The Power of Influencers: Is it a risk for Procurement and Marketing Teams?
Over the last five years influencer marketing has now become an established strategy for businesses to reach their target audience and increase brand awareness.
By partnering with social media influencers, companies leverage their large followings to promote products and services.
When influencer marketing became the ‘next-big-thing’ many companies began trialling campaigns and appointing specialist agencies to expand their capability in this space – but have these original relationships and processes been reviewed recently?
While influencer marketing can be effective, it also comes with risks that Procurement and Marketing teams need to be aware of.
Here is a starting point for those of you who are looking at influencer marketing for the first time, or those in need of a refresh and review, if it’s now an established marketing channel in your organisation:
The Benefits of Influencer Marketing
Influencer marketing is a form of word-of-mouth marketing that can be highly effective. Here are some of the key benefits of influencer marketing:
Increased brand awareness: Influencers have large followings on social media, which means that partnering with them can help increase brand visibility.
Targeted marketing: Influencers often have a specific niche or audience, which means that partnering with them can help businesses reach their target audience.
Authenticity: Influencers are seen as authentic and trustworthy by their followers. By partnering with influencers, businesses can tap into this authenticity and build trust with their target audience.
The Risks of Influencer Marketing
While influencer marketing can be effective, it also comes with commercial risks that Procurement and Marketing teams need to be aware of. Here are some of the key risks of influencer marketing:
Ineffective partnerships: Not all influencers are a good fit for every brand. If a business partners with an influencer who is not a good fit, it can result in an ineffective partnership that does not generate the desired results.
Lack of transparency: In some cases, influencers may not disclose that they are being paid to promote a product or service. This lack of transparency can damage the trust that followers have in both the influencer and the brand.
Negative publicity: If an influencer behaves in a way that is inconsistent with the values of the brand, it can result in negative publicity that can damage the brand's reputation.
Legal issues: If an influencer promotes a product or service in a way that is not compliant with advertising regulations, it can result in legal issues for both the influencer and the brand.
Mitigating the Risks of Influencer Marketing
To mitigate the risks of influencer marketing, Procurement and Marketing teams need to take a strategic approach. Here are some key steps that can help:
Choose the right influencers: Procurement and Marketing need to carefully vet influencers to ensure that they are a good fit for the brand and that their values align with those of the brand.
Ensure transparency: Influencers should always disclose that they are being paid to promote a product or service. This transparency helps to build trust with followers and ensures compliance with advertising regulations.
Monitor influencers: Procurement and Marketing should monitor influencers to ensure that they are promoting the product or service in a way that is consistent with the brand's values and advertising regulations.
Have a crisis management plan: In the event of negative publicity, Procurement and Marketing should have a crisis management plan in place that outlines how to respond and mitigate the damage to the brand's reputation.
Influencer marketing can be an effective strategy for businesses to reach their target audience and increase brand awareness. However, it also comes with risks that procurement and marketing teams need to be aware of and manage. By taking a strategic approach and mitigating these risks, businesses can leverage the power of influencer marketing to achieve their marketing goals.
