Advertising is the lifeblood of business, which naturally means that nearly every business advertises in some way. From print to banners and the internet, it’s hard to go one day without being exposed to dozens of ads. Needless to say, this overexposure leads adaptation, and people in the advertising industry have coined a term for this phenomenon – banner blindness. This subconscious phenomenon leads to a particularly interesting fact: you are more likely to win the lottery, than you are to click a banner ad, according to Business Insider.
This might lead you to believe that cost of advertising is going down, and you’d be right about certain kinds of advertising, but the truth is that pay-per-click ad costs are going through the roof. PPC ads are displayed on the front page of a search engine, and with limited space, and high competition, the price of PPC ads has gone up by 60% in 2016 alone.
So with banner-blindness, ever expanding costs, and ever dwindling engagement rates, many businesses are left wanting, especially businesses that operate on a tight marketing budget. This is where microinfluencer marketing comes in – a cost-effective, easily accessible advertising alternative to PPC ads.
Looking at the numbers
The low engagement of PPC ads cannot be solely attributed to the PPC advertising medium itself. The rise of social media also plays a role in the dropping effectiveness of PPC ads. Social media allows users from around the world to interact, share ideas, and, more importantly, discuss products.
This means that a new style of word of mouth advertising is making a resurgence. In fact, if we take a look at the numbers, we see that:
· 74% of users will take social media into account when making a purchasing decision
· 84% of respondents from 58 countries say that word of mouth recommendations are the most influential factor in a buying decision
· When clients find a brand through a word of mouth recommendation, they extract 16% more value over the lifetime of the business relationship
To top it all off, in 2015 alone, ad blocker use saw a 41% rise globally, costing advertisers an estimated $22 billion.
So it’s obvious that word of mouth marketing is the way to go, but why place an emphasis on the micro in microinfluencer? At Verifyed, we have consistently seen that an influencer’s engagement rate drops the more followers he has, from an 8% engagement rate for influencers below 1,000 followers, to 1.7% for influencers with 1 to 10 million followers.
This means that you can hire a network of microinfluencers for a campaign, and have a much higher engagement rate, instead of hiring just one large influencer. On top of that, if you use a microinfluencer platform like Verifyed, everything will be automated. You will have access to a large database of influencers, in a wide variety of niches, with all the prerequisites already in order.