- 1. Influencer marketplace definition
- 2. Advantages and disadvantages
- 3. When to choose an influencer marketplace
- 4. Top trends within the influencer marketplace
Table of contents
Influencer marketplace definition
For those of you unfamiliar with an influencer marketplace, also commonly referred to as an influencer network, it is an internet database allowing both brands and influencers to actively create their profiles, share their information and look for collaboration opportunities with each other. The data in a marketplace is given by the user, and the company will analyze those data to match with "best-fit" brand to give out collaboration suggestions. Different influencer marketplaces will have different matching algorithms to ensure that the predictions and suggestions of their systems are the most accurate on the market.
Influencer marketplaces are totally different from influencer marketing platforms. Influencer marketing platforms collect the data directly from social media channels (e.g. Instagram, YouTube, Twitter), analyze the data and transform them into useful information for marketers. The marketplaces are more limited because they build their databases from their registered influencers and brands, but they have more chance to design and optimize their database structure.
Advantages and disadvantages
The no.1 purpose of an influencer marketplace is to connect influencers with brands for potential collaboration. To be listed on any influencer marketplace, an influencer needs to register their profile on the vendor's website, then provide basic information e.g. channel name, follower numbers, average like per post, etc. Brands also need to list themselves on the marketplace by answering basic questions about their influencer marketing campaigns e.g. budgets, requirements, target industry, etc. Then, the influencer marketplace e.g. Revfluence will compare the matching possibility of both sides to suggest a list of "potential" influencers for marketers.
However, due to the limited size of their databases, marketplaces cannot guarantee to deliver the perfect-fit influencers, especially the niche influencers who have less than 15,000 followers. By answering just simple questions, influencers listing on marketplaces cannot provide the full and up-to-date picture of their profile. As a result, marketers can only score influencers solely based on vanity metrics such as follower count, no. of likes and shares, which are completely not sufficient for evaluating influencer marketing performance. Additionally, the trustability and preciseness of the information that an influencer gave to an influencer marketplace is also an issue. Brands working with influencer marketplaces are more vulnerable to fake influencers, which is one of the most critical issues in the industry nowadays.
Influencer marketing platform, on the other hand, collects data directly from social media sites such as Instagram and YouTube to provide objective and real-time data. With more than 700 million active users on Instagram per month, not to mention the other social media platforms, it’s a real challenge for influencer marketers to identify who among these users are real influencers, much less who the best-in-class influencers that your brand should collaborate with are. In this case, a platform is handier for brands, especially those are present all over the world. Furthermore, most influencer marketing platforms have better analytics features than marketplaces. Marketers can evaluate and compare the quality between potential influencers much easier by looking into sophisticated influencer marketing metrics e.g. follower growth, media value per post, earned media value and audience quality.
When to choose an influencer marketplace
If your brand is running a small influencer marketing program, meaning less than 5 collaborations per month, or would like to simply test influencer marketing for the first time, then an influencer marketplace may be an adequate solution to get you started. Additionally, because influencer marketplaces have fewer capabilities and generate revenue both from brands and from influencers, they tend to be less expensive than influencer marketing platforms.
However, If your brand is ready to scale your influencer marketing efforts, it would be nearly impossible to do so without the proper tools. Thus, brands looking for a full-service influencer marketing solution should consider investing in an influencer marketing platform. These powerful platforms with specific features can provide better data-driven analytics, campaign management workflow, relationship management that enable brands to run small to larger scale influencer marketing campaign with trackable results.
Top trends within the influencer marketplace
Instagram is Running The Influencer Show
At this point in time, the media giant Instagram is taking over influencer marketing. Influencer management agencies are aware of this and are dedicating most of their time and resources to maximizing the effectiveness of advertising campaigns on this social media platform alone. While YouTube, Facebook, Pinterest, and Twitter all command huge influencer marketing power, Instagram is a far less inhibited medium and is perfectly streamlined for influencer advertising to be really effective at driving a huge ROI for advertisers.
Influencer Based Marketing Seeks Millenials
Almost all of the prominent influencer management agencies spend most of their time seeking out promising millennial-aged influencers to represent. If you're outside of the millennial age range, then chances are it will be much more difficult for you to tap into huge audience segments that increasingly average a much younger median age range.
More Influencer Content is Sponsored Than Ever Before
According to an extensive study conducted this year on influencer-based marketing, nearly 75 percent of the content being published by these prominent digital personalities is sponsored by advertisers. It used to be thought that sponsored content typically generated a less than impressive engagement rate compared to organic content, however, this myth has steadily been broken as strategic sponsored content has proven to be just as engaging, especially as the art of influencer advertising evolves in its methods.
Facebook Live and Instagram Live Are Gaining on Instagram
While influencer-based marketing is absolutely thriving on Instagram, Facebook Live and Instagram Live are quickly gaining influencer market due to users increasingly wanting access to video-based content. While YouTube offers an extremely rich content experience, some users report that they find it hard to deeply engage with the content as compared to the other platforms.
Overly Commercial or Sponsored Content Isn't Doing Well
According to current trends, internet users are increasingly ignoring influencer content that is overly commercial or obviously sponsored. The fact that influencers today are releasing more commercial and sponsored content than ever before and influencer-driven media is growing, that would lead experts to believe that influencers are becoming increasingly skilled at subtle advertising techniques that don't offend, mislead, manipulate, or otherwise turn off their target audience.
Influencers Are Demanding Creative Control
Advertisers that use influencers to market their products and services are being forced to come to terms with the fact that influencers are increasingly taking creative control over all commercial and sponsored activity taking place on their platform. The reason for this is that audience groups, particularly millennial-aged users, are becoming increasingly sensitive to content that feels less than organic. Preserving the integrity and positive engagement rates of an audience is an influencer's top priority, so they are no longer taking as many risks with their content as they once were in times past.