This is one of the fastest growing channels for marketing.
Market Definition for 1001 Startup Ideas – Platform for Social Media Influencers
With the increasing reach of social media, the social media-based marketing has been on the rise over last few years. In 2017, the total number of social media users worldwide was reported to be around 2.5 billion. As per statitica.com, as of 2016, 78% of the United States population had a social networking profile.
Talking just about Instagram, which is currently the fastest growing social media platform; the brand sponsored influencer post is projected to reach to 32.3 million by 2019 from just 9.7 million that was reported in 2016 showing 50% YoY growth. The total market size is also increasing at the same rate and is expected to increase from $1.07 billion in 2017 to $2.38 billion by 2019.
Competition Analysis for 1001 Startup Ideas – Platform for Social Media Influencers
Refluence is San Francisco based company that provides scalable contents for brands using the power of influencer network on its’ platform. Through the platform, they empower the content creators and influencers to make revenue from sponsorships, endorsements, and collaborations with brands so that they can focus on their core. They claim to have made over 119,000 creators/influencer to brand connections till date. The company has developed deep algorithms to identify the right content and influencers for the brands for maximum traction.
Another company is Influence.co, which is an open platform for influencers to build show their work and find collaboration with brands, agencies and other professionals in the digital marketing industry.
Pain Point & Target Audience for 1001 Startup Ideas – Platform for Social Media Influencers
There will be two kinds of the target audience for the startup; one would be the social media influencers who have a significant following on the social platforms, and second would be the brands and marketing agencies that are looking for influencers driven social media marketing campaigns.
It becomes very difficult for the brands to cut through all the competitions and establish a unique recall among their audience. Also, the direct marketing is very expensive with low ROI; and often these direct marketing are not perceived as credible information as thousands of other brands make the same claims. Based on a survey, 92% of the customers trust recommendations from influencers over brands.
Value Proposition for 1001 Startup Ideas – Platform for Social Media Influencers
The proposed startup will establish a platform for social media influencers with their complete social and domain profile along with market reach and engagement. The brand and agencies can post their requirement; campaign theme and goal on the platform and through smart algorithm the platform will match the most suitable influencers to the brand.
The brands will also be able to be able to go through a complete list of influencers on their own and find a most suitable match to their requirement.
The whole process will provide an efficient channel for brands to access social media influencers on a single platform. At the same, influencers will get an opportunity to generate revenue through their social media reach through the platform.
Business Model for 1001 Startup Ideas – Platform for Social Media Influencers
The startup will work on online marketplace model and charge a success fee for every transaction. The startup can also provide A-Z online marketing solution to the brands where it can also create and curate the content and then match it with the most suitable influencers as per project goal and available budget. For this A-Z solution, the startup can set-up monthly subscription plans.
Way to Market for 1001 Startup Ideas – Platform for Social Media Influencers
The startups need to start with setting up a standard marketplace platform and then start onboarding influencers from different domains. To start with, the startup can focus on the influencers from the lifestyle, fashion or fitness domain to gain early traction. Then the startup should start with business development among the brands in these domains. The startup should also integrate social media tracking tools on its platform to measure the effectiveness of the campaigns.
The algorithm to match influencers with the brands and campaigns should be made as a next stage.
Key Milestones for 1001 Startup Ideas – Platform for Social Media Influencers
The startup must set-up the basic platform in the first month; post which it should start onboarding the social media influencers. The startup should target to onboard atleast 400 influencers from the identified domain in first 4 months. Domain-specific 400 plus influencers from targeted geography would be a good stage to start approaching brands and marketing agencies.
Investment needed for Prototyping Platform for Social Media Influencers
The startup should look to raise upto $75k from angel investors or accelerators focused on marketing or e-commerce related businesses. Partnership with any media company backed acceleration or incubation program could prove very beneficial to the startup.
Team Capability | Platform for Social Media Influencers
The startup must have co-founders with deep expertise in social media marketing and content creation. It would be best if they have few years of experience in working with a reputed digital marketing company.
Plus it would be an added advantage to have a partner or advisor to the startup who is social media influencer himself. The person would be pivotal in getting other influencers onboard.
Investor/Expert Take | Platform for Social Media Influencers
Social media marketing, and more precisely, influencer based social media marketing has gained huge trust and traction among the user community. But we still see brands and companies making it just a fraction of their overall marketing plan. Often the main reason is the inability to cut through an ocean of content on the social media channels, and reach to a targeted customer segment. Social Media Sponsored Ads helps up to a certain extent but they are expensive and their trust factor is low among the user segment, and at best it can be used to spread the word about the new sale or discounts but not building the brand perception.
That’s where Influencer based marketing plays a key role in providing an effective channel to reach directly to the target customers. The industry growth is at its all-time high, and with the industry shifting more towards organic and content-driven growth we see influencer-based marketing finding itself at the center of the marketing strategy.
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