In this two part post, I’ll cover the rise of influencer marketing as a promising practice for social businesses and how to win the race to seize its benefits.

This first post will detail why influence marketing will enjoy very strong increases in marketing investment from brands in the coming years as they will realize it is a key element of their digital communication strategy.

Influencer marketing is expected to be one of the fastest growing areas of social media in the coming years and a new area of focus for brands engaging in social media marketing.

Some say it is the new Eldorado. Should we be surprised?

I remember one New Year’s prediction vividly. Someone said, “2013 will be the year of influence”. Three months into the year, I can feel that statement manifesting itself.

Our contact page is “ringing off the hook”. Influencer marketing has suddenly taken on a new dimension. 

Digital PR pioneers paved the way for this new discipline and they continue to make extraordinary waves. Recently though, I’ve had insightful discussions with heads of strategy at global ad agencies. Social influence is on their minds and finding its way to the hearts of their brand strategies. 

I am not surprised. Things had to change, for these reasons:

Investment in social media marketing doesn’t match potential impact

Investment in influencer marketing is dramatically low proportionate to its potential impact on consumers. While consumers consider social content to be one of the most worthy sources of information (just after friends and family advice), social media marketing budgets remain surprisingly limited. 

A recent study(2) estimated investment in social amounts to only 10% of total digital communication budgets. 

Marketing spend does not match potential impact

Social media spend is over-concentrated on top networks, esp. Facebook 

It’s absurd to me that 75% of social media budgets are invested on Facebook and Twitter. Yes, the two leading platforms are huge traffic generators, but they are certainly not the only place where content is shared and where influence takes place.

Asking your friends is not always the best way to obtain information about a service or a product. 140 characters do not allow for a very articulated argument.

Influencers use a much richer combination of channels to publish their content: blogs mostly, and - increasingly - public content-driven platforms such as Quora, Pinterest or Instagram. It is time for brands recognise that. 

Breakdown of Social Media Marketing Spend

This would leave only 0.6% of digital money left for influencer marketing today…. Clearly some brands out there are starting to question whether they are putting their marketing money in the right bucket and a few brave souls have recognized that the “early mover's advantage” window won’t be open long.

So, I am not surprised that: 

  • Investment in social media in general will continue to grow this year.  
  • The share of influencer marketing spend will increase dramatically because it’s one place where a brand can experience disproportionately large impact given their investment. 

From where I sit, influencer marketing is clearly the next social media Eldorado. It’s where the bold and creative are finding gold and claiming their stake. 

In Part 2, I’ll talk about the four toughest challenges marketers face in the Gold Rush to influencer marketing and how to overcome them to win. 

You can find our more in our guide to influencer marketing. 

Nicolas Chabot

Published 20 May, 2013 by Nicolas Chabot

Nicolas Chabot is VP EMEA at TRAACKR and a contributor to Econsultancy. You can connect with Nicolas on LinkedIn, Twitter or Google Plus

9 more posts from this author

You might be interested in

Comments (4)


Mark Montonara

Interesting blog. I agree that the social media landscape is in a state of flux. How are you measuring ROI for clients any differently for an influencer marketing strategy versus a more 'traditional' social media campaign?

about 5 years ago


Nicolas Chabot

Thanks Mark for your comment. Your point on measurement anticipates what I will cover in Part II as a key challenge of influencer marketing.
You need to look at this in two steps:
1) What is the impact of my activity, ie - is my engagement with influencers bringing any tangible results/content being published ?
2) Is that content producing any business outcome ? And here you need to measure based on your objective: are you looking for sales leads, awareness, brand image.....
At the end of the day, the key is to know what you want to achieve

about 5 years ago


Bobby isaacson

I agree and disagree with this write up and wish the author had provided some further thoughts because I think he was onto something.

I think the larger opportunity really lies in social word of mouth in general. Brands shouldn't limit themselves to traditional "influencers" but empower all their advocates (fans, customers, employees, etc.)

92% of consumers worldwide trust recommendations from friends and family more than any form of advertising, up from 74% in 2007 - Nielsen Global Trust in Advertising Survey, 2011

Brands can tap into not just dozens of influencers but tens of thousands of advocates to support marketing initiatives through out the year. And not to mention, working with advocates can be particularly cost efficient vs traditional "influencers"

So I agree there is a ton of potential in social word of mouth, but look beyond just influencers.

about 5 years ago

Nicolas Chabot

Nicolas Chabot, VP EMEA at TRAACKR

Thanks Bobby.
I agree and influence clearly goes far beyond those key individuals that drive conversations. And looking into your fan base for influencers/advocates is a good starting point as @vikkichowney pointed out on her "engager" interview on the Traackr blog.

However engaging with "tens of thousands" of advocates is a very different process than building relationships with selected influencers. Influencers also open up to new fields of opportunity and communities…beyond your existing customer base.

So, it's is all about make it all work together !

about 5 years ago

Save or Cancel

Enjoying this article?

Get more just like this, delivered to your inbox.

Keep up to date with the latest analysis, inspiration and learning from the Econsultancy blog with our free Digital Pulse newsletter. You will receive a hand-picked digest of the latest and greatest articles, as well as snippets of new market data, best practice guides and trends research.