Why Influencer Marketing Plays Important Part of E-commerce | Influencer Marketing Statistics 2019

From 1995-2015, E-commerce was developing at a high speed around the world, many famous companies were born during the time period, like Amazon, eBay, Alibaba, Shopify and etc. These companies are all game-changers who changed traditional retail and trade and empowered millions of merchants to sell products all over the world.

In addition to the great companies, some small and medium-sized sellers are also riding on the dividend of internet user growth, they built websites to develop their brands and grow business.

How do they get traffic? 90% of sellers purchase traffic from Google and social media platforms like Facebook, Twitter. They ran PPC advertisements to get sales. However, more and more merchants start to sell products online and added millions of products in different categories.

To display products at the top of the search result and news feed, merchants spent more budget for ads which increases the market competition and traffic cost.

You know what, the profits of e-commerce= Sale price- Cost of product- Cost of shipping- Cost of traffic. When traffic cost rise year by year, the profits will decrease. Besides, if a product listing can’t get enough organic traffic or take the traffic cost, the merchant will lose money or being discontinued. In order to make the products profitable, some smart sellers began to search for new ways to drive traffic, so influencer marketing came to light and tried by them.

From 2016, influencer marketing grows fast all over the world. It has gradually become a common marketing method for e-commerce sellers.

Why influencer marketing favored by advertisers? Because it has 4 advantages that advertisers can’t refuse.

Improve Awareness

As we have known that influencers can reach massive audiences when influencers recommend your brand, the awareness of your brand will increase with views as well. For example, if a YouTube influencer publishes a video, and the video was recommended by YouTube, it means that you will gain lots of exposure for long time. On Instagram, if the post was shared by the loyal, your brand will get massive awareness virally. People will search the keywords of you on search engine or social media, and try to get in touch with you.

Reduce Credit Cost

If a brand is not famous enough, it’s hard for people to trust you. Especially for the merchants who are selling by building a website. Influencer marketing is the best solution to help the merchants get sales because it is an effective marketing behavior.

What is marketing? The example can help you understand it well by comparing it with selling. A has products and he wants to tell B how good his products are, this is selling. Identically, A has products, C is the friends of B, but he finds C to tell B how good his product is, this is marketing. It’s easy to judge which way can get better performance.

Therefore, if an influencer told his audiences that the advantages of your products and brand, the followers are willing to trust and buy your product.

Optimize Search Engine Rank

Cooperating with influencers can increase the search rank of your website. When influencers introduce your brand to the audiences, they will search the keywords on the search engine. This simple behavior can increase the search volume and clicks of your brand. Besides, when the content was shared by people, it means that you earn a lot of high-quality and authentic backlinks.

In addition, influencer marketing can save 50% of time doing SEO and optimize the traffic structure of the site. In essence, when influencer inserts your link in the description, it also helps do the link building.

Get Higher ROI for Your Business

ROI is the return on investment, it is usually used to measure whether a business is profitable or not. Influencer marketing has lower traffic and higher sales, the picture below is a website build and run by myself, it is the most convincing proof. The ROI of the website is over 2.8.

The premise of all is that we must choose the right influencer who has excellent engagement and your target audience. For example, if you are a merchant who sells fashion clothes online, you can not cooperate with influencers who make content about pets or science. Besides, if the influencer has fake views and subscribers, it is a pity that you waste your money absolutely.

How to find high-quality influencers? I would like to share a website that can help you well for influencer marketing. It is a powerful search engine to help you make the influencer insights, just paste the name or link in the search bar and get the results.

The engagement rate is a good data index to help us judge if the influencer is worthy to work with. Just click the video analysis tab to get the rate. Generally speaking, the engagement rate is greater than 8% means that the influencer has a high- quality channel. This can help you make judgments and ensure your ROI. Just say good-bye to the fake influencers.

Conclusion

Influencer marketing can help e-commerce merchants improve awareness, reduce credit cost, optimize search engine ranking and get higher ROI. To face the fact that traffic cost is rising year by year, it is really playing a very important part of today’s business. Thanks to the time bring us the opportunity and tools, we need to do it better instead of asking why it important, do you agree?

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