In the marketing circle, you may have been hearing or speaking about the term ‘ influencer commerce ‘. The most likely reason being it’s a a new strategic approach implemented by brands and marketers changing how commerce is done, but influencer commerce is an extremely simple sounding term although when put to explaination will keep people thinking.
There is a good reason for that. Although influencer commerce is a simple sounding term, it is a multi faceted marketing approach that is still in its initial days.We break it down here, with a definition and look at the trends behind influencer commerce.
When defining such a broad concept like influencer commerce, we will break it down first for simpler interpretation.
Commerce – Online activities that relate to the buying and selling of goods and services across both online and omni channel. This includes all possible touchpoints with a consumer from discovery through conversion that inform their decision and lead to a commerce outcome, such as a sale or sign up.
Influencer – a person or thing that inspires or guides the actions of others with the help of influence he/she/it has on others.
If we put those together with one key addition , commerce data and intelligence – we arrive at the final definition for Influencer commerce.
The key to is having large scale commerce data ( purchase and intent data) adding it to continuously enrich audience and add contextual relevancy , connecting it to the right influencers delivering the right experience in the right place.
It’s also about delivering relevant experiences at all stages from discovery, to consideration to conversion and retention while driving measurable commerce outcomes at each stage.
If we take the high level view, influencer commerce is that virtuous circle where marketers, influencers and consumers all mutually benefit.
- about using commerce data (purchase, intent) to inform marketing decisions, improve targeting, create efficient, effective experiences, and deliver richer consumer experiences continuously.
- only possible with intelligence that can analyze and apply commerce data to deliver richer consumer experiences.
- For marketers and influencers, it helps all parties increase marketing returns perpetually bringing influencers, marketers and consumers across a single value chain.
- Full funnel , it reaches consumers throughout the shopping journey.
- Omni channel , it enables traffic across online as well as other possible channels to drive sales, leads and revenue.
- Trackable to desired outcomes, to see the direct impact of digital campaigns on KPIs.
- Open, Influencer commerce connects marketers and influencers on the open internet, where control and transparency reign. Essentially, it creates an open internet marketplace.
Pandemic brought the world online to shop, and their new online habits will continue post-pandemic. Worldwide ecommerce is predicted to approach $5T in 2021.
How we can connect with consumers is changing: Growing privacy regulations and third-party cookie deprecation have marketers and media owners looking for new ways to reach and monetize audiences that are shopping online more than ever.
First-party and zero party data is a huge opportunity for retailers: Because of the point above, marketers are focused gathering and scaling first-party and zero party data. Connecting with retailers can be a win-win for both parties.
Trade marketing is shifting to digital: Brand dollars are following their consumers online. A new channel can enhance trade marketing opportunities.
Today, influencer commerce on the open internet is fragmented, with multiple service provider jis and platforms all operating separately and locally. But as privacy regulations continue to grow and third-party cookie deprecation looms, marketers will be looking for more streamlined solutions to manage, scale, and activate first-party data and addressable audiences. Expect to see the Influencer commerce space quickly advance along those lines to make it easier for marketers and influencers to work together to bring richer experiences to consumers.