Peer-to-peer marketing is now more effective than using celebrity influencers.
In 2004, 20% of ads included celebrities. By 2012, that number had dropped to 9% and continues to decline. Because: Authenticity.
Consumers are more and more skeptical about celebrity endorsements. Do we really believe that Tiger Woods drove a
Buick
? (Pretty sure Elin smashed the window of his Escalade with that golf club...). Or that Penelope Cruz and her sister sit around playing
Nintendo
by their beautiful pool? Not buying it.
In some cases, ads that
seem like celebrity endorsements
are actually fake news. The FTC has their eye on these annoying and sometimes illegal ad campaigns that we see all over social media. In 2018, social platforms are taking stronger steps to weed out fake ads, which is why its more important than ever to make sure your ad copy is consistent with the message on your website or landing page.
It's reasonable to understand why fewer major consumer brands are spending the money on celebrity endorsements, but what about the rest of us?
Here are some impressive statistics from
CrewFire
:
- The average small business gets 60% of its business through referrals.
- Companies with formalized referral marketing programs saw 86% more revenue growth over the past two years when compared to those that have yet to formalize.
- Marketers that use tools to power their referral programs are 3x more likely to accelerate referral flow, yet only 22% have a tool in place to effectively scale peer-to-peer marketing.
- Referred customers are 400% more likely to refer customers to your brand than non-referred customers.
- 49% of consumers indicate friends and family as their top source of brand awareness.
- Only 15% of consumers trust content created and shared by companies.
How important is social media?
- 65% of social media users indicate using social networks to learn about brands, products, and services.
- 43% of social media users report having purchased a product after sharing or "favoriting" it on Facebook, Twitter, or Pinterest.
- 81% of consumers report social posts from their friends and peers directly influencing their purchasing decisions.
What about internal employee programs?
Peers are just as important in internal employee reward and recognition programs. While its certainly important to be recognized by management for accomplishments, programs that offer peer-to-peer recognition components find that they contribute to a more positive company culture and offer the opportunity for co-workers to recognize those who are going above and beyond. Recognition from those who are at the same level and know exactly what you're going through can be especially meaningful.
Whether you are constructing an employee recognition program or a consumer marketing campaign, don't underestimate the power of peers!
