Why Consider Influencer Marketing for Your Financial Service

Everyone is on social media these days. With people being dependent on their handheld gadgets, Internet marketing is hard to avoid. Different industries have seen a growth in their following, thanks to Internet marketing efforts that include social media marketing and search engine optimization (SEO).

Influencer marketing is a big industry these days. Its growth is fast and secure. In fact, based on influencer marketing statistics, the industry is expected to rise in 2021 and will be worth $13.8 billion. It covers sponsored Instagram ads, YouTube ad inserts, and even blog posts. The content that influencers produce for the brands that they endorse dramatically shape the buying behavior of their followers.

The beauty, travel, fashion, and fitness industries were the first ones to adopt influencer marketing. But financial services can also benefit from it. Here’s how your financial company can benefit from using influencer marketing for your next campaign.

Wide audience reach

The beauty, fashion, fitness, and travel industries adopted influencer marketing early on. With the COVID-19 pandemic, fitness and travel industry sales are at an all-time low. But financial services can leverage this situation by releasing marketing campaigns that are geared toward the audiences of these industries.

A recent study has shown that 44.7% of internet users in the U.S. aged 18 to 34 have purchased an item recommended by an influencer they follow. While the age group covers Gen Z and millennial markets, older audiences are also motivated to purchase items and services promoted by someone they deem influential.

Although there is a difference among the priorities of audiences from different age groups, they are all looking to improve their overall financial health. Hence, seeing an ad about a financial service will be of help to them. Whether it be for starting insurance or for advanced credit risk analysis and management, these ads will never go unnoticed.

Influencer marketing builds trust and connection to your target audience

Communication is essential in marketing, especially now, when the world is under a pandemic. Although the audience of today is heavily reliant on technology, they want an authentic experience. This is why they take their trusted influencers’ recommendations when they need help for a particular life event.

Influencers who share your market and reflect the values of your company or brand can help promote your products and services. These influencers produce content that is relatable to your target audience.

They do not promote your products directly, but their content shows why and how your products work. They usually tie their content about your services to their personal life experiences. They can talk about saving up for a home, planning for a travel, or preparing for a wedding. These stories help humanize what financial companies can do for their customers.

Influencers connect your products and services to the needs of your target audience. This kind of marketing also promotes the benefits of following a particular lifestyle. It encourages the reader to be on the same boat, rather than urging them to “try it today.”

Influencers can boost your company’s credibility

One advantage of having influencers promote your products is that they can boost your company’s credibility. Whether you are just starting out or have been in the business for a while, influencers usually help brands they trust. People will take an influencer’s word for your services. It works just like word-of-mouth marketing, but on a wider scale.

Display ads could go unnoticed, but influencer content is not as stale as other advertising materials. It can attract engagement to your brand through the likes and comments that the influencer has gained with your product placement. Influencers can also run promotions or contests that will encourage their followers to visit your social media pages or your official website.

Things to consider before pursuing influencer marketing

The influencer marketing business also has to be compliant with the rules established by the Financial Industry Regulatory Authority (FINRA). Compliance with those rules should be practiced for every influencer post under your brand’s name.

Influencer marketing is no longer a niche; it is an important marketing strategy that will draw in more customers for your brand. Moreover, creating content can take up a lot of your resources and time. If you want your brand to get the best return on investment, you have to put a lot of effort into your influencer marketing campaign.

There are many banks, credit unions, and financial businesses that have already established their newfound reputation through influencer marketing. This tool provides your brand with the opportunity to convey important messages in memorable ways.