With 4.59 billion daily social media users in 2022 and a continuing upward trend, startups can tap into a vast potential audience scattered across the globe. However, breaking into the market and attracting attention can be challenging, regardless of the quality of the offer.
This is where influencers play a crucial role- —well-known personalities with influence over your target audience.
The rising popularity of influencer collaborations, evident from the 71% increase in marketers' influencer marketing budgets, showcases their effectiveness for businesses. By leveraging an influencer's established trust with their followers, startups can create demand and initiate a chain reaction that helps build a reputation and drive profitability in a shorter time frame.
Let's find out what impact you can create with startup influencer marketing for your startup.
What is Influencer Marketing, and How Can it Benefit Startups?
Entrepreneurs newly launching their businesses have two problems: no reputation (so they have to build one from scratch) and a limited budget.
While organic channels take time and paid ads may not reach the right prospects, collaborating with the right influencer ensures that your offerings are seen by individuals who have a genuine need and align with your target customer persona. By associating with an influencer, startups can establish trust and alignment with the influencer's audience, effectively building their reputation and reaching their goals.
Here are some benefits startups can leverage by investing in influencer partnerships:
Influencers give startups access to a specialist or targeted audience that fits with a startup's target market. Startups can connect with prospective customers who are more likely to be interested in their products or services.
Increased Brand Recognition and Credibility
The visibility and credibility of a startup's brand on different social media channels can be considerably enhanced when a reputable influencer suggests or supports its products. This is especially advantageous for startups trying to make a name for themselves in a crowded market.
Greater Engagement and Conversions
Influencers have the power to provide creative and authentic content that appeals to their followers. Startups may increase website traffic, sales, and conversions by collaborating with influencers relevant to their brand to raise demand, initiate conversations, and motivate potential buyers to invest in their products or services.
Generation of User Content
Most followers of an influencer love to emulate their favorite creator and often end up creating user-generated content for a brand the influencer is collaborating with. This can be very beneficial for a startup since more content created by the general public can increase brand awareness, demand, and credibility while leading to the automated creation of a plethora of content that the brand can promote for days to come without spending a dime.
What are the Different Types of Influencer Marketing for Startups?
There are multiple startup influencer marketing strategies you can try to attract attention to your brand. Let's see what they are.
Contests and Giveaways
Everybody loves freebies, and contests and giveaways can be one of the best initiatives to direct attention to your newly-launched startup. These campaigns mutually benefit both you as well as your target audience. Contests and giveaways ensure brand growth through comments, shares, retweets, and follow-ups. This may ultimately increase prospective conversions and, as a result, increase your influencer marketing ROI.
Investing in established influencers in your niche can accelerate your progress compared to relying solely on your brand's content. After collaborating with an influencer, you provide them with a campaign brief outlining your expectations, rules, criteria, or themes to create sponsored content.
However, it's crucial to allow creative freedom since influencers are more familiar with their followers. The influencer then creates marketing content (photos, videos, carousel posts) to promote your brand and expand your reach to new, unexpected locations. In essence, influencer marketing utilizes the influencer's voice to engage with a broader audience and increase brand visibility.
Startups use affiliate partnerships to give influencers custom tracking links or discount codes to share with their followers. The influencer receives a commission when a follower uses the link or promo code to make a purchase. It is a performance-based strategy that enables entrepreneurs to monitor the success of their relationships with influencers. It is also a cost-effective strategy to engage many influencers in the same campaign and reach out to more potential customers at scale.
Social Media Takeovers and Collaborations
Startups can collaborate with influencers on a social media takeover and create content from their perspective, showcasing the startup's products or services. This requires a high level of trust, as you'll need to share your login information with the influencer.
To address security concerns, you can use tools that enable influencers to create content without accessing your login information. This collaboration offers an opportunity to provide your audience an exclusive behind-the-scenes view of your brand through the lens of their favorite creator, helping humanize your brand's values and connect with the desired audience.
Building long-term relationships with established niche creators can be pivotal to a brand's image, especially if it is a startup. This is because most startup brands tend to jump on trends and burn money fast in order to gain customers. However, ones that can successfully identify engaging content creators whose personal brand values align with the company's and patiently nurture them into brand ambassadors and evangelists can reap huge ROI from the latter's follower base.
How to Start Influencer Marketing for Startups: Tips and Best Practices
If you collaborate with the right influencer for your startup marketing campaign, chances are you can boost your brand's visibility, engagement, and overall growth manifold than if you invest in any other organic or paid marketing campaigns. However, first, you need to know some tips and best practices to maximize your influencer marketing for startups ROI.
#1 - Identify the right influencers
Before you identify the right influencers for your startup brand and create a robust marketing strategy, you need to do two things—define your influencer marketing goals and thoroughly research your audience.
Your influencer marketing campaign objectives may include the following:
- driving brand awareness,
- initiating meaningful conversations with potential customers,
- break into new markets and reach new audience segments,
- drive sales and revenue, etc.
Understand your target audience by considering demographic (age, gender, location) and psychographics (interests, habits, browsing trends) characteristics. Weed out creators who don't align with your criteria until you're left with those who cater exclusively to your target audience and share your startup's values. Select influencers based on their audience demographics, content authenticity, engagement rates, track record, prior brand partnerships, and brand compatibility.
#2 Inspire brand influencers to be creative
When collaborating with influencers, it's important for startups to allow room for their creativity while adhering to their own brand playbook for self-created content. Influencers have gained followers through their authenticity and expertise, and respecting their creative process is crucial.
Influencers invest significant time crafting engaging content that resonates with their audience, and micromanaging them can be detrimental. It's essential to recognize that influencers understand their audiences best. While providing brand assets and guidelines, startups should give influencers creative flexibility to achieve optimal results in influencer marketing. Influencers can seamlessly integrate brands into their posts, ensuring their content aligns with the brand's expression.
#3 Leverage micro-influencers to maximize their marketing efforts
Being a startup, you are bound to face some budget constraints, which may make partnering with macro and mega influencers initiatives out of reach. But that doesn't mean your brand cannot grow with influencer marketing. In fact, you can ensure brand growth using micro-influencers and nano-influencers.
Research indicates that more than 82% of consumers are more likely to buy a product based on the recommendation of micro-influencers. Your startup influencer marketing initiatives can, therefore, not only target more niche prospects, thanks to the hyper-focused audiences of these micro influencers but also do it at a smaller cost since the latter charge significantly less than their counterparts with celebrity status.
#4 Build long-term relationships with influencers for ongoing marketing campaigns
Long-term partnerships with niche influencers are essential for introducing your brand to potential customers who are genuinely interested in your product or service and likely to make purchases. Startups should focus on fostering authentic relationships with creators who can become the "face" of their brand.
Engage with their content by sharing and leaving comments before approaching them for a partnership. Tailor your communication to each influencer, explaining why they are a good fit and showcasing your research. Highlight how their audience aligns with your target market and the mutual benefits of collaboration.
Once they agree to promote your startup, compensate them according to industry standards and show appreciation for their content. Maintain interaction with both sponsored and non-sponsored content to strengthen the relationship and transform the influencer into a brand ambassador, with their audience becoming loyal customers.
#5 Leverage user-generated content along with influencer marketing
UGC is a valuable form of social proof, particularly for newly-launched startups. To encourage UGC creation, utilize giveaways and contests as incentives to boost brand awareness.
Collaborating with influencers can enhance UGC campaigns by having them promote the initiative to their followers, inspiring audience participation. Influencers can stimulate creativity, act as role models, and expand the reach of your UGC initiatives.
Additionally, work with influencers to create UGC specifically for your brand, instructing them to showcase your products or services and encourage their followers to join the campaign. You can also ask influencers to incorporate UGC from their audience in their content, including endorsements, customer experiences, or UGC materials within sponsored content, further adding legitimacy and social proof to your brand.
What are the Potential Risks or Challenges of Using Influencer Marketing for Startups?
Here are some potential risks of using influencer marketing for startups that you should be aware of —
Authenticity and Credibility
Ensuring the influencer's follower base perceives the collaboration as something more than a sponsored advertisement can be challenging. If authenticity is compromised, it can lead to both the brand and the influencer losing the trust and credibility they are trying to build or have already cultivated amongst their followers.
These can occur when the wrong influencer is chosen or when clear campaign objectives are not set, wasting time and money. Identifying and working with influencers who share the brand's values and connect with the target prospects is critical—this is why startups need thorough research.
Measurement and Return On Investment (ROI)
It can be difficult to determine the impact and ROI of influencer marketing, especially since most campaigns may involve more than one end objective to be fulfilled by multiple influencers. To gauge the effectiveness of an influencer's efforts, startups must set key performance indicators (KPIs) and monitor metrics like engagement, reach, conversions, and brand sentiment regularly.
Partnering with the wrong influencer who does not adhere to brand guidelines may also damage the brand's reputation. If an influencer exhibits questionable behavior or receives criticism for their actions or content online, it will likely affect your startup's reputation detrimentally. To reduce these potential risks, influencers must be continuously monitored and verified, even after successful partnerships have been carried out.
Compliance and Disclosure:
Following legal requirements, adhering to industry-best marketing regulations, and ensuring sponsored content is properly disclosed is crucial. Failure to disclose influencer collaborations, and any important information on either side, may later cause legal problems and harm the reputation of the influencer and the brand.
Examples of Startups Growing with Influencer Marketing on different social media platforms
Here is a list of three startups that have skyrocketed their growth with successful influencer campaign:
The founder and CEO of Glossier, Emily Weiss, started out as an influencer and thus, was well aware of the power of influencer marketing. Glossier has utilized creator partnerships to turn itself into a household makeup brand and successfully upholds its reputation as a "people-powered beauty ecosystem" by regularly featuring user-generated content on its Instagram page. They also sponsor a robust affiliate program with great incentives that ensure creators work hard to bring in sales for the brand.
Fabletics (from JustFab)
JustFab started out as an e-Commerce retailer brand, but in 2013, it partnered with Kate Hudson multiple times, slowly incorporating her into the brand until she finally transitioned into the co-founder of their athleisure line Fabletics and helped the brand expand into a multi-faceted fashionwear brand worldwide.
Vitamin supplements have saturated the market in the post-pandemic era. So, how did Sugarbear make a mark for itself? With a bright shade of cyan dominating its Instagram feed and influencer partnerships with famous Gen-Z personalities like Kylie Jenner, Sabrina Carpenter, and Emily Ratajowski, Sugarbear entered the market to make supplements trendy—and it paid off. The company currently generates revenue of $6.5 million annually, a mere 8 years after its launch.
How Can inisghtIQ Help You Kickstart Influencer Marketing For Your Startup?
Startups require detailed creator data to succeed in influencer marketing campaigns.
InsightIQ is a Comprehensive, Secure, and Reliable API-based solution for Influencer Marketing. insightIQ allows you to find influencers from any platform, with possibly any & every filter you could need. You can now track your IM campaigns and optimize for ROI.
We have a comprehensive database of 250Mn+ creators and influencers across all geographies and 20+ industries.
Want to know more? Book a demo today!