Finfluencer up!
When it comes to financial services and influencer marketing, there are more specific considerations than just how many followers an influencer has – regulatory compliance, reputation management, authenticity, micro vs. macro influencers, and of course, the dreaded “cringe factor” all play a part.
Like any other form of marketing, influencer marketing isn’t a silver bullet, but it can be a valuable supplement to a campaign.
If you want to ensure that the influencer talking about your product resonates with your audience and stays in bounds on compliance, keep reading!
It ain’t our first rodeo:
B2C vs. B2B feedback
Sprout Social reports 49% of consumers make purchases at least once a month because of influencer posts, and 86% make a purchase inspired by an influencer at least once a year.
On the B2B front, a new report from Ogilvy shows 75% of marketers are actively employing influencer marketing with 93% planning to amplify their B2B influencer campaigns. But 60% had not experienced enhanced lead generation from their efforts thus far.
This leaves significant opportunities for financial brands to not only take a more deliberate approach to B2B marketing but also improve upon what’s working in B2C campaigns.
Tips and traps for fintech and finance
Financial services brands considering influencer marketing have specific considerations, including:
> Regulatory Compliance: From adherence to financial regulations to legal disclosure, the amount of risk associated with a financial services influencer campaign is much higher than a traditional consumer brand campaign.
There will need to be more time spent pre-campaign to mitigate the risks associated with influencer partnerships, including reputation management.
> Content Authenticity: AKA the “cringe” factor. Ensure that the content created by influencers is authentic and resonates with your audience. Overly scripted or forced endorsements can damage credibility.
> Micro vs. Macro: 47% of influencers are micro-influencers and choosing a micro-influencer over a macro-influencer can be advantageous for financial services brands because they often have a more engaged and niche audience.
While they will likely have a core group of trusted followers, it’s important to set expectations with leadership when it comes to potential impact.
> Measurement and ROI: It’s critical to define clear KPIs before launching the campaign. This might include metrics like engagement rates, lead generation, conversion rates, or changes in brand perception.
Evaluate both the short-term metrics and the long-term impact, as financial services often requires longer customer journeys than consumer products.
> Brand Fit: For any influencer campaign, it’s important to make sure the brand of the influencer – who often have their own unique personas – is a fit for the company. A mismatch here can cause the campaign to fall flat.
> Brand Safety: Associating with influencers who might engage in controversial behavior or share misleading information can damage your brand’s reputation and erode customer trust.
Ensuring brand safety helps protect your company from regulatory risks and maintains the integrity and reliability that are vital in the financial sector.
How the Wild West of Finfluence is Won
As influencer marketing continues to evolve, financial brands must stay ahead of the curve by understanding and adapting to new developments in the space.
Let’s explore some of these emerging trends that are shaping the future of influencer marketing in the financial sector.
> Rise of AI: While tools like TikTok Symphony are revolutionizing how brands create content by using AI-driven features, the rise of AI-generated images, and deepfake videos could lead to mistrust in influencer marketing.
One interesting UK initiative comes from Santander, who partnered with finfluencer ‘Mr Money Jar’ to help raise awareness about deepfakes through a series of videos.
> Growth of niche: Influencers will continue to develop expertise in their niche or industry, making them even more sought after by brands in those verticals.
> Platform shifts: Traditionally viewed as a hub for career networking and job postings, LinkedIn is increasingly becoming a vital player in the influencer marketing arena.
> Longer partnerships: Brands are increasingly recognizing the value of developing deeper, longer-term collaborations with trending influencers who align with their brand’s values and audience.
> Follow the money: Where engagement happens, marketing dollars typically follow—which is why 75% of B2B marketers invest in influencer marketing and why industry leaders like Intel and Hootsuite are developing relationships with LinkedIn influencers.
Wrangle your next finfluencer
As the landscape of influencer marketing continues to evolve, particularly within the financial services sector, a one-size-fits-all approach won’t cut it.
By carefully selecting influencers who align with your brand values, ensuring content authenticity, and adapting to new platforms like LinkedIn, financial brands can unlock the full potential of influencer marketing.
Whether you’re just beginning to explore influencer marketing or looking to refine your approach, staying ahead of these trends (or getting help from someone who does) will be key to your success in this dynamic space.