The Impact of Influencer Marketing on Modern Business

Introduction

Businesses rely on various marketing strategies to succeed in their ventures. The strategies encompass influencer marketing, a form of marketing strategy where a business depends on public endorsements from influencers. The influencers have a substantial online presence and can impact the audience following them (Vrontis et al., 2021). Influencer marketing is the go-to rubric in the current business landscape. Influencer marketing has faced a dynamic shift as technology takes the forefront in many businesses. There are various types of influencer marketing, and they rely on the impact on consumer trust to execute their purpose. The effect on consumer trust translates to a diverse purchasing decision, which determines the effectiveness of influencer marketing (Hudders & Lou, 2023). In this case, it would be critical to analyze human, macro, micro, and virtual influencers using the source credibility model and assess their impact. The trust that users have usually placed in human influencers is shifting due to the encroachment of personal space and privacy.

In this case, businesses are using other forms of influence to market their products. In this way, their effectiveness varies, which warrants a dissection into the challenges faced while implementing the strategies. It is critical to note that the methods are also facing rapid innovations and changes with the advent of technological improvements, providing a point of view that needs to be analyzed. Therefore, the research will focus on identifying how the various influencer factions are being implemented in the business landscape, how they impact the effectiveness of the marketing strategy, the challenges they bring with them, and how the emerging trends are critical in ensuring the continuity of the plan.

Research Question

To what extent do the various types of influencers, including human, micro, macro, and virtual, impact the effectiveness of influencer marketing?

With this research question, the researcher can ensure that the impact of influencer marketing is correctly assessed. The research will analyze the different types of influencer marketing and utilize the source credibility model to compare the extra level of consumer trust and impact on purchase decisions.

Theoretical Framework

The source credibility model is a model that best explains the effectiveness of diversity in influencing marketing faction (Shoukat et al., 2023). A source credibility model will allow us to compare the credibility of the various influencing strategies by measuring their effectiveness on the impact on consumer attitude and purchase intention (Ohanian, 1990). It allows the researcher to dissect and analyze the existing data with a clear view of the goals. In this case, the model can be used to explain the aspect of trust that the consumers prefer in influencing. It answers which mode of Influencing is more trustworthy and proves the theory that colossal diversity impacts influencing effectiveness.

In an environment where current technology is the norm, businesses must evolve. Consumers are interested in something other than information that piques their interest which can be presented to them in a visually appealing manner. According to Machin & Mayr (2023), the use of words and images as a form of communication is more likely to get the message delivered. In this case, the various aspects of influencing marketing can tend to consumer requirements by using a visually appealing method of advertisement. They demand that the company attend to their needs without fail. Keeping up with these requirements shows that the business has to be critical in its marketing techniques. Influencers are individuals or entities that a business entity uses to attract more customers and make its consumers aware of the products it is dealing with. Depending on the mode of influencing used, the consumer’s attitude and purchase intentions are highly impacted (Hudders et al., 2021). In this manner, influencer marketing aims to get the consumers to purchase the various products showcased; and can succeed in it by using a more visually appealing communication method. With the model, the researcher can understand what form of influence the consumers prefer and confirm it based on the impact on consumer attitude and purchase intention towards the given products.

Literature Review

Diversity of Influencers

Businesses strive to stay on top in a world where a better marketer gains more customers. They have resorted to influencer marketing to perfect their consumer attraction strategies. Influencer marketing refers to using entities and individuals to showcase the business’s products and explain the problems they solve (Pradhan et al., 2023). In this case, the users of various platforms can purchase the products and make the business profitable. Influencer marketing has reigned in multiple landscapes and has been the saviour of many unknown companies. The types of influencer marketing are many and diverse, but the types that stand out include human influencers, and virtual influencers. In this case, the use of such influencing methods allows the business to make more sales and turn in more profits. There are various types of human influencers including micro, macro and mega influencers. Micro-influencing involves influencers whose social media following is usually between ten to a hundred thousand followers; with micro-influencing, the brand teams up with content creators with a good engagement and such a following to promote their products (Gerlich, 2023). Consumers tend to trust those they can relate to, apart from celebrities. Macro influencing involves using an influencer with a large following of up to a million and with good engagement in their industry (Pradhan et al., 2023). With this influence, there are many consumers, but most may relate to something other than the products being promoted. Mega Influencing involves recruiting influencers with a following of over a million, usually widely known individuals (Harris, 2023). In this case, they are generally referred to as celebrity influencers, and their reach significantly impacts increasing sales and improving business traffic. Virtual Influencing involves using machine-generated entities to persuade customers through customized information methods and attract them to the business.

Effectiveness of Influencer Marketing

A business can use various existing marketing strategies, including influencer marketing, which is critical to the venture’s success. In this case, humans and virtual influencers are the most reliable in extreme situations. Human influencers are divided into micro, macro, and mega factions (Loyen, 2023). Their social media following differentiates them and their engagement with the audience. When collaborating with influencers, brands hope to promote their services and products and drive sales (Lou et al., 2023). However, since the audience varies, the effectiveness of the strategies also varies. In this case, virtual influencers come into sight. They are utilized by businesses that aim to make their reach more personalized as they are deployed as advertisements and meet the target audience (Jhawar et al., 2023). The effectiveness of the strategies is measured through their ability to drive sales and traffic to a business.

Challenges in Influencing Marketing

With the increased and diverse methods of human influence, ensuring that the business promotes its products to the right audience has become a challenge. Some celebrities are riled up with controversies that may damage a brand’s reputation, resulting in a sales dive (Loyen, 2023). In this case, there is also an aspect of authenticity since the consumers question the eligibility of the various products the influencers promote (Alvarez-Monzoncillo, 2023). In terms of using virtual influencers, the aspect of transparency becomes evident since some are customized to fit the needs of an individual. Also, influencer fraud has caught up with many businesses utilizing influencer marketing strategies, which drives consumers away.

Emerging Trends

The business sector relies on continually innovative strategies to meet the ever-growing demand. The reliance on technology means that virtual influencers are the next big thing. With fraud and authenticity being the significant issues facing influencer marketing, it is critical to rely on computer-generated characters that majorly understand a consumer’s needs without extra costs (Diawati et al., 2023). New platforms are being generated to set the base for virtual influencers, which will be compatible with the latest content formats of AI-generated content. Also, since reliance on mega influencers can be a costly adventure, the business should focus on creating collaborative strategies that guarantee the success of influencer marketing (Harris, 2023). With the ever-dynamic landscape, the company must be receptive to the various existing trends of virtual influencers since their effectiveness has been proven, and more consumers are easily attracted.

Conclusion

The business’s reliance on influencer marketing has catapulted its importance and made consumers aware of the products it sell. With the rise of updated technology, AI is slowly replacing traditional influencer marketing strategies. Human influencers are gradually being phased out due to their unreliance and ineffectiveness. It is imperative to note that they have been replaced by Virtual Influencers, the most effective in a generation where most users are online. With the rising diversity of the different influencing marketing strategies, the effectiveness of the strategies is dwindling due to the unreliability of the human influencers. Also, the businesses using the virtual influencers are bombarded by the absence of consumer trust on the computer generated entities. It is critical to note therefore that the success of the use of the diverse strategies of influencer marketing demands that business strike an equilibrium in terms of what human influencer marketing strategy works for them and how they can compliment the weakness with virtual influencers.

References

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Diawati, P., Mutalov, I. C., Kasmi, M., Abdullah, A., & Yuliastuti, H. (2023). Predicting the Indonesian sustainable marketing communication on 2023 trends. Jurnal Studi Komunikasi, 7(1), 016-033. https://ejournal.unitomo.ac.id/index.php/jsk/article/download/6142/2932

Gerlich, M. (2023). The Power of Personal Connections in Micro-Influencer Marketing: A Study on Consumer Behaviour and the Impact of Micro-Influencers. Gerlich, M.(2023). The Power of Personal Connections in Micro-Influencer Marketing: A Study on Consumer Behaviour and the Impact of Micro-Influencers, Transnational Marketing Journal, 11(1), 131-152. https://transnationalmarket.com/menu-script/index.php/transnational/article/download/296/303

Harris, I. (2023). The Effectiveness of Mega Influencers, Macro Influencers, and Micro Influencers in Forming Brand Evangelists. Jurnal Ilmiah Manajemen Ubhara, 5(02), 254-263. https://ejurnal.ubharajaya.ac.id/index.php/JIMU/article/download/2992/1608

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Loyen, J. (2023). How can influencer marketing be harmful to brands?. https://matheo.uliege.be/bitstream/2268.2/18812/4/s180614JeanneLoyen2023.pdf

Ohanian, R. (1990). Construction and validation of a scale to measure celebrity endorsers’ perceived expertise, trustworthiness, and attractiveness. Journal of advertising, 19(3), 39-52. https://www.tandfonline.com/doi/abs/10.1080/00913367.1990.10673191

Pradhan, D., Kuanr, A., Anupurba Pahi, S., & Akram, M. S. (2023). Influencer marketing: When and why Gen Z consumers avoid influencers and endorsed brands. Psychology & Marketing, 40(1), 27-47. https://onlinelibrary.wiley.com/doi/pdfdirect/10.1002/mar.21749

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