Module 6

Influencer Marketing & Social Commerce

Part 1: Influencer Marketing

1. Evolution of Influence

Marketing has shifted from traditional celebrity endorsements to a reliance on peer recommendations. Social media has amplified "word-of-mouth," leading to a new form of collaboration where brands partner with content creators—from nano to mega influencers.

2. Why It Works

• Trust: Consumers believe individuals more than corporate ads.
• Targeted Reach: Influencers have dedicated, niche communities.
• Authenticity: Their content feels real and relatable, not salesy.
• Creativity: Influencers often act as mini-agencies, producing high-quality content.
• Platform Know-how: They are masters of platform-specific trends and algorithms.

Note: Instagram is the top platform for influencer campaigns.

3. Roles of Influencers

• Content Creator: They translate a brand's message into their own unique voice.
• Media Channel: They distribute content naturally to their followers.
• Endorser: They recommend products like a trusted friend, which reduces consumer resistance.

4. Psychology & Stats

• 74% of people trust the opinions of friends, family, and influencers.
• 92% trust influencers more than company ads.
• 49% of consumers rely on influencer recommendations to make a purchase.
• 82% are likely to act on an influencer's advice.
• 40% of millennials feel that influencers "get them" better than their own friends.

5. Types of Influencers

By Followers (Reach):

• Mega (>1M): Best for mass awareness but have low engagement (~1.5%) and are very expensive.
• Macro (100k–1M): Offer a good balance of scale and trust, with strong content.
• Micro (10k–100k): Known for high engagement (3–6%) and are highly trusted by their audience.
• Nano (<10k): Hyper-local and the most engaged (up to 8.8%), making them ideal for niche markets.

By Platform: Instagram (visual), TikTok (viral short video), YouTube (long-form), LinkedIn (B2B), Twitch (gaming).

By Funnel Stage:

• Top of Funnel: Mega/macro influencers for awareness.
• Middle of Funnel: Micro influencers for building trust.
• Bottom of Funnel: Nano/affiliate influencers for driving conversions.

By Relationship: Celebrities, Key Opinion Leaders (KOLs), brand advocates, and employees (who are highly trusted).

6. Celebs vs. Influencers

Aspect	Celebrities	Influencers
Reach	Mass	Niche
Trust	Less authentic	Relatable
Cost	Very expensive ($$$)	Budget-friendly
Engagement	Low	High
Control	Scripted, slow	Fast, collaborative
Risk	High (bigger damage from scandals)	Lower

Case Studies:

• Fail: Pepsi's collaboration with Kendall Jenner felt inauthentic.
• Success: GymShark's strategy of partnering with micro-influencers.

7. Traits of a Good Influencer

A great influencer is a perfect match for your brand. Key traits include:

• Audience Fit: Their followers are your target customers.
• Engagement: Their comments, saves, and shares are genuine and meaningful.
• Voice Fit: Their tone aligns with your brand's.
• Storytelling: They can naturally integrate your product into their content.
• Performance: They follow briefs and use subtle calls-to-action (CTAs), which can be 32% more effective.

8. Choosing the Right Influencer (VETS Framework)

• V – Voice & Values: Do they align with your brand identity?
• E – Engagement: Look beyond likes for meaningful interaction.
• T – Target Audience: Do their followers match your customer persona?
• S – Style & Substance: Evaluate the creativity and quality of their content.
• ⚠️ Red Flags: Sudden follower spikes, repetitive captions, generic comments, too many brand collabs, or a lack of niche focus.

9. Measuring ROI

• 80% of marketers believe influencer marketing is effective.
• 89% say its ROI is equal to or better than other channels.
• Pricing models: Per post, per reach (CPM), per engagement, or performance-based (CPC, sales, referrals).
• Challenges: Measuring multi-touch influence and offline sales can be difficult.
• Solutions: Use proxy metrics, attribution models, and in-market tests.

10. Virtual Influencers (VIs)

• What they are: 100% digital characters, such as Lil Miquela and Shudu.
• Why they are followed: People are drawn to their escapism, consistency, flawless aesthetics, and the feeling of a "parasocial bond."
• Pros: No scandals, fully customizable, and precise brand alignment.
• Cons: They may lack emotional depth, and there are ethical concerns about representation.
• Future: Hybrid strategies combining VIs with human influencers are emerging, especially in fashion and tech.

Part 2: Social Commerce

1. Basics

Definition: Shopping directly within social media platforms.

• E-commerce vs. Social Commerce:
  • E-commerce: Shopping on a dedicated website or app (e.g., Amazon).
  • Social Commerce: Shopping inside a social platform (e.g., Instagram Shop, TikTok Shop).
• Market Size: The market grew from $992 billion in 2022 to a projected $2.9 trillion by 2026.
• Evolution: Began with Facebook Marketplace (2007) and has evolved to include Instagram's shoppable posts (2018) and TikTok Shop (2020).

2. Key Platforms

• Facebook Shops: Easy to set up, cross-platform, and ideal for small businesses (SMBs).
• Instagram Shopping: Uses product tags, Reels, and live shopping. Perfect for visual industries.
• TikTok Shop: Integrates short-form video, viral trends, and live shopping, making it great for Gen Z.
• Pinterest: Known for "buyable pins" and is a discovery-based platform, best for DIY, home decor, and weddings.
• WhatsApp Business: Offers catalogs and direct orders, excellent for one-on-one customer service.
• YouTube Shopping: Integrates with reviews, tutorials, and live shopping, suitable for tech and beauty products.

3. Brand Benefits

• New Purchase Channel: Live shopping can lead to up to 30% conversion rates.
• Direct Customer Connection: Enables direct interaction and builds trust.
• Precise Targeting: Leverages social media data for precise ad targeting.
• Feedback: Provides an easy way to collect feedback via comments and DMs.
• Instant Gratification: Appeals to Gen Z/Millennials' desire for immediate results.
• Scalable Growth: Offers a global reach for businesses.

4. Consumer Psychology

• Social Proof: Likes, reviews, and user-generated content (UGC) build consumer trust.
• FOMO (Fear of Missing Out): Limited-time offers and countdowns drive impulse buys.
• Authenticity: UGC and micro-influencers are often more trusted than highly polished ads.

5. Tools & Features

• Native Shopping: Platforms offer built-in checkout features (e.g., IG Checkout, TikTok Shop).
• AI & Personalization: Algorithms provide tailored product recommendations based on user behavior. 72% of users only engage with personalized content.

6. Growth: China vs. USA

• China: A leader in social commerce, with a $3 trillion live commerce market dominated by KOLs/KOCs (Key Opinion Consumers).
• USA: The market is growing but slower. 61% of users under 25 have already shopped via social media.

7. Analytics & KPIs

• Key Metrics: Engagement Rate, CTR, Conversion Rate, AOV (Average Order Value), Retention Rate, ROAS (Return on Ad Spend), and CLV (Customer Lifetime Value).
• Benefit: Weekly reviews can improve campaign success by 20%.

8. 7-Step Social Commerce Strategy

1. Define objectives (e.g., sales, engagement).
2. Profile your target audience (personas).
3. Choose the right platforms.
4. Create a balanced content plan (mix of educational, promotional, and UGC).
5. Collaborate with micro/nano influencers.
6. Set up your shop on the chosen platform, optimizing titles and visuals.
7. Track KPIs and adjust your strategy weekly.

9. Practical Tactics

• Create end-to-end purchase journeys directly on the platform.
• Run live shopping events with Q&As and clickable links.
• Use UGC and branded hashtags for social proof.
• Utilize shoppable posts, Reels, and Pins for instant buying.
• Implement AI chatbots for 24/7 customer service.

10. Trends to Watch

• AR Shopping: "Try-on" filters and virtual reality rooms.
• NFTs: Digital collectibles and assets.
• Voice Commerce: Hands-free shopping via smart assistants.
• Sustainability: Consumers are increasingly preferring eco-friendly brands.
• AI-driven Personalization: 75% of marketers are expected to adopt this soon.

✅ Key Takeaway:

Influencer marketing builds trust, authenticity, and niche reach. Social commerce turns social platforms into shopping destinations. Together, they represent the future of digital marketing.