARCH IN SOCIAL SCIENCES AND MANAGEMENT STUDIES 1&2 February 2019 In Association with Savitribai Phule Pune University (Under QIP) Jignesh N Vidan Dr: D.Y.RR oYPINS Conleente Co Compendium of Research Papers of National Conference on Multidisciplinary Research in Social Sciences and Management Studies Volume-6 Issue-01 'and Bebruary 2019 Organised by Dr D YPatil Pratishthan's Dr D Y Patil Institute of Management Studies, Sector 29, Nigdi Pradhikaran, Akurdi, Pune ISBN 978-81-927423-6-6 Book Compendium of Research1Papers Multidisciplinary of Management Studies Published by and National Confere Social Scien Research in Sciences and 2d February, 2019 Dr D Y Patil Institute of Man Nigdi Pradhikaran, Akurdi, Pune First Edition Volume:6Issue: Type Setting & Printing by Anushree Enterprises, 01 Studies, Sector 29, February 2019 B-2/11, Sundervan Residency, S.N 33/22, Manikbaug, Sinhgad Road, Pune - 411051 Disclaimer The publisher, Anushree Enterprises, Pune and editors cannot be held responsible for errors or any consequences arising from the use of information contained in this book Views & opinions expressed in the articles/ papers not those of the publisher and editors All efforts are made to ensure that published information is correct The publishers and editors are not responsible for any errors caused due to oversight or otherwise necessarily reflect ii & Management DYPIMS Research in Socelal Seienes on "Multidisciplinary Nafional Conferenee INFLUENCER MARKETING: Studies" ISBN: 978-RI.977489 7423-6-6 tade A NEW TREND2 Mr Jignesh Vidani Institute of Management Assistant Professor, L.J igneshvidani@live.com Studies,Ahmedabad ABSTRACT both in terms awareness and usage Increased of today are becoming digital savvy in terms smarter are of their preferences becoming and internet facilities they usage of mobile of digital platforms like social media and different and purchases There is increased usage Consumers innumerable brands in a particular product category websites to buy products Also there are makes nearly impossible for brands to stand entering market through various platforms This brands are now turning towards Influencer out in such a fierce competition Hence, in a decade for those professionals at the marketing This is a new approach to marketing Influencer marketing is a new trend where focus leading edge of purchase decision-making market as a whole on social media.This is on influencing people rather than the target reader/viewer which is nearly imnpossible for a develops level of trust between influencer and the last five years, the spread of social brand to build alone with the customer During mediahas further changed buying and selling techniques With platforms like Facebook, Twitter andYouTube, consumers are able to give their review in the form of like, comments, and companies shares, etc regarding their experiences about products customer experiences growing need for companies to generate positive negative word-of-mouth messages, which platforms potential customers Blogging is would easily be spread This has led to the in order to minimiz within the social media another form of social media that is very popular Fashion blogs have grown and are known to be one of among females in category of fashion recommendations over internet.They are the most effective ways of sharing experiences and to the target customer with low cost It is not an effective way of marketing products straight but also surf, and read and to only a place which females view to find specific product buy, online through ecommerce accidentally find something desirable It can increase the buying websites or social media platforms since it can connect the user directly to the sites, company place of purchase This study is to explore concept of influencer marketing, growth of it in increasing importance and scope From the study it is found that there are various India, its product categories which have impact of influencer marketing on people like fashion, mobile, mobile accessories, movies, restaurants to name few Key Words: Influencer Marketing, Facebook, Instagram, Fashion Blogs, Digitalization, Social media INTRODUCTION With people easy as we are doing since last Social Media provides people an ease to many years However, it is the express their views, ideas, thoughts and opinions socially and share them with people they know It makes connecting media that it has advantage of social removed lengthy time constrains that was inherent in traditional methods of communications It has also Dr DY Patil Institute of Management Studies (DYPIMS), Pune 344 DYPIMS National Conference on "Multidisciplinary Researeh in Soclal provided online tools that enable people to share media content lt employs casy to intertäces that enable use specialists even to share and connect the social media Selences &Management Studies" 1SIBN: 978-81-927423-6-6 RESEARCH OBJECTIVES non- through To last years these social media is enjoying a phenomenal success: Faccbook To most important new approach to marketing in a decade for buying social media the various marketing as types well of as its benefits to the To the several tools used by study company to increase its follower base To study the increase in use of influencer marketing by the Indian and the companies worldwide (YouTube 2014), and at the same time it is Influencer marketing is the influencer Consumer terms of influencer marketer of video Marketing study influencer (Twitter 2014); More than billion unique users visit YouTube each month, watching What is Influencer of marketing post on average 500 million tweets per day blogs worldwide (Nielsen 2012) effect on behaviour in claims that its active users reached 1.3 billion worldwide, nmore than 50% of which log in every day (Facebook 2014); Twitter is another social media platform that claims to host 225 million users who estimated that there are over 181 million explore marketing Since few more than billion hours AGne RESEARCH DESIGN Period Research of Type analysis of Month Secondary those professionals at the leading edge of Data purchasing decision-making The word Internet, Newspapers Collection Magazines and Videos Influence" can be broadly defined as the Method power to affect a person, thing or course of events (Brown & Hayes, 2008) Brown Type and Hayes define an Influencer as "A third Research party significantly shapes who the customer's purchasing decision, but may ever be accountable for it." (Brown & Hayes, 2008, p 50) Influencers are individuals who have the power to affect purchase decisions of others because of their authority, knowledge, position, or relationship" (businessdictionary.com- of DeseriptiveResearch LITERATURE REVIEW The Internmet has changed the traditional ways of conducting business and establishing consumer's relationships, the way companies and customers interact and the transactions Online shopping 1s are gaining a vast popularity and is becoming everyday people who influence consumers broadly accepted as a purchasing tool for making a purchasing decision Anyone be a social influencer, influencing products and services With the emergence Infuencers) as Social influencers can someone else's brand affinity and of the e-commerce online purchasing emerges as a new phenomenon, becoming purchasing decision (Singh et al, 2012) DrDY Patil Institute of Management Studies (DYPIMS), Pune 345 Research in Social Selences &e Management Studies" 1SBN: 978-81.077/03 DYPIMS National Conference on "Multidiseiplinary A-Grade c o m m e r c e in the the future of digital world & Fox, 2008) (Bourlakis, Papagiannidis become Therefore, social media has crucial for communicating brand source making globally, messages a the organizations, researchers and marketers more interested in influencer marketing on platforms media social various advocates (Brown & Hayes, 2007 what are influencers? There are a definitions of what focus the influencers are, but But few We following definition influencers, as an extremely popular medlia on form of micro-celebrities Influencers re people who operate on numerous types social media, and often simultaneously Instagram (known platforms, Instagrammers), YouTube (known a few such on Hence, 2013) (Saxena& Khanna, influencer marketing is a practice, which is as trending and currently is a contemporary YouTubers), issue in marketing It can be defined as a Tweeters), and different professional and form of marketing that involves activities or aimed towards identifying and building who as Tweeter (known as commercial bloggers (Abidin, 2016), are famous "o a niche group of who have the people" (Marwick, 2013, p.114), unlike capability to influence over potential the mainstream celebrities Marwick (2016) describes the micro-celebrities as relationship with individuals It buyers (Wong, 2014) follows the regular people drawing on the culture of concept of a "trusted advisor", as defined by Brown and Hayes (2007), and is celebrities to boost their popularity within resemblance to the older TV a network, using online tools They not perceived as a are this just out of nowhere, it includes featured to leverage their popularity and wary curation of" self- conscious, carefully advertise a brand Producing content, constructed personas" (p.334), empowered which can go viral and achieve substantial by strategically sharing of information, and success, is considered to be the aimed at building a specific relationship most difficult (Watts, Perretti&Frumin, with followers (Marwick, 2016) This 2007) influencer specific relationship is para-social- giving able to the illusion of having an actual face-to- stimulate the consumers to buy their face relationship betvween the follower/fan commercials, marketing where By marketing products, tapping the and celebrities into companies create a are significant retail lift and the infuencer (Horton &Wohl, 1956) Brown and Hayes (2007) postulate three Para-social communication can create the patterns to tap into influencer marketing feeling of intimacy First, marketing to people who can become would be in real influencers interpersonal and increasing the brand's and relationship as it life conditions with communication (Chen, 2014; awareness within the community of the Horton&Wohl, 1956) By commenting on influencer Second, marketing through the the different social media where they have influencers by using the them to surge the account brand's awareness amid target consumers expanding the para-social relationship that by (Marwick, 2016) It is argued, direct staying in touch and having Third, marketing with transforming influencers by influencers to brand Dr DY Patil Institute of Management Studies (DYPIMS), Pune the micro-celebrities are 346 DYPIMS National Coníference on "Mulridisciplhlnary Research in Social Sclences &Management Studies" ISBN: 978-81-927423-46 interaction with their followers and Emerging digital influcncers could supporters they are able to maintain and also be bloggers They fall under grow their popularity In her study on the the category of Discoverer micro-celebrities in Singapore's lifestyle Influcncers by connection They and fashion area Abidin (2015) states that are people who have hundreds of these micro-celebrities, whom she calls Faccbook intluencers, are giving the impression of followers If you represent abrand, intimate interaction, or communicative intimaey They this by utilizing you want to court these peopleto different techniques- posting raw photos rather than highly photo shopped pictures, asking for comments in order to improve content, or showing they are down to earth friends and Twitter produce brandaction They fall under the category of the Networker Influencers by topic People who are opinion leaders for the certain personas with everyday problems topics, like if you represent a brand, you want opinion leaders talking Types of Influencer Marketers about your products Traditional influencers - These are orservices They fall under the the category of Opinion Leader individuals that represent conventional PR agencies or are Users: The users of the product or area service can influence their friends, of subject expertise They generally relatives to purchase the product fall under the group of the Sharer and service celebrity figures in Emerging(digital) a specific influencers Working of Influencer Marketing These poster-tech bloggers and The company has few influencers and they emerging digital influencers have further influence the people's buying recognized a audience decision that follow them using the social following and thought media platform They are the people who leadership in a specific space indirectly impact the sales of the company YOUR BRAND large drive SOCIAL + Types of Social Influencers INFLUENCERS - Platforms content they create and the audiences who follow Categorising social influencers by platform them By understanding the features, limitations and demographics of will allow you to understand the types of Dr DY Patil Institute of Management Studies (DYPIMS), Pune 347 DYPIMS National Conference on "Multidlsciplinary Resenreh in Soclal Sclences & Management Studies" ISBN: 978-81-927423-6-6 Arale cach platform you can tailor your campaigns to suit Faccbook influencers Over the years, influencers have built Bloggers sizable audiences The original social intluencing platform, platform using combination of consisting the on Facebook a blogs and bloggers have stood the test of time to remain one of the most powerful media social introduction today of countless Despite the other social platforms and at times being considered unfashionable, blogging still remains one of the best ways to become an influence on posting, unique content, creative video and live video to enhance their fan Given the recent changes experience to the Facebook algorithm, there has been perhaps no better time work with Facebook influencers who have engaged audiences who have to meaningful discussions on the platform any given topic Working with bloggers provides a number different benefits Because blogs are generally text-based, sponsored posts of expose brands to the blog's readership and help when the objectives are to drive traffic to a destination site or generate Sign-ups A blog post last for years and, from an SEO perspective, the older it gets the more authority it has in search rankings can Facebook has made it easier for brands to work with influencers with the Branded Content feature It allows brands to be identifiable within sponsored post influencer's an and adheres guidelines to advertising Instagram influencers Instagram has been a key driving force in driving the influencer marketing industry It's the most comes to widely used platform when influencer marketing it which is YouTubers usually in the form of sponsored posts YouTubers are one of the earliest kind of influencers and since as early as 2006, YouTube has proven to be a powerful platform that has launched the careers of Collaborating with Instagram influencers some of the influencers to - well-known social most some of become household which have gone simple yet viable option given the size the audiences some influencers command and the engagement rates each of their posts receives Snapchat influencers names appealing platforms of a on The sheer size of YouTube along with the to create ability rich brand partnership content has made the platform one of the most is for looking to work with influencers brands Snapchat influencers are useful if you want engage a young audience given the to demographics of the platform Often influencers "Snapchat takeovers' where they may take over a brand's Snapchat protile or vice versa Dr DY Patil Institute of Management Studies (DYPIMS), Pune 348 DYPIMS National C'onference on "Mnltidieiplinary Retearch in Social Sclencen& Management Stadiee" ISBN: 978-81-917421-6-6 de Doubts are now cast over Snapchat in the (Sourec: sciencedaily) long-term sinee Instagram copied its most Whilc talking about females, they are more likely to usc fcature the story Many Instagram than men which stand to 3W%, interesting Snapchat inthencers are transitioning lnstagram to build an audienee there Scenario Current of whereas for males it stands to only 26% Top brands on Instagram are secing a per- Infuencer Marketing follower engagement rate of 4.21% which is 58 times higher than on facebook and 120 times higher than on Twiter According to a survey, there are 4.2 billion (Hootsuite) 41% of marketers have used Internet users out of which 3.4 billion Instagram video and 44% additional have planned to use Instagram Video.For Youtube the number of marketers sharing video content on LinkedIn is around 55% users are actively using social media in the world (Statista, 2018) When it comes to India there are 462 million active internet users out of which 430 million actively use in 2018, which was only 38% in 2017 internet on their mobile phones, out of (Source:Youtube) which 250 million are active social media Influencer Marketing accounts to create users and of which 230 million are active 92% of increase in expanding brand on social media through mobile phones awareness, 88% increase in reach new (Statista, 2018) AS per social media update report 2016, daily facebook users targeted audiences, 74% increase improvement in sales conversion in and accounted for 76% and that of Instagram boosts customer satisfaction by 63% was 51% Almost 93%-95% of the people (Sproutsocial.com) As per the survey using any social media application were conducted by Tomoson, 51% of already using facebook and Instagram companies reported that they get better quality of customers through influencer More than 50 million small businesses are marketing and the major platforms that connect with their were used are Instagram, Facebook, Blogs million customers, businesses pay for social media advertising and Youtube The findings of the report on facebook (Source: Facebook) online customer acquisition method as Out of total 90% of Instagram users are well as cost effective too Further it younger than 35 years of age, out of which reported that this technique is commonly 32% of teenagers consider Instagram to be used in fashion, travel, beauty, food and using facebook pages to out the most of which important social network also quoted that it is the fast growing electronic items (Source: Tomoson) Dr DY Patil Institute of Management Studies (DYPIMS), Pune 349 DYPINS National Conference on "Multidisciplinary INFLUENCER Research in Soclal Sclencen Studles" 18BN: 978-81-927423-6-6 AGrade IN 2018 MARKETING PERFORMING TOP BEST &Management BRANDS months of 2018 the brand in the first mentioning all posts Total likes of 2018 (USD) brand in the first months Total Earned Media Value for the on FASHION NOVA 611,960,856 125,169,866 LIKETOKNOW.IT 322,845,788 67,597,827 ZARA 381,388,436 59,517,762 H&M 288,052,046 39,116,167 KKW BEAUTY 122,163,105 36,881,309 Data: InfluencerDB; Instagram the interesting thing is that 23% marketers (Top Performing Best Fashion Brands traditional Media Looking to the various due to Influencer Marketing) According Influencer to a report by Marketing consider it to be a good altenative for Buzzoka Outlook on 2018 social media platforms twitter leads the primary choice of marketers and 88% companies marketers see it as a huge potential and consider branding and reach as their this is closely followed by Facebook at influencer 84% and Instagram with 72% There were marketing Talking about importance 46% 78% marketers use influencers to drive marketers around India attributed reach meaningful engagement and engagement as the most important factor for using influencer marketing and media handles 49% marketersS reported conducted primary in India, objective to 51% use Dr DY Patil Institute of Management Studies (DYPIMS), Pune on brand's social 350 DYPIMS Nationl Conlereuce on "Multidiseijplinary Research in Socal Sclences &Management Sludles" 1S8N: 978-81-92742316-4 hle that influencer marketing as the best customer acquisition method Product/service Categories Purchased due to an Influencer"s* Social Media Post ACcording to US internet Users, by Gender, April 2018 % of rEspondents in each grOUp Product (beauty products, clothing, electronics, etc.) 25% 18 22% Event (concert show, music festival, etc.) 15% 18% 17% Service (dining photography, hairdressing, etc.) 12% 12% 1% attraction, e t c Travel (destination, hotel, 11% 13% 12% None of the above 38% 40% 39% Male Female TOtal Note: a g e s 73+, *a person the resporndent doesn't knoW personaly, who prodUCts on their social channe! i o e r s ana promoteS oF oStrategy nas a fotCPC SOurce: "The 2018 tiLencer MarkKeting Report, "AUg 1, 2018 www.eMarketer.com 240098 According to a survey conducted by eMarketer.com on 1* August 2018, 25% women and 18% males purchase products like electronics, mobile phones, electronic audiences Brands get influential content and real-life stories that drive brand awareness, build buzz, increase purchase intent, and trend with consumers through creative content they trust, especially in getting tier-two and tier-three cities across India media Influencer marketing can be conducted on influencer for making purchase decision various social media platforms Influencer For movies, shows, events and concerts marketing has now become a common branding strategy with a striking increase gadgets, influenced 15% cloths(Apparel) from females the and by social 18% males get influenced by the social media influencer for making purchase decision in the number of organisations joining the movement Influencers have noticed this trend and are widening their scope of services However, this does not necessarily have to be about their prices IMPLICATIONS AND CONCLUSIONS alone Influencers are also looking for Marketers have acknowledged that today's consumers trust word of mouth over brandspeak and so, they are increasingly collaborating with influencers who will campaigns that are worthwhile and will play a significant role in moulding their careers help them reach newer and engaged Dr DY Patil Institute of Management Studies (DYPIMS), Pune 351 DYPIMS National C'onference of tindings The have indicated that that opinion make survey leading and rapidly marketing platform, top marketers are of the a consumers arc more decision purchase a Sciences & Management Studles" ISBN: 978-81-927423-6-6 "Multidisciplinary Research In Soclal exhaustive an conducted by Zetmo, intlucncer growing on likely bascd to on authenticity and addition In intlucncers because of the atfinity clements overwhelming number of markcters feel 1.Grsde Gemder, New Media & Technology, doi: 10.7264/N3MW2FFG Abidin, C (2016) Aren't These Just Young, Rich Women Doing Vain Onlinc? Influcncer Sclfics Things as Subversive Frivolity Social Media + Society, Vol 2, Issuc 2, 1-17 "2014 Cameron, Bctsy in ycar a review", by their peers when it comes to makinga https://ncwsroom.fb.com/news/2014/1 2/2014-ycar-in-review/, assessed on purchase decision 15 that inereasingly consumers are influenced With social media taking over our lives, intluencer marketing is on the rise as one of the most ideal careers for young adults Everybody In an wants to attempt blogger, users a tend to high to be a social media star build their network as a number of active online buy their followers on various social platforms Brands need to Decmber 2018, 4:30 PMM Bourlakis, M., Papagiannidis, S & Fox, H (2008) E-consumer behaviour: Past, present and future trajectories of an evolving retail International Journal of E-Business Research, 4(3), pp 64-67, 69, 71-76 Brown, D Influencer & Hayes, Marketing: Your Influences take care of all your branding needs Elsevier Ltd, 235 pages which is used for branding is only going to to get bigger and better with the years brand-centric come as influencers create content that readers love to consume Whether you are planning to increase visibility for your retail brand or showcase the services of your B2B firm or in B2C influencer marketing is the market the, (2007) Who Really s.l Routledge Brown, Duncan & Hayes, Nick 2008, Influencer influences Business The technique of Influencer Marketing N Customers who stay wary of such "fake" influencers might have the following but not have the potential in them The safest bet is to reach out to a reputed influencer marketing like influencer in, and let them agency, revolution Marketing, your Who really UK: customers? Influencer dictionary from: Available http://www.businessdictionary.com/def inition/influencers.html, Asssssed 21.12.2018 Standard, Business https://www.businessstandard.com/article/current affairs/india-is-adding-10-millionactive-internet-users-per-month- way to go google-118062700882_1.html, 30h December 2018 at assessed on REFERENCES 6:00 PM Abidin, C (2015) Communicative Chen, C (2014) Forming digital self intimacies: Influencers and perceived and interconnectedness Ada: A Journal of YouTube Dr DY Patil Institute of Management Studies (DYPIMS), Pune parasocial relationships Journal of on Consumer 352 DYPIMS National Conference on "Multidisciplinary Research in Social Sciences &Management Studies" ISBN: 978-81-927423-6-6 A-Grade Culture, 1-23 (0)0, 10.1177/1469540514521081 DOI: Horton, D & Wohl, R.R (1956) Mass communication and interaction: Observations parasocial on intimacy at a distance Psychiatry 19 (3): 215- 29 structural equation modelling approach, Vision, Vol 17 No 1, pp 17-25 Singh, Shiv & Diamond Stephanie 2012, Social Media Marketing For Dummies 130 pages Sofie Biaudet, Influencer Marketing as https://www.dreamgrow.com/21- Marketing a social-media-marketing-statistics/, assessed on 29" December 2018, 7:15 PM Tool, https://www.theseus.fi/bitstream/hand e/10024/134139/Biaudet Sofie.pdf assessed on 25h December 2018, 5:45 https://www.thestorytellermarketer.co m/influencer-marketing/types/, PM December 2018, 6:00 Sudha M and Sheena K., Impact of Infuencers in Consumer Decision Marwick, A (2016) You may know Process: the Fashion Industry, SCMS Journal of Indian Management, July - assessed on 24 PM me from YouTube: (Micro-) Celebrity September 2017, p14-30 in social media In Marshall, P.D., & Watts, D J., Peretti, J & Frumin, M Redmond, S (Eds.), A Companion to (2007) Viral marketing for the real Celebrity (pp 333-350) West Sussex, world Harvard Business School Pub UK: John Wiley & Sons, Inc Wong, K (2014) Nielsen, State Growth Of Influencer Marketing And 2012", https://www.nielsen.com/in/en/insights What It Means For You Retrieved media of the media: The Explosive The social " report reports/2012/state-of-the-media-the social-media-report-2012.html, uploaded on December 2012, assessed on 16 December 2018, 5:00 PM September, 21st, 2016, from http://www.forbes.com/sites/kylewong 2014/09/10the-explosive-growth-of influencer-marketing-and-what-it means-for-you/#6618e09595f1, assessed on December 2018, 5:45 PM Saxena, A & Khanna, U (2013) Advertising on social network sites: a Dr D Y Patil Institute of Management Studies (DYPIMS), Pune 353 ... & Diamond Stephanie 2012, Social Media Marketing For Dummies 130 pages Sofie Biaudet, Influencer Marketing as https://www.dreamgrow.com/21- Marketing a social-media -marketing- statistics/, assessed... such a fierce competition Hence, in a decade for those professionals at the marketing This is a new approach to marketing Influencer marketing is a new trend where focus leading edge of purchase... communicating brand source making globally, messages a the organizations, researchers and marketers more interested in influencer marketing on platforms media social various advocates (Brown & Hayes,