Will the "Real" Influencers Please Stand Up?

I came across an article on Ad Age about online influencers and wanted to share my 2 cents. The gist of the article is that brands tend to turn to "influencers" with the highest Klout score (i.e. those with the most followers, responses and shares) when it comes to endorsing their products/services, even though they may not have the power to influence actual purchase decisions.

"Most consumers' purchases are not influenced by someone who tweets frequently or scores high on Klout, but rather by a person's tight-knit group of family, friends and peers who share common interests and have earned trust regarding purchasing decisions."

This is partially true. Celebrities come to mind. Just because I follow Lady Gaga (who just surpassed the 20 million follower mark on Twitter) doesn't mean I'll buy a product she Tweets about. At the end of the day, it boils down to what my mom or friends recommend.

For smaller brands or businesses, this is a positive thing. For instance, instead of spending time bidding on high-profile personalities (who undoubtedly cost more than your average Joe and will likely choose the bigger brand in the end), they can focus their energies on cost-efficient, niche bloggers whose content is highly relevant to their product and will therefore have stronger influence in terms of encouraging purchase. Save time + save money + more targeted reach.

For example: Your family runs a small bakery and you want to increase sales by attracting new customers. Reach out to your friends. Perhaps one of them is, or knows, a local food blogger. Once you find them, have them review your bakery. Although their reach may not be as wide, their followers are likely real-life friends or other locals who hold them with high regard (otherwise why follow a stranger?). If your bakery is good, the "pass-around power of everyday people" will take over.

But what about larger brands who don't really "need" more exposure, such as Coca-Cola? By the time you hit a certain age, you've pretty much decided whether you're a Coke person, a Pepsi person, or a non-soda drinker. How much difference would it really make to a non-soda drinker if his friend "recommended" Coke to him? Perhaps he'd remember to buy Coke instead of Pepsi the next time he threw a house party.

Sometimes, it's not about increasing your consumer base, but about keeping the interest of your existing one to encourage repeat purchase. Not to say brands like Coke don't want new converts. Of course they do! However, the bulk of their sales come from loyal consumers so it's important to keep them excited. And sometimes, all it takes is an encouraging Tweet from their favorite celebrity or Lady Gaga to keep their excitement going.

Thoughts? :)

xoxo
Mae