March 21, 2023

Institute Of Digital Studies

Impact Of Influencer Marketing on Digital Marketing In 2021

5 min read

The traditional marketing sector has changed completely in the last decade. The social media users and benefactors increased significantly and it has turned social media the best place for advertising. 

If you are even slightly familiar with Social Media, you might have come across influencer marketing. 5 years before, no one knew what influencer marketing was and it was a completely new term in the marketing sector. Businesses that saw this as an opportunity created long-term relationships with influencers. 

An influence marketer is someone who has sway over a certain group of people and can largely make an impact on their purchasing behavior. The influence marketing sector is growing rapidly and it will touch $20 billion within the next years. Influencer marketing is now undeniably a very profitable industry and it is here to stay in the long run.

A large number of businesses are concentrating on influencer marketing as a part of their digital marketing strategy and gaining good profit and recognition in the world. It is used as a direct marketing tool where the product is being showcased to new or potential customers. 

Here are some of the key impacts of influencer marketing on the digital marketing sector:

Direct Customer Engagement

Social media is filled with creators. But they become influencers only when they gain a certain power to change the purchasing behavior of their audience. Creators constantly engage with the audience and they know their likes and dislikes. Organizations make good of it and they choose the influencer as per their target audience.  

Influencers must build credibility while retaining a friendly attitude. They know how to move their audience and make them purchase the product that they are promoting. It is a subtle art of advertising. Digital marketing is about selling and promoting your product & services and now, influencer marketing has become a big part of it. 

You might have seen people promoting a product directly or indirectly. They will not tell you to go and buy that product but they will create a positive aura around the product. As a business, you don’t need to hire a professional influencer or a successful one. 

If you want to attract buyers directly, then start with unique influencers. They make creative content and their chances of getting viral are very high. 

A large Number of Influencers 

Initially, influencer marketing was not considered a profitable tactic. The number reach of some influencers was limited and they did not influence the audience as expected.

However, things changed drastically within the last 3-4 years and companies understood the importance of creators. 

Follower count stopped being an indicator of success now. Influencers with a small audience base also get good opportunities. Due to this, there has been a stronger focus on small content creators. This focus has resulted from larger trends in how our generation engages with content creators online.  Most companies prefer influencers who are active and post at least 2-3 content within a week. As a business, you don’t want to bombard people with your product but you also don’t want them to forget you. 

One or two posts in a week are enough for a business promotion. 


Today, we have data about everything. We can track user behavior and create advertisements according to their interests. 

The influencer data gathering is important to understand by the business. They analyze the data and choose the creator who suits their needs best. For example – an online food delivery company will target influencers who are into food blogging.  Every business decision is data-driven. However, small creators find it hard to analyze the user data and that’s why they require the assistance of digital tools. Many social media tools can be used for Data Analytics. Data-driven marketing techniques that were used in traditional marketing became more common with influence marketing. 

Now, these statistics-based data have become a key element of social media promotions and advertising. 

When a business launches a new product, big influencers can help them greatly. Some of the major content creators have millions of followers and their one post can create brand awareness in a large audience.

Role of Younger Generation in Influence Marketing 

Most of the big organizations have focused primarily on the younger generation. They are the ones who can be easily influenced by the creators. This generation decides within seconds. That’s why influencers have great control over their audience. They have a natural connection with their audience as they interact with them continuously. 

Various researches have concluded that the older generation is difficult to persuade via social media. They do not change their purchasing decisions based on an influencer. The main reason why influencer marketing has been so effective for young people is that they believe in content creators. Simply, traditional advertising is ineffective in connecting directly with this audience.

This is where the influencer marketing strategy comes into play. As a result, the businesses that have been successful in engaging this generation have just realized the enormous value they can provide as customers.

Great Market Share 

Social media has become the best place for advertising. Billions of people use social media daily. Companies can greatly enhance their reach with the help of influencers. The market value of the influencer market will reach $20 billion and most of the companies are using creators as a direct source of advertising. It not only creates product awareness in the audience but they also see an increased sales. 

Businesses have realized that influencers already have a good user base and they won’t have to create their channels to engage with customers. This work can be done via influence marketer. They can easily hire content creators and use their audience as a potential customer base. They won’t have to invest in creating a social medial structure of their own for marketing purposes. 

Companies have started interacting with the customers using influence marketing. They hire social media creators who have a solid user base and it further helps them in acquiring loyal consumers.  

The Future

Although the digital marketing business is seeing rapid development, experts believe that influence marketing will create a big change in the upcoming years. The influencers will have to change their tactics as per the user base. Content creation has now become a business and it is profitable for both: the companies and the influencers. 

As per the law, influencers will have to notify their audience when they create a paid promotion.

To understand more about influence marketing, more and more people are getting into digital marketing courses. If you want to earn some reputation in social media, it is time you should understand digital marketing as a whole.

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