The Real Cost of Social Media Promotion for New Brands
A recent story highlighted by Wired detailed the challenges that new brands face in getting their products and services promoted on social media. The rise of the influencer movement has been especially pronounced in the beauty industry, but it is a source of confusion for brands in many different industries as they try to navigate how to authentically and ethically promote their brands online. New brands tend to fall prey to influencers and excessively expensive online marketing schemes because they feel the pressure to get their products and serviced noticed as soon as possible so that they can develop a loyal following.
In the beauty industry, influencers are not just those who have risen to fame through reality tv stints or viral videos. They are beauty gurus who have massive followings of subscribers who are interested in their beauty tips and tricks. When a product is promoted by these well-known influencers, it tends to fly off the shelves because their followers are eager to achieve the same look being featured by the influencer. The same can be said for nutrition and fitness influencers because they have achieved a certain physical look that so many of their subscribers want to earn for themselves. This means that whenever one of those fitness influencers uses a particular type of protein powder or sports drink, their followers associate that product with their own pathway to fitness and health.
When new brands build a budget for their social media marketing, they often do not realize that they should be prepared to pay influencers a pretty penny to sponsor a post for their brand. The key is that the brands also have to invest in research to find out which influencers are most connected to their target customers. If a brand is paying an influencer to speak about their products without having any real connection to their audience, then the promotion is practically meaningless. It essentially has the same impact as a random peer posting something positive about the brand online in a review or comment.
Influencers have been able to demand high prices for their social media promotion activity, but there has been a recent backlash about the amount that some brands are willing to pay ambassadors for their positive reviews. Some influencers simply receive a free product or access to a free service in exchange for what they are told should be an honest review of the brand. However, the fact remains that influencers depend on these relationships with brands as a source of income, which means that their reviews are not actually unbiased. The value of the influencer for the brand is drastically diminished when the public starts seeing them as an extension of the brand and a paid promoter. Perceived authenticity is key when it comes to maintaining the value of the influencer to the brand.
One of the sticking points that have prompted consumer rights groups to pour over Federal Trade Commission regulations regarding paid online ads is when influencers do not disclose that they have been paid to sponsor a brand. Many influencers receive guidance from brands on the talking points that should be conveyed in their posts, but the influencers are allowed autonomy over the way that they deliver the message. Although the sponsored posts almost all remain unscripted, the content of the post is decided on amongst the influencer and the brand representative ahead of time.
Another way that influencers make money off of their relationships with brands is through the use of affiliate links on their posts. Their followers can access these links in their sponsored posts, and any sales that are made through the affiliate links are tracked by the company. The influencer earns a percentage of each sale through the affiliate link. As part of federal regulations on influencers and their sponsored posts, they are required to disclose when one of the links in their social media posts is an affiliate link. The idea is that the customer should know when the influencer is receiving a portion of any sale so that the motivation behind the sponsored post is clear.
Some brands have experienced the wrath of a negative sponsored post or video from an influencer. Some brands pay influencers to trash their biggest competitors on social media. This activity is particularly risky for brands because it can result in expensive litigation and a serious blow to their online image if customers start to find out that they were behind the negative posts. There are now influencers who spend their time detailing the politics of the influencer community and exposing some of the worst tactics from their colleagues.
There does not seem to be an end in sight to the influencer draw for brands that do business over social media. If a new brand is able to identify a potentially beneficial relationship with an influencer who matters in their industry, it is most likely worth pursuing. The brand should be careful to ensure that the influence follows ethical advertising practices and fully discloses that they are involved in a promotional relationship with the brand. Failure to disclose this information could result in trouble with advertising regulators as well as a backlash from influencer watchdogs and consumer rights groups. It is simply not worth the risk to the brand’s reputation, which can take a lot of time and money to rebuild if tarnished within its market.
Some newer brands are attempting to get around the expensive cost of working with influencers on social media by encouraging more authentic customer engagement with their posts. They highlight active followers on their page and respond to public comments. This is less expensive and also comes with fewer risks to a brand’s reputation. When a brand is connected to an influencer, it runs the risk of the influencer being blasted on social media for some activity unrelated to the brand. There could still be repercussions for the brand because the public does not easily dissociate the influencer from the brand itself.
