To boost sales and improve visibility, more and more businesses are turning to influencers for marketing support. Some reports suggest that 1 in 8 businesses already use influencers, and this number is expected to rise significantly in the coming years.
The global influencer marketing industry has more than doubled in size since 2019. In 2022, it was valued at a record $16.4 billion, with projections estimating it will reach $24 billion by the end of 2024.
The use of influencers raises legal considerations for both businesses and influencers. Over the next few days, we will explore what to expect and what to look out for in contractual agreements.
What Are Influencers?
Influencers are individuals who have built credibility, expertise, or appeal within a particular niche or industry. They leverage platforms such as Instagram, TikTok, YouTube, and LinkedIn to connect with audiences, sharing content that resonates with their followers. Unlike traditional celebrity endorsements, influencers often have highly engaged audiences who trust their recommendations, making them powerful brand advocates.
Influencers range from mega-influencers with millions of followers to micro-influencers who command smaller yet highly targeted communities. Businesses carefully select influencers whose personal brand aligns with their own, ensuring relevance and authenticity in their campaigns.
Why Do Businesses Use Influencers?
Key reasons businesses partner with influencers include:
- Targeted Reach: Influencers have established audiences, often segmented by specific demographics or interests. This enables businesses to tailor campaigns effectively, reaching the right people at the right time.
- Credibility and Trust: Consumers are more likely to trust recommendations from influencers they follow than traditional advertisements. Partnering with influencers helps businesses build trust and establish an authentic connection with their audience.
- Cost-Effective Marketing: Influencer marketing can be more affordable than traditional advertising channels, particularly when working with micro or nano-influencers. These smaller-scale influencers often achieve higher engagement rates at a lower cost.
- Engagement and Conversions: Influencers create engaging content that drives user interaction—whether through likes, shares, or comments. Their content can inspire followers to take action, such as making a purchase, ultimately boosting conversions for businesses.
How Influencers Benefit Businesses
By partnering with influencers, businesses can increase brand awareness, build trust, and foster customer loyalty. Influencers humanise brands, creating relatable and authentic content that resonates with audiences.
As influencer marketing continues to evolve, legal guidance is essential for both businesses and influencers to mitigate risks, follow best practices, and ensure compliance with relevant regulations. Berry Smith advises businesses engaging in influencer marketing as well as influencers themselves.
For any queries, please contact our commercial team at 02920 345511 or commercial@berrysmith.com.