Case Study #5 _Cristina Solorzano
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Cristina Solorzano MKGT Strategy SID: 110566104 Case Study #5
Social Media and Influencer Marketing According to Forbes’ Top Creators list of 2023 (Bertoni, 2023), the three social media cites harboring the top influencers in the market are Instagram, TikTok and YouTube. Each of these platforms reaches different demographic targets and exploit different influencer capabilities, which will be analyzed in continuation: Instagram: Demographic Targets: According to Omnicore (Aslam, 2024), Instagram has two billion monthly active Instagram users of which 48.2% are female and 51.8% are male. 61.9% of their users are between 18- to 34-year-
olds. Furthermore, 87% of all Instagram users are from outside of the US. Platform Capabilities: Instagram allows users to post feed pictures, reels, stories, and live stream. Within the app, Instagram Shop is also available, which allows users in app purchases of their favorite brands. To access Instagram Shop, Influencers utilize product tags in their images or videos that people can easily tap on to access the product shown (Instagram, 2024). However, product tags can also prompt users to the brand’s website in case they have not set up their own catalogue in Instagram Shop, which is the norm for micro to nano businesses. Effectiveness as an Influencer Platform: Omnicore depicts, 0.59% of Instagram accounts to have reached one million followers which constitutes an adequate yet not exceptional influencer platform considering a good bulk of that percentage constitutes business accounts (two hundred million accounts) and celebrities (Aslam, 2024). However, there are still more than 500,000 active influencers on Instagram, who accept more than half of the marketing budget for almost 20% of marketers (Aslam, 2024). Approach for Exploitation: According to Omincore, 87% of all influencers are nano and micro influencers which constitutes accounts with up to 10k and 100k subscribers respectively (Aslam, 2024). This is therefore a great platform for exploiting hyper-niche communities with a need for more targeted marketing strategies. Furthermore, 25% of sponsored posts are fashion related which presents a good platform for small fashion brands to exploit their limited budgets through nano and micro influencers whose average quota is $100 per post (Aslam, 2024). TikTok:
Demographic Targets:
According to Omincore (Aslam, 2024), TikTok has 1.8 billion monthly active users, of which 54% of users are female and 46% of users are male. Statista (2024), reports that 69.3% of TikTok users are between the ages of 18 and 34. The US has the most TikTok users with113 million users, followed by Indonesia with 110 million users (Statista, 2024). Platform Capabilities: Users can post their short duration videos as feed videos or short-term stories for the global audience to see and interact with, or with their selected audience preferences. Furthermore, TikTok has live streaming available. To access the products being advertised through the platform, TikTok has its in-app ecommerce shop called TikTok Shop (TikTok, 2024). Influencers can promote, sell, and engage with their audience through live shopping and videos with product links that are displayed in app shop catalogues. Effectiveness as an Influencer Platform: TikTok is a platform that provides high earnings for mainstream influencers up to $105,770 per sponsored post (Aslam, 2024). Audience engagement with influencers is superior to other social media channels such as Instagram and YouTube who usually average between 2-4% engagement rates across all influencers. TikTok provides a 17.96% engagement rate for micro influencers and 11.4% for mega influencers (Statista, 2024). Approach for Exploitation: To further exploit TikTok, marketers (Mussen, 2023) have utilized a phenomenon of lifestyle trends and aesthetics. Microtrends have reigned in the platform since the pandemic and continued to be successful despite the rise of trend fatigue (Navlakha, 2023). Although Instagram has allowed niche marketing, these microtrends transcend even their intended niches. For example, the aesthetic “Quiet Luxury” is still present now which highlights brands that offer timeless aesthetics and high-end products (Navlakha, 2023). Marketing in TikTok is less of offering a product, but offering a product that fits the current lifestyle trend that is popular in the app. Influencers have so much power as they are the creators of the lifestyle trends that products want to be part of. YouTube: Demographic Targets:
According to Omnicore (2024), YouTube has a total of 2.5 billion monthly active users with 54.4 % of male users and 45.6% of female users. Furthermore, 95% of the global internet population watch YouTube (Global Media Insight, 2024). YouTube is most popular with millennials, with 20.3% of all global users in the age bracket of 25-34 years old, followed by 17% of global users being in the age bracket of 3-44 years old (Global Media Insight, 2024). Platform Capabilities:
YouTube allows users to post videos onto their main channel and in their designated short-from content space. Live streaming is also available. Different to other social media apps, YouTube allows content creators to introduce sponsored video ads made by the brands into their videos. These sponsored video ads are catered to the person, which means influencers only open the space for them to air on their channel, just like a television ad. Furthermore, influencers can shoutout or introduce sponsored products in their own videos, and post links to the brand’s websites onto their video descriptions. Effectiveness as an Influencer Platform: According to Omnicore (2024), YouTube is used by 55% of marketers and 84% of the app viewers have bought from a brand after seeing it on YouTube. Furthermore, YouTube ads allowed brands to increase the likelihood of short-term sales by 30%, especially with pre-roll skippable ads (Aslam, 2024). Approach for Exploitation: YouTube is the perfect place to highlight all the product’s usages and features in the most detailed way. Usually, YouTube is the best place to market high-valued products such as electronics, automobiles and even subscription-based products since the app allows the time to fully explain the product which what consumers is seek before buying a high-priced product. As YouTube is based on what you search for, brands need to invest in understanding who their niche target watches and follows. Traditional Tv Ads vs Social Media Influencer Marketing Marketers must choose the promotional tool that will give them the best benefits with the least tradeoffs. The following is a comparison between traditional and social media advertising in important dimensions: Traditional Advertising Vs Social Media Influencer Advertising Cost Between traditional tv advertising and social medial influencer advertising, the cost per thousand impressions (CPM) is almost 14 times more costly for TV ads with $28 CPM vs social media ads with a $2.5 CPM (Lyfe Marketing, 2024). For Tv ads, the hidden costs are the broadcast channels and the peak times to advertise (more costly during popular shows). For social media influencers advertising the costs only depend on the individual influencer’s rate per sponsored post (Lyfe Marketing, 2024). Message Control Traditional marketing is usually more controlled by the business while influencer advertising is about the influencer’s experience with the brand. Although there are certain points that influencers must talk about during their sponsored post, the creative direction of the ad is up to the influencer entirely (Lyfe Marketing, 2024). Customer Engagement Social media advertising allows customer engagement, while traditional advertising does not. Influencers can respond to their audience’s questions and comments, whereas in TV ads customers have no way of communicating with the brand when they see the ad (Lyfe Marketing, 2024).
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